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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 54704
Experience:  32 years of experience practicing law and a businessman.
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Would offer any personal lawsuit protection at all to take

Customer Question

Would offer any personal lawsuit protection at all to take my personal money and put it into an LLC that does nothing except invest the money in Certificate of Deposits? Or is this even possible, legal or not piecing the veil ?
Submitted: 7 years ago.
Category: Business Law
Expert:  Richard replied 7 years ago.

Good afternoon. It would offer some protection, but you need to remember that the creditor would still be able to come after your ownership interest in the LLC. For personal asset protection against lawsuits, you would be better served to form a family limited partnership...which would allow you to have all the control through a 1% general partnership interest, with the remaining 99% being owned by limited partners...you and your family members. The FLP agreement would contain a provision that if you were sued, rather than the 1% being able to get taken, it would be forfeited and the remaining LP's would name the GP.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard and 3 other Business Law Specialists are ready to help you
Customer: replied 7 years ago.
< It would offer some protection, but you need to remember that the creditor would still be able to come after your ownership interest in the LLC> Ok but I would be under no legal obligation in florida to distribute any of my owner interest making it less attractive to a prospective suit, is this not correct ?
Expert:  Richard replied 7 years ago.

You would not....but if you owned the entire LLC, and they attached your assets, they could attach that asset and essentially end up owning the LLC.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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