| There are a few simple strategies an individual or | | | | Partnership. This type of entity provides a great deal |
| organization can use to provide significant asset | | | | of flexibility in management structure. |
| protection. Individuals might use an LLC if starting a | | | | Insurance is a cost effective way to help protect any |
| new business to protect their personal assets, Real | | | | business. Meet with your insurance and attorney |
| Estate Investor would use it to hold Real Estate, a | | | | together to find what coverage is necessary and best |
| corporation might use it to hold assets like machinery. | | | | suited. The attorney is not selling so objective opinion is |
| Creating a separate entity such as a Limited Liability | | | | often very helpful. |
| Company could shield assets if there were a judgment | | | | Business succession plan is vital to keep owners, and |
| against a business or corporation. To have the entity | | | | family members from starting litigation that is not |
| be legitimate proper legal filings for the LLC are | | | | business related. Absence of this plan can have huge |
| necessary, EIN# for the business, operating agreement, | | | | ramifications, such as:Legal fees, personal relationships |
| minutes from meetings, and who owns shares or units, | | | | ruined, and business that has to be dissolved. Life |
| Board of directors, no commingling of funds. If some of | | | | insurance should be part of this plan and is vital for any |
| these elements are missing a LLC could lose asset | | | | succession plan. |
| protection. This means attorney can attempt to "pierce | | | | General review of a business will help avoid legal |
| the corporate veil". | | | | troubles. Factors to consider are compliance with |
| Limited Liability Companies are a "hybrid" type of legal | | | | employment laws, employee manual review, and a |
| entity that has characteristics of a corporation and a | | | | legal review by an attorney. |
| partnership. Owners are called "members" who elect | | | | None above the above information is legal advice. |
| how the entity will be taxed. It can be taxed as a sole | | | | Consult your own attorney and CPA. |
| proprietor, S-Corporation, C-Corporation, or a | | | | |