Family limited liability companies can be a convenient vehicle to hold and administer family investments. They offer significant benefits from both an estate planning and asset protection standpoint. Until recently, the entity of choice for family investments was a family limited partnership (often just called an FLP). While there is nothing wrong with an FLP, we are
Limited Liability Company
Ohio Appeals Court Affirms Basic LLC Protections
It is now well settled that a limited liability company insulates the owners from the debts of the company.
It is nevertheless reassuring when a court re-affirms basic LLC protections. In Dover Phila Heating v. SJS Restaurants 185 Ohio App.3d 107, 2009-Ohio-6187, the Ohio Court of Appeals for the Fifth Appellate District confirmed once again…
Asset Protection Strategies for Your Business
There are a number of relatively simple strategies an organization can use to provide significant protection for its assets.
1. Separate Entities. Consider creating a separate entity (possibly a limited liability company) to hold real estate, machinery, or assets relating to a new line of business. If there were a future judgment against the corporation…
LLC Better than a Corporation for Asset Protection Purposes
A limited liability company (LLC) will generally provide better asset protection to its owner than a corporation.
A limited liability company (“LLC”) is a hybrid type of legal entity that has some characteristics of a corporation and some characteristics of a partnership. Owners of an LLC are called members; they can elect to receive pass through tax…
Piercing the Corporate Veil
Corporations and limited liability companies (LLCs) provide significant liability protection to their owners. Shareholders of corporations and members of limited liability companies generally are not responsible for debts of the corporation or LLC. A recent Ohio case, however, serves as a reminder that creditors may attempt to "pierce the corporate veil" and hold an owner…