Domestic Asset Protection Attorney
Domestic Asset Protection Lawyer About us FAQ Books & Publications Seminars Links & Resources Contact Us
Overview of Corporations
Limited Liability Companies
Limited Liability Partnerships
Family Limited Partnerships
Irrevocable & Revocable Trusts
Equity Stripping

FacebookTwitter Linked In Youtube Google Plus

The Financial Self-Defense Coaches
Online Assessment
Services We Provide
Asset Protection
Legal and Business Counsel
Business Turnaround
Estate Planning

FacebookTwitter Linked In Youtube Google Plus

Limited Liability Companies

While the limited partnership has been a mainstay for Asset Protection for decades, the newer limited liability company (LLC) promises to be an even more popular firewall for the protection of investors and business owners.

The limited liability company is the first significant new legal entity to emerge since the 1950's and it is already a favorite for Asset Protection. First popularized in Wyoming in 1977 to help mining developers attract foreign investors, by 1988 LLC legislation spread throughout the nation.

Many advantages make the LLC a superior business organization for certain types of businesses. The LLC is a hybrid entity that features both the limited liability advantage of the corporation with the advantages of the partnership. More importantly, a member's interest in the limited liability company is protected. A creditor of a LLC member can only obtain a charging order remedy and has few avenues to enforce it.

Because the limited liability company is comparably to the limited partnership it is equally as useful to protect a wide range of assets. Neither the limited liability company managers nor its members have personal liability for the debts of the LLC. As a result it is an ideal entity to hold liability-producing assets or to conduct a business. The LLC can offer significant benefits over the corporation and other business organizations.

It should be noted that a majority of our comments about the limited liability company apply as well to the limited partnership. Considering their similarities, it is not surprising that one lawyer may recommend a limited partnership and another limited liability company. This doesn't necessarily argue against either since their distinction is so narrow.

The LLC's organizational, structural, and protective features closely follow those of the limited partnership but there are numerous differences in terminology. In the LLC, a Manager runs the entity. They compare to general partners in a LP. LLC owners are members, compared to limited partners in the LP.


The best defense is a good offense.