LLC Myths Busted

I love that show with the geeks that use science to prove of disprove myths. As a card carrying geek myself, it’s fun to watch what is and isn’t true – common perception versus the physics. The same can be seen in the asset protection arena.

The concept of “asset protection” ranks, to me, almost as important as tax planning in our wealth accumulation plan. Bad things do happen that are outside our control, and how we account for the random bad event like a slip and fall accident can make a major difference in our final score in the wealth game. As always, consult your own lawyer before acting on my opinions.

The Unseen Physics that will Come Into Play in this Field are

  1. The desire to encourage risk taking by allowing limited liability. Ever since the British East India Tea Company was formed in 1600 the business alter ego has served a vital part of innovation. If I can set my level of comfort without fear of losing everything – it’s a huge physiological difference, right?
  2. The counter force is most often found in a personal or economic injury cases. If our property was negligently maintained and it resulted in harm justice dictates making the person whole as possible.

So with those to forces acting against each other it begs the question: “Is my asset protection plan effective?” To that end, I wanted to bust the myths associated in this arena. If you take thees into consideration you will be armed and ready for all outcomes.

1.) I’m Set up with an Entity, Therefore I am Protected

This one is huge. Most people begin with the idea, “Hey, I’ll just got to LegalZoom or RocketLawyer, get my LLC and am I set!” …read more