A limited liability company or LLC is one of the best ways you can protect real estate and other assets. It can also be a tax-efficient way to own a business.
The attorneys at Pursley McNamara & Flint create limited liability companies for individuals and business owners in Sugar Land, Missouri City and other communities in Fort Bend County. We offer a free initial consultation to discuss your asset protection goals.
Protecting Yourself From Liability
When you own an asset in your personal name, you are potentially placing that asset — and everything else you own — at risk.
Suppose you own rental property under your personal name. If someone injures himself or herself on your property, they could sue you personally. Similarly, if you are sued, creditors could take your rental property to pay off your personal debts.
By setting up an asset as a limited liability company or LLC, the asset is not owned by you. As a result, you are shielded from personal liability. No form of protection is perfect, so it’s important to seek legal advice to understand how you are protected by the LLC shield.
If you own multiple assets such as real estate, you may want to consider setting up each asset as a limited liability corporation. By doing so, you can shield one asset from the results of another.
Tax Advantages of LLCs
LLCs also provide tax advantages over some forms of business ownership, such as C corporations. Profits from C corporations may be taxed twice: once as a corporation and once when it is passed to a shareholder. Profits from LLCs can be passed to owners before being taxed.
For More Information About LLCs and Asset Protection
For legal advice about LLCs and asset protection, call our lawyers at (713) 766-4326. You will receive our prompt attention.