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Rocco Beatrice asked:




The limited liability company (aka L.L.C. or LLC) is the strongest asset protection devise for your business replacing the sub chapter “S” corporation. The LLC offers limited liability to the owners of a business and, additionally, the limited liability company is approved in all 50 states.

The LLC is similar to a corporation and sometimes has been mistakenly referred as the limited liability corporation. In the LLC, the individuals are called members and the LLC is most advantageous to smaller companies with a smaller number of members. In cases where the LLC has only one member the LLC may be regarded as a disregarded entity whereby the sole member is viewed as the entity performing the operations of the LLC. This contrasts a corporation owned by a single individual whereby the corporation is viewed as the entity performing the operations.

The limited liability company with multiple members avoids double taxation because the members are partners for taxation purposes. The IRS Form 1065 and Schedule SE (i.e. Self-Employment Tax) are used with the LLC entity. For tax purposes, the LLC in a partnership formation reports its income and deductions via each members’ income tax return.

WHY CHOOSE THE LLC FOR ASSET PROTECTION?

Courts and clever predators with their contingent-fee lawyers have significantly eroded the benefits and protection of corporate entities, allowing for little or no asset protection against employees, shareholders, officers, or directors. The limited liability company has become the “entity of choice” for all new business structures. The sub chapter “S” corporation has now become the white elephant.

LIMITED LIABILITY COMPANY’S FINANCIAL BENEFIT

There is a significant financial benefit to establishing a limited liability company for your business. Your predatory creditor’s sole remedy is the “charging order.” Similar to partnerships, the charging order can only be against LLC member(s) and not the LLC. The charging order is obtained subsequent to your creditor obtaining a judgment against you for monetary damages and other frivolous charges. Your creditor cannot, and is precluded by law, to step into your shoes as an LLC member and take over the financial affairs of your LLC. This is, in and by itself, the limited liability company’s most significant financial benefit.

In all cases, after you plead with your creditor, “Please, please, please, do NOT place a charging order against me because it’ll have the most detrimental affect on how I deal with my existing clients, banks and other businesses,” your creditor will turn around and slap you with a charging order. What you creditor does not realize is that he just gave you a major gift. Thanks in largely due to the drafters of the Uniform Limited Partnership Act.

The charging order means that your creditor has a right to “all your capital distributions.” So when will you have a capital distribution to pay your creditor? The answer is never. You are allowed to take a salary, to joint venture, to borrow money from the limited liability company but you will never take a capital distribution wherein you will pay your creditor. You have just become your creditor’s and their contingent-fee, gold-digging lawyer’s worst nightmare.

LIMITED LIABILITY COMPANY TAX ADVANTAGE

The LLC has a significant tax advantage. Someone must pay the taxes so the IRS declares. According to the IRS, in revenue ruling (77-137) it states that someone must pay the taxes. Since the person holding the charging order will receive the “K-1″, he must pay the taxes on the income generated by the LLC even though your creditor never receives any actual cash from the business.

The creditor saddled by the charging order is treated as a substituted limited partner for tax purposes, thanks to the IRS, and will suffer the tax consequences without capacity to force payment, dissolution or distribution. Do you think that your creditor will want to settle? Please note the “K-1″ is the yearly income tax statement to be included in recipient’s taxable income for the year similar to your mutual fund’s form 1099.

The shocking news is that your creditor will be obligated to pay the taxes for you. Every 6 months, send your creditor a letter on how well your business is doing and that you want to make sure that he prepares himself to pay the taxes. At the end of the taxable year, you send your creditor a copy of an additional letter along with the K-1, addressed to the IRS, requesting an audit of your creditor because you want to be tax compliant and that you want to make sure that all taxes have been timely paid and are up-to-date. Do you still have doubts that your creditor will want to settle?

When you combine the limited liability company’s tax benefit and the protection of the charging order with a surefire asset protection system of an irrevocable trust such as the Ultra Trust you will receive a financial asset protection fortress against your creditors and other contingent-fee based lawyers. So the next time there are any pending frivolous lawsuits you can relax and sleep soundly at night knowing your business assets are well protected.

Jay Land asked:




How does a hydrogen fuel auto sound to you? No, I’m not referring to one of those expensive hybrids that you must get on a waiting list to receive 6 or 7 months later. Believe or not, there is an alternative fuel system that is available right now and you won’t have to purchase a new automobile.

With gas prices increasing by the day, and with no apparent end in sight, drivers are seriously looking for an alternative to gasoline. The answer to your woes may be closer than you think. Hydrogen fuel, or HHO gas can be created quickly and easily from any available water source. You may be asking why this technology isn’t being used on a mass scale, if it presents such a viable option to high gas prices.

Have you noticed that whenever you hear it touted on TV, the radio or in the newspapers, it is most often put in the context of some genius that have discovered a process beyond the reach of the average person. Or, the car industry will have you believe that technology has not advanced to the stage where hydrogen fuel can be produced in a safe and reliable manner.

Think about it, the oil industries, cartels, and automobile corporations have such a good thing going that they do not want anyone or anything to spoil their “profit” party.

News Flash! There are many thousands of people who are been taking advantage of this technology. What is great about this alternative fuel is that any car, truck, or SUV can be converted into a hydrogen fuel auto, truck or SUV. This can be done using normal parts and water from your kitchen sink.

Simply put, to run your vehicle on hydrogen, all you’ll need to do is install a couple of parts on the engine of your vehicle. Some of the basic parts include - a container (about the size of a quart size jar), a fuse, like the type you would find in any automobile, some electrical wire, and several other parts.

Yes, you can do the conversion yourself if you have the capability to handle a wrench and screwdriver. There are several excellent sites on the Internet that will provide you with easy to follow instructions and diagrams; you will be amazed at how easy it is to complete the task.

Here are several reasons why you should consider converting your car to a hydrogen fuel auto:

Your vehicle will be at least 40% (as high as 80%) more fuel-efficient. You will save $40 to $80 for every $100.00 you put in your tank. It works for both gasoline and diesel engines.

Because hydrogen is a clean fuel, harmful carbon emissions are eliminated. This, of course, protects the environment.

You will boost your engine’s horsepower.

Decrease the noise level of your engine.

Save money on vehicle’s maintenance expenses

You can take advantage of tax rebates from the IRS for converting your vehicle into an environmentally friendly auto.

You will prolong the life of the car’s engine.

This process is completely reversible and won’t void your warranty.

I strongly recommend that you do not take my word for it, but do yourself a favor and research the subject. Go to the websites and purchase the manual and see if it is something that will improve your lot. All of them offer a no questions ask, money-back guarantee. A hydrogen fuel auto is a sound alternative to being held hostage by the cartels and corporations.

It is up to you to take action.

Amy McDaniel asked:




A limited liability company agreement is one of the most important documents for a single member LLC to adopt for his or her business. There are several reasons why and there is one important reason why not having this agreement can be disastrous.

A common question is whether a single member LLC really needs an operating agreement? After all, that one person will be the only person who can decide on business matters, receive profit and loss allocations and accept distributions of LLC assets.

BENEFITS OF A LIMITED LIABILITY COMPANY AGREEMENT TO A SINGLE MEMBER

The most common purposes of a limited liability company agreement include issues of control, finance, fiduciary duties that appear more relevant to a multi-member LLC. However, operating agreements can provide owners of a single member LLC the same benefits.

It is essential that a single member acknowledge that his or her limited liability company is a legal entity and business vehicle separate and apart from himself or herself.

While the LLC laws do not impose a lot of formalities for operating an LLC, the legal entity still needs a set of operating and governance rules. One of the biggest mistakes a single member can make is forming an LLC and then ignoring it and not providing it with the standard and typical structures and maintenance required to operate an LLC.

The limited liability company agreement is the tool used for the owner to determine which rules should apply to the operations of the business and the document serves as a user manual for the single owner to consult when maintaining the LLC and making LLC decisions.

BIGGEST REASON FOR A SINGLE MEMBER LLC TO ADOPT A LIMITED LIABILITY COMPANY AGREEMENT

Because a single member LLC has only one owner, it is uniquely susceptible to a challenge by third parties when it comes to the limited liability of the single owner.

Third parties will argue the classic alter ego theory that the veil of protection should be pierced and the single owner should be personally liable for a business obligation because, in essence, the single member is really the true business party running and owning the business that has caused some damage or liability.

Because of this higher vulnerability, it is essential that the single member do what he or she can to succeed in defending this challenge.

By adopting a limited liability company agreement, you are underscoring this challenge because the very existence of an operating agreement evidences the distinctness and legal separation between the single member and the LLC.

This document shows the legal agreements between the member and the LLC as two separate persons and it provides the legal entity itself with its own set of governance and operational rules. It is strong support to show that the single member does and has been recognizing its business as a separate person and this is the essential foundation for limited liability protection.

The good news is that adopting an agreement for a single member LLC is much simpler than for multi-member businesses. There are no conflicts or matters to negotiate among several members.
It really just involves the single person thinking through the best way to operate the LLC business based on what the business entails and what third parties the business will interact with.

One way I recommend starting the process for preparing and adopting a limited liability company agreement is to first focus on what parties will be using it and need to review it. From there, you can be sure your final agreement addresses all the necessary matters.

Jay Carmichael asked:




If you currently own a business, or plan to change the structure of your business, you need to research the many possibilities you may have. Should you stick with a sole proprietor status or form a New Limited Liability company? What Limited Liability options do you have? Hopefully, this article will give you a brief birds’ eye view of your available options.

A Limited Company, also known as a Limited Liability Company, LLC, or Ltd. can be a very worthwhile business formation. Limited Companies by nature protect their investors by you guessed it, limiting their liability. There are two types of limited liability companies. One is a Public Limited Company or PLC and the second more common formation is a Private Limited Company which is commonly known as a Limited Company.

A Private Limited Company is a relatively inexpensive formation that is not riddled with as many legal hurdles as its public counterpart or some other business formations. For example, Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate. A Limited Liability Company will also often benefit from significant tax advantages.

Public Limited Companies can be listed on the Stock Exchange or the Unlisted Securities Market. A Public Limited Company will get you the financial attention you desire, but will also require more legal support that will raise the legal overhead cost in addition to requiring a larger more organized foundation. For example, A PLC must have at least two directors and a secretary where a Private Limited Company only requires one of each. Either choice will gain you respect from potential investors as Limited Companies as a whole are usually more complex and/or organized than other more simple alternatives like sole proprietorships. Another advantage to limited companies is they inherently get the advantage of the business operating as its own entity which means it will not only live indefinitely but in most cases your personal assets will be much more protected in the event something were to go wrong.