When you are the owner of a business or a professional practice, you may be concerned about litigation. You can limit your exposure if you implement the appropriate asset protection strategies. One asset protection structure that is frequently utilized by small business owners is the limited liability company or LLC.
If you create a limited liability company, the business property would be separate from your personal property. As a result, if the business was targeted by litigants, your personal property like your home, your bank accounts, etc. could not be attached.
This is one of the benefits that you gain when you create a limited liability company. Another is the fact that you enjoy what is called “pass through” taxation. You could claim your profits or losses on your personal income tax return as a self-employed individual.
A limited liability company can be a very useful asset protection structure if it is properly created at the right time, but you should definitely steer clear of fraudulent conveyances.
You cannot suddenly create a limited liability company after you find out that you are being targeted by a litigant seeking redress. This would be looked upon as a fraudulent transfer or fraudulent conveyance, and this type of reactive transfer is illegal.
Learn More About Limited Liability Companies
We have prepared an in-depth report that will provide you with more comprehensive information about the value of limited liability companies. The report is free, and you can visit this page to gain access to your copy: Free Report on Limited Liability Companies.
A limited liability company may be a good choice for you if you are a business owner who is looking for asset protection. However, there are other options that are available to you, and the optimal choice will depend upon the circumstances.
In addition to the report that covers limited liability companies, we have another special report that takes a broader look at a wide range of asset protection strategies.
This report is also available to our readers on a complimentary basis, and you can click this link to obtain access: Asset Protection Report.
Schedule a Free Consultation
The information that we offer through our website is going to help you expand on your knowledge, and we encourage you to download our free reports.
At the same time, there is no substitute for a one-on-one discussion with a licensed professional.
If you have questions about the asset protection strategies that are available to you, we can answer your questions and help you take steps to keep your resources out of harm’s way.
We offer free consultations, and you can send us a message through our contact page to set up an appointment: Indianapolis IN Asset Protection Attorneys.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.