“I am seeing more folks lose wealth, because they lose their business through personal creditor problems than I am seeing folks lose their personal assets because of business problems."
Siesta Key, FL (PRWEB) February 25, 2013
A “Sole Proprietorship vs. LLC” analysis by attorney Lee Phillips has just been posted on LegaLees.com. The sole proprietorship is the most common form of business structure in the United States. The limited liability company (LLC) is also popular, even though it is a relatively new business structure. The article focuses on some differences of the two entities and how to get double liability protection.
The whole sole proprietorship vs. LLC discussion is about liability. There are two types of liability-business and personal. Phillips said, “People seldom focus on protecting business assets from personal liabilities that occur. Everybody focuses on protecting personal assets from business activities. Yet, it’s just as important to protect the business from personal liabilities as it is to protect personal assets from business liabilities.”
Mr. Phillips states, “I am seeing more folks lose wealth, because they lose their business through personal creditor problems than I am seeing folks lose their personal assets because of business problems. That’s an issue that needs to be addressed in the sole proprietorship vs. LLC decision that is seldom if ever addressed.”
Mr. Phillips further clarifies, “The concept of protecting business assets from personal liabilities is very foreign to most people. The thought never crosses their mind. A sole proprietorship doesn’t give the “proprietor” any protection from what happens in the company, and it can’t give the company protection from what happens in the personal life of the proprietor."
Concluding he says, “An LLC can protect personal assets with the ‘corporate shield,’ plus it can protect business assets from personal liabilities. In many ways the LLC is a more powerful asset protection tool than a corporation. It provides what I like to call, ‘Double Asset Protection,’ meaning if it is structured properly, it gives liability protection for both business and personal assets.”
Mr. Phillips serves as a counselor to the Supreme Court of the United States. He is the author of 11 books, along with his latest book Protecting Your Financial Future. He has written hundreds of articles for professional people assisting them in finding various strategies to use the law to protect their property, save taxes and make additional money. He has given addresses at thousands of business seminars. He enjoys helping people apply the law, not only to provide asset protection and estate planning, but to use it to structure businesses and save taxes, helping individuals find success.
LegaLees was founded in 1982 by Lee R. Phillips. It is a legal self-help publishing company. It produces products designed to help people understand the law. Based on his own personal experiences, Mr. Phillips realized that people needed to be able to understand how the law works so they can direct their own legal professionals. He also saw that people who want to do their own legal work need to be shown how, not just handed a fill-in-the blank form. LegaLees has designed many products to help individuals structure their personal and business affairs. All of the products help the clients protect assets and prevent legal disasters that can strike at any time.