What Is a Limited Liability Company?

If you are a business owner, your business or professional practice may be inherently exposed to potential legal actions, even if you take precautions.

A limited liability company is a legal structure that can provide personal asset protection.

With a limited liability company, you receive the benefit of flow-through taxation. This allows you to continue to claim your business profits and losses on your personal income tax return.

If someone was to institute a legal action against the limited liability company, only the assets that are owned by the company itself would be subject to attachment. Your personal assets would not be in play, so you would enjoy asset protection benefits.

Fraudulent Transfers

You may hear about the asset protection benefits and keep the information in your back pocket as it were. If and when you feel as though you may be sued, you could then create a limited liability company to protect your assets, right?

This is not the way that it works. It is illegal to take action to shield your personal resources after you find out that you are being targeted by litigants. This would be construed as a fraudulent transfer or a fraudulent conveyance, and you should steer clear of this activity if you want to stay on the right side of the law.

Probe Deeper

In this blog post we have provided some very basic information about the asset protection value of limited liability companies. If you would like to dig deeper, download our special report on the subject.

This report will provide you with comprehensive information about limited liability companies, and it is being offered on a complimentary basis at the present time.

To get your copy of the free special report, visit this page at follow the simple instructions: Report on Limited Liability Companies.

Asset Protection Strategies

We have an additional report that you may want to access if you have asset protection concerns. A limited liability company can be a good choice under some circumstances, but there are other possibilities.

Our report on asset protection looks at various different strategies that can be quite effective if you want to keep your personal resources out of harm’s way.

Click this link to access the report: Protect Your Assets.

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Litherland, Kennedy & Associates, APC, Attorneys at Law

Litherland, Kennedy & Associates have been providing quality estate planning services in the Greater Bay Area since 1975. They are committed to helping those concerned with protecting their families from the devastating legal effects of disability and death. With the aid of public seminars, educational presentations, articles, and radio/television interviews, the law office has championed the use of revocable living trusts as a proven way to protect families from probate, to minimize or eliminate federal estate taxes, and to prevent the Medi-Cal Recovery lien. Attorneys Justin M. Kennedy and Maggie A. LaBranch-Gonzales are certified as Legal Specialists in Estate Planning, Trust and Probate Law by the California State Bar Board of Legal Specialization. Litherland, Kennedy & Associates are members of the American Academy of Estate Planning Attorneys and National Academy of Elder Law Attorneys.

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