The Limited Liability Company (“LLC”) is an excellent business
entity to use for protecting rental or investment real estate properties.
However, using such entities in an Asset Protection Plan should only be
done by experienced Asset Protection Professionals. The Limited Liability
Company is typically used as a compliment to the foundation of an Asset
Protection Plan, which oftentimes consists of a general partner LLC and
a limited partnership.
Rental real estate assets are particularly important to protect against
creditors because they are referred to as “liability assets.”
Since third parties are occupying such rental real estate (for your business
purposes), there is an inherent liability aspect tied to such ownership
and the operation of a rental business. It is also prudent, in many cases,
to use a management Limited Liability Company entity to manage such rental
real estate activities. The more removed you are from the rental real
estate business (with regard to using layering asset protection techniques)
the less liability you put yourself at risk for personally. Therefore,
it is also smart to use holding company entities as the owners of the
LLC’s which own the rental real estate. Determining which type of
holding company structure to use is entirely dependent on a particular
individual’s assets. Further, for individuals with a particularly
high net worth, international LLC’s can complement the Asset Protection
Plan and provide further insulation from liability producing activities.
Contact The Presser Law Firm, P.A. to obtain a complimentary consultation
on asset protection, estate planning and/or business law. Our attorneys
are knowledgeable in estate planning, asset protection and business law.
Call us today – (561) 953 1050 or e-mail us at: firstname.lastname@example.org.