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Approved in all 50 states. The Limited Liability Company (LLC) is the strongest asset protection devise for your business, replacing the Sub "S."
Significant financial benefit: Your predator creditor's sole remedy is the "Charging Order." Similar to partnerships, the Charging Order can only be against LLC, member(s) and not the LLC. The Charging Order is obtained subsequent to your creditor obtaining a "judgment" against you for money damages and other frivolous charges. Your creditor cannot, and is precluded by law, to step into your shoes as an LLC member and take-over the financial affairs of your LLC. This, in and by itself is a significant financial benefit. In all cases, after you plead with your creditor, please, please, please, DO NOT put a Charging Order against me, because it will have a most detrimental affect on how I deal with my clients, banks, and other businesses, your creditor will slap on a Charging Order. (without realizing: your creditor just gave you a major gift, thank you! drafters of the Uniform Limited Partnership Act.) The "Charging Order" means that your creditor has a right to "all your capital distributions." When will you have a capital distribution?? Answer: NEVER. You can take salary, joint venture, borrow money, but you will NEVER take a capital distribution. You have just become your creditor's and his contingent-fee gold digging lawyer's worst nightmare. Significant tax advantage: SOMEONE MUST PAY THE TAXES. The IRS, in Revenue Ruling (77-137), stated that someone must pay the taxes. Since the person holding the "Charging Order" will receive the "K-I", he must pay the taxes on the income generated by the LLC, even though your creditor never receives any actual cash from the business. The judgment creditor saddled by the charging order is treated as a substituted limited partner for tax purposes (thank you IRS) and will suffer the tax consequences without capacity to force payment, dissolution, or distribution. Do you think that your creditor will want to settle?? Note: the "K-1" is the yearly income tax statement, to be included in recipient's taxable income for the year, similar to your mutual fund's form 1099. Shocking news: YOUR CREDITOR IS OBLIGATED TO PAY THE TAXES FOR YOU. Every 6 months, send your creditor a letter on how well your business is doing, and that you want to make sure that he prepares himself to pay the taxes. At the end of the taxable year, you send your creditor a copy of an additional letter along with the K-1, addressed to the IRS, requesting an audit of your creditor because you want to be tax compliant and that you want to make sure that all taxes have been timely paid and are up-to-date. Do you still have doubts that your creditor will want to settle?? IS THE LLC FOR YOU? The LLC when combined with an ULTRA TRUST® is a financial asset protection fortress. We have prepared a special report. Become judgment proof, preserve your wealth, order your LLC report, send US$24.50 to: |
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