Over the years, we have helped thousands of clients form an entity to protect one of their assets or a main part of their business. Many times, there are other assets, or businesses that we did not discuss that may need to be structured differently.
Let me share with you how we help you build a stronger fortress around your current assets, which include, real estate, investments, IP, ownership in other companies….
Here is a list of the Top 10 Areas to Protect Your Current and Future Assets and Form another Entity (Take Your Own Quick Audit)
Here are the top reasons our research shows you should consider:
10. An LLC to protect the stock of your C Corporation. Even if your living trust owns the stock of the C corporation that will not provide protection from liability (the exception is a Nevada C corporation because Nevada is the only state in the country with the charging order protection for corporations). Are you a part of a C corporation as a majority owner with other partners? How do they hold their ownership interest? If they own it personally that is an issue. Don’t let happen to you what did to a prospect a few years ago when he lost his $3 million computer company from a personal lawsuit!
9. A Single Member LLC to protect the stock of your S corporation. If you own an S corporation and you are sued personally you can lose control of the entire company. If your S corporation provides consulting services and the day you stop there is no value, that may not be a huge concern. If you have any value or residual income that is a big problem. The single member LLC (the only solution, can’t be taxed as a partnership) will provide the charging order protection (in most states, there are a few exceptions).
8. An LLC to be the member of your successful LLC. Even with an LLC if you or your partner are sued personally that will cause a disruption to the operating company with accounting records being reviewed and other legal issues. If you have a successful operating LLC with partners and you are concerned a lawsuit may show up out of the wood work to one of the members personally (which happens often when money shows up) it would be best to have EACH MEMBER have their own separate LLC. Now, the charging order is against their own personal LLC, not the operating company. Make sense?
