asset protection is about making sure that – even if you lose a lawsuit – you still have a meaningful measure of control over if, when, and how much you pay to make that suit go away. Some formed in accordance with the laws of the United States or certain states give you nearly total control of such settlements. Unless you’re willing to take your chances on a coin flip, you need a better tool than LLCs and corporations can provide.
might have been led to believe, the asset protection inadequacies of LLCs and corporations for entities that are owned by one or two people or by members of a single family, are functionally the same whether you have one LLC that owns ten properties or ten LLCs that each own one property. Appropriate insurance is a part of the answer, for sure. Just remember that punitive damages are often awarded to successful plaintiffs if actual damages are awarded first. Punitive
damages of 3-4 times the actual damages are permitted in most states (some allow even more), and, in many states (including CA, FL, IL, NJ, NY, PA and others), it is illegal for punitive damages to be covered by insurance. For many informed property owners, highly specialized trusts offer real, “bullet-proof” answers to their asset protection concerns. These trusts are interpreted and enforced under commercial codes as contracts and are drafted purposefully to
And no matter what you
LLCS ARE NOT I NTENDED TO SH I ELD MEMBERS OR MANAGERS FROM L I AB I L ITY FOR PERSONAL NEGL I GENCE
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