LLCs and Series LLCs

An LLC, or limited liability company, is owned by one or more members. Forming an LLC provides a variety of benefits, including the following:

• Limited Liability for Managers and Members (owners)

Simply put, this means that members are not personally liable. Additionally, forming an LLC prevents double taxation, which is common among other corporations such as C corporations. A Series LLC is a type of LLC that offers asset protection across all "series" within the LLC. Each series is protected from any liability that may arise from any of the other series. A holding company, on the other hand, is a company that segregates assets and minimizes weaknesses. Holding companies are used for oversight, supervision, and control of subsidiaries but not for day-to-day decisions.

Asset protection in Oswego is only possible if business owners engage the right Oswego estate planning attorney to protect their estate and assets. 

A Case for Asset Protection and Estate Planning

Every human being tend to have an estate. Your estate includes everything you own: be it your businesses, investments, your home or other form of real estate, furniture, a car, personal belongings, life insurance, savings, and checking accounts; just name it. We all have an estate, no matter how small or large, old or new. And one thing is certain—you can't take it with you when death calls.

That is where asset protection and estate planning come in.  

The prenuptial agreement is frequently known as a "prenup" because provides two individuals to enter into marriage a predictable agreement. A prenup is a legal contract, which includes provisions concerning property division, spousal maintenance, and other financial agreements in case of a divorce. The prenup is intended to protect asset protection in case of a divorce or separation, which will minimize the financial pain and drama typically caused by divorces.

In Illinois, prenuptial agreements are often considered for middle-aged to older couples or otherwise known as "gray divorce" couples. Prenuptial agreements provide clarity and define each person's roles and responsibilities in case of a divorce. The prenuptial agreement outlines each person's assets, liabilities, and division in case of a divorce. The prenuptial agreement also should define what is non-marital and marital property and define how retirement security, real estate, real estate investments, and other financial assets will be divided in case of a divorce.

Often, grey divorces will have adult children or minor children, which are close to the age of eighteen. The prenup is used to protect one's real estate or business holdings acquired before the marriage such as a closely held business or investment real estate. The prenuptial agreement provides an orderly process and transitions in case of marriage dissolution. Marital dissolutions cause emotional trauma and result in significant financial distress. Dissolutions of marriage often involve divorce attorneys litigating against one another driving up the legal fees and costs inflicted on the parties.

Asset protection is a legal specialty, which is a combination of financial, retirement, and lawsuit planning to set up legal barriers to protect one’s family and business assets. A recession is coming, and lawsuits, taxes, and liability concerns will increase, which will threaten people’s family, individual, and business’s economic security. 

The best asset protection occurs prior to any incident or potential lawsuit has arisen. Advanced planning is not fraud and sets one’s assets up in a manner that maximizes asset protection. Asset protection is combined with estate planning strategies to help families and individuals achieve financial security. Middle-aged couples and individuals are increasingly aware of retirement planning. Smart retirement planning consists of asset protection and estate planning (when the situation meets the customer’s needs). 

How to Protect Your Assets Against Liability Concerns?

This article will discuss how to protect your assets against liability concerns and what legal instruments you should use. This article will discuss five (5) strategies designed to protect one’s assets from liability concerns. The first legal concept is the use of holding and subsidiary companies, which segregate each company or LLC into a separate entity. 

A Limited Partnership company and LLC have similarities in operation, but they are quite different from each other. They are the two most common business entities in the US. 

For example, when it comes to taxation, LPs and LLCs have the freedom to incur pass-through taxation treatment. This means that each member (LLC) or partner (LP) is taxed on the personal profit gained from the company. LPs and LLCs are both exempt from federal income tax.