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ASSET PROTECTION LIMITED LIABILITY COMPANIES
(con’t)
There are no major differences in
the federal income tax treatment of LLC’s and limited partnerships. The principal advantage of the LLC, the
limited partnership, the limited liability protection afforded all LLC members
and managers. Limited partnerships are
required to have one or more general partners, who are personally liable for
partnership debts and obligations. The
LLC affords limited liability protection to its members regardless of the
extent to which they participate in management and control of the LLC
business affairs. A similar result
might be obtained by use of a limited partnership with a corporate general
partner controlled by the limited partners. If the IRS continues to ease its
positions concerning free transferability and continuity of life, and if
states continue to adopt LLC statutes, these constraints will diminish or
dissolve, and the LLC will become the entity of choice for more transactions. A very effective and useful Asset Protection vehicle would entail the use of a LLC. The specific arrangement would depend on your particular circumstances, business activity, and the type of assets owned. If you are engaged in any business or if you own property, we recommend that you take necessary steps to arrange your affairs in order to maximize the income tax, estate planning and lawsuit protection techniques currently available. |
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F.
Darrell Lindsey State
Approved Captive Manager |
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BACK – USE ARROW TO PRINT USE PRINT PREVIEW |
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