Overview of Corporations
The key strategy of a corporate entity is to insulate the owner's personal assets and/or the assets of other businesses from the debts of the business. A limited liability company (LLC) can provide similar protection. But unlike a LLC, a corporation is actually a poor entity to protect personal assets. The two primary drawbacks of using the corporation as a personal asset protector include:
- Assets transferred to and from a corporation can create various consequences, and
- Personal creditors can seize any shares you own in a corporation as well as any benefits owed to you by the corporation.
A limited liability company (LLC) and a limited partnership (LP) will overcome these corporate disadvantages and can play a more important role in personal asset protection planning.
PROTECT YOUR ASSETS TODAY!
The best defense is a good offense.