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Salvage car was marked as such on title

Tuesday, August 27, 2013 - 12:01 am

Q.: I traded my car in for a used one nine weeks ago. I purchased that car four years ago from a private owner. The car was salvaged, and it was noted that way on the title.

When I traded the car in, the dealer didn't ask me any questions concerning the history of the car. Now he is saying the trade-in value he gave me was too high. Is there any recourse he can take against me? – F.B., via email

A.: When you traded your car in nine weeks ago, I assume you gave the dealer the title. If the title was properly done four years ago and marked salvaged as you say, the dealer certainly should have read it.

I don't believe the dealer has a legitimate claim against you for not disclosing this at the time of sale.

In short, the person who did the salvaging did it properly and the title was correctly annotated. I don't think you have any responsibility.

Q.: I would like to know what a limited liability corporation (LLC) is. What are the advantages and disadvantages of it with respect to taxes and liability? Who do I talk to – a lawyer, an accountant or both? – Bob, via email

A.: You have essentially three choices. One, you can operate unincorporated. Second, you can incorporate as a Subchapter S corporation, or third, as a limited liability company.

On balance, the advantages of an LLC for the single proprietor are reasonably attractive in terms of taxes and liability limitations. You should talk to a lawyer as to the distinction between the LLC and the S corporation.

Generally speaking, a single-proprietor company, in my opinion, would be better served to operate as an LLC. The least-attractive choice is to operate as an individual.

Send questions to Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.