LLC Attorney Orange County, CA
LIMITED LIABILITY COMPANIES
A limited liability company (LLC) is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. LLC owners report business profits or losses on their personal income tax returns; the LLC itself is not a separate taxable entity. Like owners of a corporation, however, all LLC owners are protected from personal liability for business debts and claims — a feature known as “limited liability.” This means that if the business owes money or faces a lawsuit, only the assets of the business itself are at risk. Creditors usually can’t reach the personal assets of the LLC owners, such as a house or car. (Both LLC owners and corporate shareholders can lose this protection by acting illegally, unethically, or irresponsibly.)
It is imperative to establish this entity BEFORE you are involved in a lawsuit or other action against you regarding the underlying asset or property. In addition, if you have more than one entity to protect (e.g. two or three rental properties), it is best to establish an LLC for each of them, as separating them from each other provides much greater asset and liability protection. Our Orange County LLC attorney can help you form, organize, and represent limited liability companies in California.
UMBRELLA INSURANCE POLICIES
Finally, one of the least expensive methods of providing asset protection is known as an umbrella policy. Although this is a service we do not provide, we believe it is useful for you to understand the benefits. An umbrella policy is extra liability insurance which is designed to help protect you from major claims and lawsuits, by providing additional liability coverage above the limits of your homeowners, auto and boat insurance policies. For example, you may purchase from your property and casualty agent, one or two million dollars in additional protection on all underlying policies, at a very reasonable cost. In our very litigious society, it is certainly something you may want to consider.
Please be advised that the information on this site is not meant to be construed as legal advice. If you need legal advice, or for more information about Orange County Asset Protection and Limited Liability Company, please contact our office at (562) 594-4200 for a FREE 30-minute consultation!