Archive for the ‘Asset Protection’ Category

» Understanding Asset Protection On Sunday, January 11th, 2009

While always a crucial consideration, as the economy in the United States and the world over has become more volatile and uncertain, asset protection has become an even more significant concern for people from different walks of life. Through this article you are provided an overview of different asset protection techniques and practices. Armed with this information you will be in the best possible position to more fully and completely protect your assets today and into the future as well.

One of the most important tools that people interested in asset protection are using today is the limited liability company or LLC. Over the course of the past fifteen years a considerable number of people who have been involved in starting a new business enterprise as well as individuals who have asset protection as a primary concern have been turning to the LLC as a means of accomplishing their goals.

The reality is that in the simplest of terms an LLC provides to an individual all of the protections that accrue to a corporation, including a Sub Chapter S corporation. In other words, should an issue arise in which a client, customer or some other individual or entity have a legal issue with a business venture, the scope of liability stops with the LLC enterprise itself and the assets contained within that entity.

Absent a structure like an LLC, assets beyond the business venture – an individual’s personal assets – could be at risk if a lawsuit arose. Obviously, when it comes to protecting assets in this day and age, shielding assets appropriately and in this manner is a fundamental task.

The beauty of the LLC rests in the fact that you get all of the protections associated with a corporation but do not have to do all of paperwork that is associated with a corporate enterprise. The fact is that the asset protection that can be realized through a corporation can be defeated if the proper paperwork – corporate minutes and so forth – are not in proper order. With an LLC there are none of these burdensome requirements.

Of course, some people still do utilize the Sub Chapter S corporation as a means of protecting assets. However, as has been mentioned, it is important for all of the paperwork to be in order in order for a person to be able to achieve the asset protection benefits associated with a corporation. In simple terms, if you set up a corporation and do not act like a corporation, a person intent on attaching assets beyond the corporation – your personal assets – very likely will prevail.

If you have any specific questions pertaining to asset protections, if you are interested in establishing an LLC or some other type of legal structure as a means of protecting your assets, there are attorneys who specialize in this type of work. Therefore, you likely will be best served engaging such an attorney to assist you in setting up the best structure in order to protect your assets.

 

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