Limited Liability Companies are easy to set up and have many uses. The main benefit of a properly structured and maintained LLC is that it limits your personal liability. You can use an LLC to:
To operate a business: Instead of operating a sole-proprietorship where your personal assets may be at stake, set up an LLC. You are not taxed any differently and the operation of your business will likely not change.
To hold real property: An LLC can own property in its own name as oppose to your name and those of your business partners. The operating agreement of the LLC can determine how the property is managed and sold.
To hold equipment: An LLC can also hold title to equipment. You can have one LLC that is your construction business and another LLC that owns your construction equipment that you lease it to. This provides you an additional layer of liability protection.
To hold life insurance: having an LLC in which the insured does not have a controlling interest hold a policy life insurance may enable benefits payable under the policy to be excluded from the gross estate of the insured member.
For estate planning services: holding assets in an LLC can offer protection from potential creditors and could lower administrative costs.
Legal Disclaimer: The information on this page does not constitute legal advice and should not be relied upon as each situation is fact specific and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. The information on this page is solely for the purpose of legal education and is intended to only provide general information about the matters stated therein. The information on this page should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area of the matters stated therein. No attorney-client relationship is formed without an actual agreement confirmed in writing. I am licensed only in Washington and Oregon.