Limited Liability Companies – Actions Speak Louder Than Words

Because of its asset protection and tax advantages, the limited liability company has become a popular choice for form of entity. While it is relatively easy to form a limited liability company, it is important to note that various “post-formation” action is necessary to derive the intended benefits from the limited liability company. If you want to maximize the asset protection from your limited liability company, the Orix case suggests that California is not a favorable jurisdiction to use; other states, such as Delaware and Nevada, offer a better alternative on the “charging order/foreclosure” issue.

In the Matter of the CES 2007 Trust – A Victory for the Delaware Domestic Asset Protection Trust

Among the many tools available for persons seeking asset protection is the “domestic asset protection trust” (the “DAPT”). Broadly speaking, DAPTs are U.S. domestic trusts established by a grantor, who generally retains certain rights over the trust, but wants the assets of the trust to be protected from creditors.

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WHY ILLINOIS BUSINESSES SHOULD CONSIDER NOT USING ILLINOIS ENTITIES

Simplicity can be advantageous in making decisions concerning your business. On the important decision of choice of entity, based on simplicity, it may seem appropriate to use an Illinois entity to operate an Illinois business. By using an entity formed in a different state than Illinois to operate an Illinois entity, there will be additional complexity from having to comply with the legal requirements of Illinois and another state. However, for some Illinois businesses, this complexity may be overridden by certain benefits from using non-Illinois entities.

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The Advantages Of Protected Series Over Registered Series In Delaware Series Limited Liability Companies

For many years, Delaware has been a leading state in which to achieve asset protection. Besides its broad recognition of tenancy by entirety and “pro-debtor” charging order law, Delaware was one of the first states to authorize the use of series limited liability companies.