Nevada Limited Liability Company
A Nevada Limited Liability Company (LLC) is an effective asset protection tool if properly formed and implemented. Forming an LLC to hold business interests, such as rental or investment property, separates your personal assets from your business assets. This may protect your business assets from your personal obligations, and protect your personal assets from your business obligations.
Forming an LLC starts with filing the necessary initial documents with the Secretary of State, but it does not end there. To realize the maximum asset protection provided by a Nevada LLC it is imperative that all formalities of structuring and maintaining an LLC are in place. After all, if you do not treat your LLC as a business, chances are the court will not treat it as a business either. This could result in “piercing the corporate veil” and the court treating your LLC as an “alter ego” instead of a viable business.
Nevada Series Limited Liability Company
A Nevada Series LLC is a unique business entity that allows separation of assets into individual sub-entities or series within the master LLC. The Nevada Series LLC is a viable and practical alternative to forming an LLC for each asset. For example, if you have multiple rental properties and want to protect each property from the liability of the others, one option is to form an LLC for each property. Each LLC must be renewed each year resulting in paying the Secretary of State multiple renewal fees.
With a Nevada Series LLC only the master LLC is renewed each year. Each of the series within the master LLC is included in the master LLC; therefore no further renewal fees are required. However, you get the same asset protection as having three separate LLCs. The Series LLC must be properly formed and meet all the legal requirements in order to provide maximum asset protection. The Nevada Series LLC is a practical and economical business entity in the right circumstance. But the Series LLC is not the right fit for every business.
To find out if a Nevada LLC or Nevada Series LLC is the right choice to protect your assets call Barfield Law and speak to Millie Barfield, an experience estate planning attorney.
