WHAT IS AN LLC?
An LLC is a form of business/investment entity not unlike the limited partnership and is similar to the real estate or business operating limited partnerships with which many are familiar. However, there is one important difference – all owners of an LLC, called members, are protected from liability caused by the LLC’s business/investment activities.
Management of the LLC can be left to all members, or it can be concentrated with one or more select members. Restrictions can be placed on the sale or transferability of member interests. These features are much like the Family Limited Partnership. They make the LLC as valuable planning tool not only for asset protection purposes but for estate planning and estate taxation purposes as well. (For more information on the FLP as a planning tool, call The Zimmer Law Firm for a copy of our report on the FLP. Learn more by downloading!