Aurora Real Estate Investor Lawyers: Business Structure and Asset Protection Strategies

 Posted on March 07, 2023 in Real Estate

Gateville Law Firm provides advanced business structure planning strategies for real estate investors, landlords, and commercial property owners to maximize asset protection. One of the most popular business entities for such individuals is a limited liability company or an "LLC." The LLC provides flexibility and limited liability protection for business owners and investors. It limits business creditors' reach to the LLC's assets rather than its owners' personal assets.

Plaintiff's lawyers understand the benefits of an LLC's limited liability protection. They often use the Illinois Consumer Fraud and Deceptive Business Practices Act to go after a business owner's assets in case of a judgment. This makes it crucial for business owners and investors to set up an LLC and incorporate their business or real estate holdings. Combining their business holdings and real estate investments makes it more difficult for Plaintiff's lawyers to collect on their judgments.

With a pending economic downturn and recession, lawsuits generally increase during economic downturns because individuals and business owners face distressed financial times. These difficult times make asset protection and liability protection methods increasingly important. A business owner's interest in real estate or property ownership should be owned by a business entity such as an LLC or Limited Partnership. This business incorporation provides further liability protection in case of a lawsuit.

Additionally, combining land trust ownership with an LLC as the beneficial interest holder makes it much more challenging to penetrate one's assets. The strategy is to limit liens and judgments from being placed on the property in the first place. The LLC provides limited liability protection, while the land trust includes protection against liens being placed on the property. A lien can be appropriately placed on real estate with just an LLC.

Two Forms of LLCs in Boulder Hill and Oswego, Illinois

There are two types of LLCs in Illinois. The two types are manager-managed LLCs and member-managed LLCs. The owners of the LLC manage a member-managed LLC. An owner of an LLC is called a "member." The second type of LLC is a manager-managed LLC, which the managers of the LLC govern. The members or owners of the LLC appoint the managers. The members cannot bind the LLC in a manager-managed LLC.

Gateville Law Firm specializes in real estate transactions, business law, and estate planning law. We combine our tax background with our transaction law expertise to assist real estate owners and property investors in maximizing asset protection. Asset protection is a legal specialty that few attorneys have the expertise to advise business owners about.

Yorkville Real Estate Investor Attorneys: Serving Investors and Business Owners in Business and Real Estate Transactions

At Peace of Mind Asset Protection, LLC, our law firm assists real estate investors and property owners with their business structure and asset protection legal needs. We can help you whether you are a single or family-owned investor(s). In addition, we assist multi-member LLCs and real estate investors in preparing well-written LLC Operating Agreements and solid estate and asset protection plans. Reach out to us today at 630-780-1034 or by online contact form.