Business entities can be used not just in a traditional sense to run day-to-day operations, but also as an effective asset protection vehicle to create an additional layer of security for your personal and business assets or to ensure your wealth is passed on to your family outside of your personal estate. The simplest use for a business entity in the estate planning context is to create an LLC to hold your real estate properties, therefore limiting the potential for any claims against your personal estate.
On the more complex side, using holding and operating companies is an asset protection planning strategy that helps limit various liability risks in your business structure. Having an operating entity that does not own any vulnerable assets and a holding company that owns the business assets helps you eliminate, or at the very least substantially limit, your exposure to business and personal debts.
When you choose the business entity structure to suit your needs, you have to consider multiple estate planning and tax considerations. You have to carefully select what entities will be included in your plan, how will they be funded, and how much equity and debt each company will carry.
We can provide guidance, advice, and support for all these needs — helping you develop a legally compliant strategy while maximizing the protection of your wealth and your future opportunities for growth.