In the Forums we always see both new and experienced investors inquiring about entity structuring. Should they use LLCs, and if so, should they use multiple LLCs? The end goal is usually liability protection and anonymity, the latter of course being difficult to achieve.
I tend to find it somewhat disturbing that investors will go through the hassle of setting up an LLC to legitimize their business and protect their personal assets, yet they fail to invest time in learning how to operate the LLC. A lawyer that I refer my clients to told me that “A key reason LLCs’ asset protection veils are pierced is because the owner doesn’t treat the LLC like a business entity.” Read More