If you want your business to be successful, you must put forth a great deal of effort. It takes a great business plan, a strong work ethic, and a good bit of talent to become a successful businessperson.
Because you worked so hard for your success, you clearly want to make sure that you protect your personal resources. This can sometimes be done through the creation of a limited liability company.
A limited liability company gives you the best of both worlds to a certain extent. You enjoy the personal asset protection that would be afforded to a corporation, but you can take advantage of flow-through taxation.
When your business entity is a limited liability company, your personal assets are protected from the actions of the business. If someone wanted to sue the limited liability company, only the company’s assets would be in play.
However, even though you have this level of asset protection, you can still claim the profits and losses from a limited liability company on your personal income tax return.
You would want to make sure that you create a limited liability company as a preventative measure. If you were to create an LLC as a reaction to a legal action, this could be construed as a fraudulent conveyance, and fraudulent conveyances are illegal.
Learn More About Limited Liability Companies
We have provided a very basic overview in this blog post. To learn more about the value of limited liability companies, download our in-depth report.
This report will answer most of your questions, and it is being offered to our readers on a complimentary basis at the present time. To get your copy of the report, click this link and follow the simple instructions: Free Report on Limited Liability Companies.
Asset Protection Information
A limited liability company can be a good choice for many people, but there are other asset protection strategies that can be implemented. For example, family limited partnerships are often utilized by people who want to protect assets. These partnerships can also provide transfer tax efficiency.
In addition to the report on limited liability companies, we also have a special report that looks at asset protection from an overview. Our asset protection report is also free, and you can visit this page to access your copy: Asset Protection Report.
Set Up a Free Consultation
Asset protection can be just one of your concerns as a small business owner who is creating a long-term financial plan. If you would like to discuss your objectives with a licensed professional, our firm can help.
We offer free consultations, and you can send us a brief message through our contact page to set up an appointment: Hartford CT Financial Planning Attorneys.