LLC for Investing
An LLC for Asset Protection in Naples
Signet Financial Management of SouthWest Florida can help you consider the asset protection you’ll receive from setting up an LLC for investments in the Naples area. Many times, clients come to us to investigate the possibility of creating an LLC for a group of investors. We are always happy to discuss this option and talk about the advantages this structure has to offer.
What is an LLC?
The abbreviation LLC stands for Limited Liability Company, and it does basically what it hints at through its name: It reduces the liability to the individual(s) who created it. An LLC helps protect people from personal liability, much like a corporation. It also sets up a set of rules that must be followed by everyone who is involved in the LLC. This can be a helpful way to organize investments that involve multiple people, as it structures the overall process for investment management. The people in an LLC are referred to as “members.”
LLCs and Taxes
One of the advantages to an LLC is that members don’t pay taxes. Unless set up otherwise, income in an LLC passes through to the individuals involved, much like a sole proprietorship or partnership. This means that the LLC is structured differently than a corporation, which is another option available to multiple members. Although an LLC is not a person, it can buy investments, such as stocks. Who can purchase these investments is usually spelled out in something called an operating agreement. Basically, this agreement sets up rules for who can do what within the LLC.
Operating agreements can spell out several different things, such as the percentage each person owns, guidelines for buying or selling their interest in the company, and other matters. When an LLC is formed to bring investors together, it can establish rules for the distribution of profits and other important details.
Professional LLC Assistance
If you’re thinking about getting an LLC drawn up, Signet Financial Management of SouthWest Florida can assist you in drafting the paperwork. We are also able to advise you when it comes to structuring your LLC so all parties are fairly represented. Our wealth management advisors have done this type of work for many different clients, and we always take the time to make sure we are listening to your specific needs.
We understand that asset protection is a very important consideration when it comes to creating an LLC for investment purposes. Our investment management personnel are here to make sure you get the protection you can draw out of having an LLC. It’s worth looking into if you have multiple investors who want to come together for a common purpose. The tax advantages and liability protection make this structure an appealing choice. Please get in touch with our office today to schedule an appointment and we’ll talk you through all the details involved so you can make an informed choice.