Tag Archives: limited

A Family Limited Partnership Can Satisfy Multiple Objectives

When you are devising a financial plan as a small business owner, you should consider the importance of asset protection. There are always going to be individuals who look for targets in this litigious society, and you have to take the appropriate steps if you want to make sure that your assets are protected from litigants. With this in mind, let s look at the value of family limited partnerships. Family Limited Partnerships Of course, anyone can be sued, but people who are involved in certain businesses are particularly vulnerable. For example, consider the situation that a landlord would be in. Tenants and visitors could potentially get injured on rented property, and this would be an ongoing possibility. Doctors are also quite vulnerable to legal actions. They are viewed as deep pocket targets by opportunistic types, and they are inherently exposed to malpractice actions. A family limited partnership could potentially provide an asset protection solution. The person who creates the


Why Is a Living Trust Better Than a Will?

A last will is a very limited estate planning device, and there are also some drawbacks that go along with the utilization of a last will. First, let’s look at the drawbacks. Time Consumption and Money Lost You probably would like your loved ones to receive their inheritances in a timely manner after you are gone. This will not happen if you use a last will to facilitate the distribution of your personally held property. When you use a will as your asset transfer vehicle, you name an executor when you create the document. This is the person who will handle the business of the estate after your passing. The executor cannot follow your instructions and distribute inheritances independently. Under the laws of the state of Connecticut, the executor would be required to admit the will to probate. During the probate process, the court would supervise the administration of the estate. This process can consume a great deal of time, and the inheritors that are named in a last will must wait

What Is a Limited Liability Company?

If you want your business to be successful, you must put forth a great deal of effort. It takes a great business plan, a strong work ethic, and a good bit of talent to become a successful businessperson. Because you worked so hard for your success, you clearly want to make sure that you protect your personal resources. This can sometimes be done through the creation of a limited liability company. A limited liability company gives you the best of both worlds to a certain extent. You enjoy the personal asset protection that would be afforded to a corporation, but you can take advantage of flow-through taxation. When your business entity is a limited liability company, your personal assets are protected from the actions of the business. If someone wanted to sue the limited liability company, only the company s assets would be in play. However, even though you have this level of asset protection, you can still claim the profits and losses from a limited liability company on your personal