When it comes to forming an LLC, there are important issues to consider. You need to pick the proper jurisdiction for your LLC. Just because you own property in Kansas does not mean you need to use a Kansas LLC. You can pick any jurisdiction for your LLC and some states have more robust asset protection provisions than others. It’s important to understand the different state asset protection laws and choose wisely. The operating agreement of an LLC is an important document to understand. This document lays out how the business will be managed. Not all states require an
operating agreement, but in some cases if you don’t create one you default to the off- the-shelf operating agreement and this is not always in your best interest. Also, the language that goes into the operating agreement should be precise and include asset protection provisions. Many people make the mistake of adding language and then not following what they laid out. Then when there is a creditor attack, the operating agreement is a point of weakness.
Treat your property like a business and put the proper legal structure in place.
Bradley Barth, Esq. Partner BarthCalderon, LLP (714) 704-4828 ext. 114 brad@barthattorneys.com
ASSET PROTECTI ON I S BEST DONE
WHEN THE SEAS ARE CALM.
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