The Asset Protection Law Letter
A Service of Klueger & Stein, LLP


               THE ASSET PROTECTION LAW LETTER

The LLC Business Entity 
Still Preferred, Still Recommended

There has been a spike in the number of businesses converting to Limited Liability Companies (LLCs), or establishing businesses as LLCs right from the start. This is because LLCs offer business owners flexibility and advantages not present in more traditional C and S Corporations.

C Corporations and LLCs both offer their owners limited liability protection; however, C Corporations are subject to two levels of federal taxation:

  •      Corporate level tax 
  •      Tax on distributions (earnings and profits) to shareholders

S Corporations, just like LLCs, are not subject to double taxation and also offer limited liability protection. However, the LLC still provides flexibilities that are absent in S Corporations such as no limit on the number of shareholders, types of shareholders, classes of stock, and no requirement of annual meetings and minutes.

Because LLCs are not subject to corporate formality requirements, it is harder to pierce the corporate veil. Also, unlike corporate stock, LLC interests are not attachable.

It is possible to convert a C Corporation or an S Corporation into an LLC. Here is a simplified version on how the process works: 

Click Here to Read the Full Article


Upcoming Seminars 

Asset Protection Planning
by Jacob Stein on September 24, 2014
Location: CalCPA San Joaquin Chapter - Ripon, CA 
 
Asset Protection Planning
by Jacob Stein on October 08, 2014
Location: Rossdale CLE - Los Angeles, CA
 
Asset Protection Planning
by Jacob Stein on October 08, 2014
Location: Family Law Study Group - Los Angeles, CA
 
Asset Protection Planning 
by Jacob Stein on October 09, 2014
Location: Clark County Bar Association - Las Vegas, NV
 
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Robert F. KluegerJD, LLM 
Mr. Klueger is one of the very few private attorneys in America who has argued a tax case before the United States Supreme Court, [United States v. Brockamp], which resulted in a change in the tax law regarding tax refund claims filed by disabled taxpayers....


       
Jacob Stein, JD, LLM
Mr. Stein is one of California’s best known attorneys and AV rated by Martindale-Hubbell (highest possible rating). He teaches dozens of legal seminars each year on the subjects of asset protection and advanced tax planning....
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