3 Steps to Planning Your Next LLC

This post is in: Business

10-27-1Using Limited Liability Companies (LLCs) to help you protect your assets and save your tax dollars is nothing new. Accountants, attorneys, financial planners, tax strategists and more have been telling you about one method or another for years now.

But even within this field things have changed. Ideas that were once regarded as tried and true have been surpassed by new concepts. Legal challenges have made some LLC structures less appealing and less safe. Changes to state taxation have made some multiple-structure plans expensive. New LLC structures have been introduced and are quickly gaining acceptance.

That doesn’t mean that all old planning should be discarded. But we do invite you to take a look at the new alternatives and see if something works for you, accomplishing the same (or better) results, for less expense and without sacrificing any asset protection. It may be time for you to take your tax and asset planning to the next level.

The 3 Goals to Plan Around

No matter what the business operations will be, when looking at planning a business structure, there are three things to always keep in mind:

  1. What structure or structures can you use to give you maximum flexibility to cope with changing laws and economic conditions;
  2. What structure or structures can you use to give you the best asset protection; and
  3. What structure or structures can you use to maximize your tax savings.

Why an LLC has Become The Choice for Business

When LLCs first hit the legal radar back in 1973, they were primarily used for asset protection. But in today’s world, that has expanded to encompass just about any type of business you can think of.

The reasons LLCs are so highly-regarded boils down to two things:

  1. Superior asset protection; and
  2. Tax flexibility

In most (but not all) cases, an LLC will give additional legal protections that aren’t available to corporations. And, from a tax point of view, there’s nothing quite like an LLC. It literally is a tax chameleon, and can choose which of 4 taxation types best fits the business and its income. No other structure comes close on that front.

But knowing that you want to set up an LLC and getting it set up the right way are two different things. That’s why we created the 2011 Operation Guide for LLCs. It walks you through the entire process, step by step, and explains the importance of each step in the planning process.

Plus, it also gives you practical paperwork to go along with the information. For example, using LLCs that make S or C Corporation elections is one of the smartest things you can do as an active business owner in today’s world. Not only are you getting the great tax advantages that S or C taxation offers active businesses, you are also getting the unparalleled asset protection that LLCs offer. But, traditionally LLCs have always used default passive taxation, and 99% of the Operating Agreements you’ll find on the web today use that passive taxation language. That won’t work for you – in fact, the wrong language could even potentially expose you to liability in some situations.

However, with the 2011 Operation Guide for LLCs, you’ll get agreement templates for LLCs with both S and C Corporation, with the proper language included. Plus you’ll get standard language, language for real estate investors, and more.

We’re featuring the 2011 Operation Guide for LLCs for sale this week at www.USTaxAid.com. We’ve bundled it together with two other practical, hands-on products, the 2011 Operation Guide for Your Corporation, and the 60 Minute Handbook. Each of these products comes with an explanatory eBook, and dozens of forms for you to customize and tailor to your exact needs. It’s a limited time offer, so get your package today!

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