All too often, a business is destroyed because of frivolous lawsuits and unscrupulous creditors. You could be at risk of destroying your business and the life you have created for your family.
Limited partnerships (LPs) and limited liability companies (LLCs) are excellent asset protection tools if they are part of a comprehensive asset protection plan. Your personal and business assets can be taken away by creditors and lawsuits. Creating a partnership can provide you with:
1) CREDITOR PROTECTION
- A creditor will not have access to any property that is titled to the limited partnership or to a multi-member LLC.
- A creditor will not have the right to inspect your books and records.
- Relief from the restrictions of charging liens that can keep your company strapped without access to cash.
2) LIMITATIONS ON YOUR PERSONAL AND BUSINESS LIABILITY.
3) SUBSTANTIAL BENEFITS FOR ESTATE PLANNING AND ASSET PROTECTION.
The two most commonly used are the limited partnership and the LLC.
- A limited partnership consists of two classes of partners: general partners and limited partners. The general partner controls the partnership's day to day activities, investments and distributions. A limited partner plays a passive role in the partnership because they invested in the business and have no control over it.
- An LLC is owned by members and controlled by a manager. Members invest the initial capital in the limited liability company, and they incur gains or losses from the LLC's business. An individual can be both a manager and a member of an LLC.
The establishing of partnerships, LLCs and asset protection plans is a complex process that requires knowledge and experience. If the documents are not drafted correctly and the plan is not structured correctly a court may view it as a sham or a fraudulent transfer.
At Eric H. Light P.A., we are able to assess your situation and, along with your goals, determine the proper entity to help you achieve those goals while concurrently protecting yourself. Our partnership lawyers will examine all aspects of your business and see to it that possible issues are addressed. We pride ourselves on providing accurate advice for your specific business needs.