Category Archives: Business law
SHOULD YOUR LLC HAVE AN OPERATING AGREEMENT?
Many people form limited liability companies (“LLCs”) for the purpose of shielding their personal assets from the claims of certain creditors. For example, by placing rental properties in one or more LLCs and conducting all of the activities relating to the rental properties through the LLC, creditors of the LLC can make a claim against… Read More »
THE US SUPREME COURT RULES THAT INHERITED IRAS ARE NOT PROTECTED IN BANKRUPTCY, HOWEVER, STATE LAW MAY OVERRULE THAT!
When an individual files for bankruptcy, the Federal Bankruptcy Code permits the debtor to exclude certain types of assets from the “bankruptcy estate” and thus protect them from his or her creditors. One of the types of assets excluded from the estate are “retirement funds” (11 U.S.C. x 522(b)(3)(C)). On June 12, the US Supreme… Read More »
Series LLCs – Better Asset Protection?
If you own several income producing properties or businesses, then lawyers typically recommend placing each property and/or business in a separate legal entity such as a limited liability company (“LLC”) so that creditors of one entity will not have access to the assets of any other entity or the personal assets of the owner. A… Read More »
Use of LLCs in Estate Planning & Small Business Planning
Limited liability companies (“LLCs”) offer a flexible vehicle for families and small business owners to facilitate the transfer of property among family members and to manage property within families over many generations. An LLC is a corporation established under state law that offers the flexibility of a partnership form, including an option to elect “pass… Read More »