I have stressed the importance of having the correct legal form when you go into business. Today I will address Limited Liability Company (LLC). All LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit, only the assets of the business itself are at risk. Creditors normally can not reach the personal assets, such as a house or car, of the LLC owners. However, since the assets of the LLC are at risk, for some business owners, the use of multiple LLCs would serve to better protect assets.
For example, I had a client that owned multiple rental properties. Several properties were commercial rentals, and the others were single family dwelling rentals. Given the exposure to significant assets and the different business interests, it would not be prudent to place all of the properties under one LLC. Therefore, multiple LLCs were considered as well as other corporate structures. Are your assets adequately protected? Contact our law offices for expert legal advice.
For example, I had a client that owned multiple rental properties. Several properties were commercial rentals, and the others were single family dwelling rentals. Given the exposure to significant assets and the different business interests, it would not be prudent to place all of the properties under one LLC. Therefore, multiple LLCs were considered as well as other corporate structures. Are your assets adequately protected? Contact our law offices for expert legal advice.
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