When you are going through and planning your estate, you might be wondering what are some of the best ways to protect your personal property. Asset protection is one of the most highly valued parts of a good estate plan. One of the best ways to protect your personal property is to create LLCs. Here is what you need to know about personal LLCs.
What Is A LLC?
An LLC is a limited liability company. This means that whoever runs the LLC has a lot of benefits from being part of the LLC, especially when it comes to taxation and personal property. For instance, you can create an LLC for a family that acts as a family business. Then you can put your house, assets, and other valuables right into the LLC. Then if you get sued for some reason, they generally won't be able to touch what is in the LLC because it belongs to a corporation, albeit your corporation.
What Benefits Does An LLC Provide?
As previously mentioned one of the greatest benefits to an LLC is asset protection. This means that creditors who come against you cannot come at the property in the LLC, unless the LLC is being sued. Otherwise, anything that is in the LLC is protected.
Second, there are tax benefits to having an LLC. When you file taxes in an LLC you don't have to pay normal corporation taxes. This is because the LLC is seen as less formal. This is a major benefit to some people who want to try and save money on their taxes each year.
How Do I Create An LLC?
One of the easiest ways to create an LLC is to talk to an attorney. Most estate planning attorneys should be able to create the LLC for you right then and there. It usually only takes a couple days or so to get everything put together.
Generally, the fees associated with an LLC are not very high. There are some filing fees associated with it, and then a fee that the lawyer will charge for labor. However, when you factor in all the benefits of what an LLC can provide it far outweighs the amount of money that you will spend in the initial cost of creating one.
For these reasons and many more, people are choosing to create LLCs to protect their personal property. If you are interested, talk to an attorney like Auton-Beck Betty A Professional Law Corporation about your options.