FAMILY OWNED LLC's

One of the more common tools utilized by asset protection lawyers is the Limited Liability Company (“LLC”). As suggested by its name, this entity offers liability protection to its Members, including superior insulation from a piercing of the corporate veil than afforded by a corporation. When those involved in the asset protection plan are members of a family, a more particular LLC can be utilized, the Family Owned LLC (“FLLC”). The FLLC is not only a means to protect family assets, but can also facilitate estate-planning objectives.

Once the Members and Managers of the newly created FLLC are established, the entity is typically funded using of an asset transfer. An FLLC is owned by its “Members,” whil...

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