Ohio Asset Protection Lawyer Reveals Top 5 Mistakes in Using a Limited Liability Company for Asset Protection
July 18th, 2012
In Ohio, asset protection lawyers often use a limited liability company (LLC) as part of an asset protection strategy. But an LLC must be structured correctly and specific requirements and ongoing procedures must be met if the LLC is to offer any asset protection at all. Most people don’t understand LLCs and how they work. They don’t understand that a LLC must be operated as an actual business or the assets it contains will not be protected from creditors or lawsuits. Because of this, people commonly form a limited liability company as part of their asset protection strategy but then make one or more common mistakes that render their LLC powerless to protect their assets. While the person creating the LLC is responsible for many of the actions required to keep the LLC viable, it is the responsibility of the Ohio asset protection lawyer assisting in forming the LLC to make sure the client understands what is required. The five mistakes listed below are the ones I see most frequently. Avoid these mistakes when using a limited liability company as part of your asset protection strategy.
Avoid These 5 Mistakes with Help from Your Ohio Asset Protection LawyerMistake #1: Thinking that filing articles of organization is all you need to do There is much more to creating an LLC than filing articles of organization. A viable LLC should also have:
- elected officers
- operating agreement adopted by its members
- checking account
- employer identification number if the LLC has employees