The Limited Liability Company (“LLC”) is an excellent business entity to use for protecting rental or investment real estate properties. However, using such entities in an Asset Protection Plan should only be done by experienced Asset Protection Professionals. The Limited Liability Company is typically used as a compliment to the foundation of an Asset Protection Plan, which oftentimes consists of a general partner LLC and a limited partnership.
Rental real estate assets are particularly important to protect against creditors because they are referred to as “liability assets.” Since third parties are occupying such rental real estate (for your business purposes), there is an inherent liability aspect tied to such ownership and the operation of a rental business. It is also prudent, in many cases, to use a management Limited Liability Company entity to manage such rental real estate activities. The more removed you are from the rental real estate business (with regard to using layering Asset Protection techniques) the less liability you put yourself at risk for personally. Therefore, it is also smart to use holding company entities as the owners of the LLC’s which own the rental real estate. Determining which type of holding company structure to use is entirely dependent on a particular individual’s assets. Further, for individuals with a particularly high net worth, international LLC’s can complement the Asset Protection Plan and provide further insulation from liability producing activities.
Contact The Presser Law Firm, P.A. to obtain a complimentary consultation on Asset Protection, estate planning and/or business law. Our attorneys are knowledgeable in estate planning, Asset Protection and business law. Call us today – (561) 953 1050 or e-mail us at: info@assetprotectionattorneys.com.