| There are many ways in protecting your wealth and all | | | | and claims. This type of entity, LLC, helps eliminate the |
| the things you value. One very useful way in protecting | | | | downside for a General Partner in a Limited |
| all that you have would be Asset Protection. The goals | | | | Partnership entity, which are the liabilities for your |
| of Asset Protection is 1) Use of one or more entities | | | | partners' acts. This entity has a manager(s), which |
| to protect businesses and personal assets from | | | | would be you or whomever you wish and as many |
| creditors, judgments and seizures 2) Minimize federal | | | | additional members as you wish. Each of these |
| and state taxes 3) Confidential ownership of business | | | | members can contribute assets to the LLC. |
| and personal assets. So how do we do all this? A few | | | | In addition to Limited Partnerships and LLC, |
| tools that we use in protecting our assets are through | | | | Corporations can also help in protecting your assets, |
| Limited Partnership, Limited Liability Companies, and/or | | | | especially for business purposes. Your assets would |
| Corporations. | | | | be owned in the name of the corporation. Debts, credit |
| Starting with Limited Partnerships, this tool is comprised | | | | cards, vehicle loans, mortgages, and the like would be |
| of one General Partner and one or more Limited | | | | in the corporate name. Through the corporation you |
| Partners. The General Partner is the only one who has | | | | have limited your liability and gained a great deal of |
| control over the partnership, its assets and its wealth. | | | | privacy and protection. A corporation offers many tax |
| Similar to a Living Trust, a Limited Partnership is nothing | | | | benefits, unlike a sole proprietorship. By using a |
| more than a document or an entity, which legally holds | | | | corporation, you can take advantage of the 15% tax |
| title to assets. | | | | bracket which is a lot lower than individual rates, which |
| Besides the Limited Partnership approach, there is also | | | | can go all the way up to 39%, and that doesn't include |
| a more sophisticated approach which is through | | | | the state's share. If you haven't started your |
| Limited Liability Companies (LLC). Limited Liability | | | | corporation yet, or even if you have, you may want to |
| Company is another way in protecting your assets. | | | | convert the corporation to either an LLC or turn it into |
| Limited Partnership and LLC are very alike but there | | | | an S-Corporation. The Standard Corporation, within |
| are two distinct differences between them. In a Limited | | | | which you would have a corporate and individual tax |
| Partnership, the limited partners cannot participate in | | | | liability, is called a "C" Corporation. In a C-Corporation, |
| managing the business, in an LLC they can. Also, in a | | | | tax rates range from 15% up to $50,000 of profits, to |
| Limited Partnership, the general partners are personally | | | | 25% of the nest $25,000. After this, the rates begin to |
| liable for business debts, in an LLC, all owners get the | | | | get closer to individual rates, which are quite high. |
| benefit of limited liability protection from business debts | | | | |