LLC Asset Protection Strategies: Everything You Need To Know
LLC asset protection strategies are designed to shield the assets of your LLC from judgments and lawsuits as well as unforeseen accidents and circumstances.3 min read
LLC asset protection strategies are designed to shield the assets of your limited liability company from judgments and lawsuits as well as unforeseen accidents and circumstances. These can include financial plans and legal tools, such as certain business entities and trusts. Protecting your assets assists with estate planning, achieving financial goals, and preserving the viability of your business.
Limited Liability Companies
LLCs are often established as a vehicle to protect assets. The statutes that govern this business entity prevent creditors for seizing the business or its assets. Instead, the creditor will receive a charging order, which entitles them to LLC distributions. However, these are not enforceable and are subject to income tax when they are received. The states that offer the highest level of asset protection for LLCs include Delaware, Nevada, and Wyoming.0px;" class="adsbygoogle">