One very big deal for anyone who owns property or a business is the use of Limited Liability Companies (LLC’s) for asset protection purposes. We live in a world today where if life throws you a curveball, you will probably get sued. Think car accident, bad real estate transaction, IRS attack, employee/tenant lawsuit, attack on you from a personal guarantee you signed, liabilities coming from your business partner’s activities, and on and on and on.
People use LLC’s for protection. That’s a given. But there is a common mistake people (and advisors) make when setting up multiple LLC’s that can lead to LESS PROTECTION. It has to do with multi-jurisdictional planning. This strategy is easy to understand yet so many people fail to utilize it and then they get whacked. Why would you spend the time to set up an LLC to protect your assets, then make this simple mistake that could have dire consequences?
Our estate and asset protection expert Brad Barth walks you through the strategy in this week’s Wealth Protector video.0