Limited Liability Company

A Limited Liability Company (LLC) is a legal tool that can be used to insulate risky assets from your safe assets. Examples of risky assets would include rental property‚ commercial property‚ cars‚ boats‚ airplanes‚ etc.‚ as well as business ventures you might undertake. The LLC structure allows for complete control of the asset and pass through taxation to the members (owners) of the LLC (for income producing assets). For asset protection purposes‚ the LLC acts as a legal shield in the event that the asset owned by the LLC becomes a source of liability. Owning that asset through the LLC limits the liability of the members to only the assets of the LLC while protecting the members’ personal assets from creditors.