Posted by Rich on February 26, 2005 at 23:54:08:
What comments are you looking for? A whole book can be written discussing the scenarios you’ve mentioned.
FYI - my LLC has my individual trust and my wife’s individual trust as members with me acting as manager.
Rich
Seen in Garrett Sutton’s Book - Posted by Paul Welborn,Jr.
Posted by Paul Welborn,Jr. on February 26, 2005 at 20:57:54:
Or some similar title. Lets say Joe has worked hard and has his own forklift business. It has taken him some time to amass what he has but now he would like asset protection. 2 scenarios. (1) Joe gets an LLC and calls it I guess Podunk LLC and has its own EIN. The LLC for all purposes is its own individual. Joe gives 60% of his business to the LLC he is now Minority shareholder. Even though he may technically have control of the corporation. It is still separate and no one makes the connection. A charge order comes along. The beauty of charge orders is a vote must be taken. The board consisting of Joe and his interests must by law vote to “disperse” the funds. Who in their right mind would. Scenario. (2) Joe has the same business. He has two minor children. Until they are 18 He is legal guardian and decision maker care giver and head of household for those children. He gives them 45% each leaving him with 10% however, as minors he must make their decisions. He of course will not allow this because it is if nothing else in the interest of the children.
Scenario (3) Say you don’t have children. Joe forms an LLC with a TRUST as member. This affectively makes the LLC a multi member entity. Therefore, You put the property in the LLC and the TRust as well splitting up the interest but leaving Joe with control at an Arms length. Someone comment.