If it is viewed in its proper context, legacy planning is a long-term process. There are individuals who go through life strictly and exclusively concerned with their own ability to meet their expenses up until the time they pass away. These people are not concerned with what they are going to be leaving to their loved ones if anything. Others take a different approach and set very specific legacy goals. To meet these objectives they have to adhere to a holistic plan that impacts their ongoing behavior.
If you are carefully crafting your legacy it is important to do everything possible to protect your assets. One of the best ways to build wealth is to get involved in successful business ventures, but of course there are certain risks involved as well. You don’t want to put your assets in harm’s way so you have to be careful about the way that you create the business entity.
A lot of people will utilize limited liability companies in an effort to protect assets when they are entering into a business venture on their own or with a limited number of others. These entities are sort of like a hybrid between a corporation and a sole proprietorship or partnership. The value lies in the fact that the owners of the LLC, called “members,” can’t be held personally liable for the actions of a limited liability company.
There are limits to the asset protection that limited liability corporations provide, but there are many benefits as well. If you are interested in exploring the matter in-depth, the logical first step would be to get in touch with an experienced financial planning attorney to arrange for an informative consultation.