Limited Liability Companies
Protect Your Personal Interests with an LLC
The limited partnership is a mainstay for protection, but the newer limited liability company (LLC) promises to be an even more popular firewall.
The limited liability company is the first significant new legal entity to emerge since the 1950s; more and more, they are springing up. It is already a favorite for asset protection and was initiated in Wyoming in 1977 to help mining developers attract foreign investors. By 1988, limited liability company legislation spread throughout the nation. Members of the limited liability company would be granted different benefits when compared to other types of corporations.
Here are other links that are vital to understanding LLCs:
- Pros and Cons of LLC's
- Tax Flexibility
- Limiting your LLC Liability
- How an LLC Protects your Personal Assets
- Limitations for a Limited Liability Company
- Overview of the Assets your LLC Can Shelter
- Where to Form your Limited Liability
- How the Limited Liability Company Operates Company
If you want to learn more about forming an LLC or about any of the nuanced topics above, reach out to an attorney for limited liability companies at The Presser Law Firm. Contact us online or call (561) 953-1050 today!
Other Advantages to Forming as an LLC
In many situations, the limited liability company can be the superior type of business organization. The LLC is a hybrid entity and it features both the limited liability advantage of the corporation with the advantages of the partnership.
More importantly, a member's interest in the limited liability company is protected. The member's creditor has only the charging order remedy, as you have seen with the limited partnership (LP). Because the limited liability company is comparably protective to the limited partnership, it is equally as useful to title and protect a wide range of assets.
Moreover, neither the limited liability company managers nor members have
personal liability for the debts of the limited liability company. It
can then be an ideal entity to hold liability-producing assets, or to
conduct a business. The limited liability company can offer significant
benefits over the corporation and other business organizations.
Much of what we say here at The Presser Law Firm, P.A. about the limited liability company applies as well to the limited partnership. Considering their similarities, it is not surprising that one lawyer may recommend a limited partnership and another a limited liability company. This doesn't necessarily argue against either since their distinction is so narrow.
Although the limited liability company's organizational, structural, and protective features closely follow those of the limited partnership; there are differences in terminology. Managers run the limited liability company. They compare to general partners in a limited partnership. LLC owners are members. They compare to limited partners.
Yes, You Can Lose Everything!
You may think that your wealth is safe and that you don't need protection. But don't delude yourself and accept reality — For every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it!