Ohio asset protection lawyers frequently use limited liability companies (LLC’s) to distance a client’s assets from their businesses so the assets are less vulnerable to business risks and businesses are less vulnerable to the client’s personal liability.
When it comes to asset protection in Ohio, corporate structures of some sort are frequently used to provide liability protection. Of all the corporate structures available, the LLC provides the highest level of protection while providing the tax advantages of a sole proprietorship or partnership.
Physicians, home builders, shop owners, farms and most any type of business owner faces exposure to lawsuits and other situations that can put the business at risk. In these situations, when there isn’t enough insurance or not enough business assets to pay the debt, creditors go after the business owner’s assets. LLC’s provide a lot of asset protection for Ohio business owners and can prevent a business creditor or lawsuit plaintiff from gaining access to the owner’s personal assets.
When a business is incorporated as an LLC, the individual is no longer the owner. Instead, they become a shareholder, either owning all the shares of the company or sharing them with other shareholders. The corporate structure separates the business and the individual. However, when properly structured by an Ohio asset protection lawyer, the individual can still retain control of business operations.
An individual’s income-generating assets, including real estate or investments, can also be protected by placing them in an LLC. This is particularly useful for rental properties and other real estate because it protects the individual and their assets from liability arising from accidents on the property.
As an Ohio asset protection lawyer, I recommend placing any sort of business or income-generating assets into an LLC in order to shield them from personal liability. If an individual is sued or a judgment is rendered against them, any real estate, investments or business assets titled in that individual’s name could potentially be claimed to pay the debt. But if the business or assets are in a LLC, they are not owned by the individual and therefore cannot be claimed by the individual’s personal creditors.
Of course, an individual’s creditors can lay claim to the individual’s interest in the business and any disbursements from the business can be claimed to pay the debt. But creditors cannot compel the incorporated business to make disbursements and therefore are unlikely to get paid. Even this vulnerability can be eliminated if the individual places his business interests in a trust. This combination creates one of the highest levels of asset protection Ohio and other states have to offer.
Gudorf Law Group, LLC, can help you structure a limited liability company for your business or income-generating assets. Call our Ohio asset protection lawyer’s office at 1-877-483-6730 to schedule a free consultation.