LLCs/Business Entities/Corporations

The Loeffler Law Firm, LLC Practice Focus. In conjunction with the asset protection and estate planning services offered to our clients, one of the other primary practice focus areas of The Loeffler Law Firm, LLC is the formation of LLCs/Business Entities/Corporations. Provided below is some general information regarding LLCs and corporations.

If I am in a business or profession or I am a real estate investor, is it necessary to form a business entity?

Yes. We strongly recommend to our clients that a business entity is formed such as an LLC or corporation. An LLC or corporation can insulate one’s personal or individual assets from the liabilities or business activities of the LLC or corporation. It can also provide for the orderly buyout of a person’s interest in an LLC or corporation.

What is an LLC?

An LLC is a limited liability company. It has characteristics that are similar to a corporation.

What is better an LLC or a corporation?

This depends upon the facts of a client’s situation. In some instances, a corporation may be more appropriate than an LLC. LLC’s typically can offer more asset protection advantages than a corporation because of the “charging order” creditor protection that is associated with an LLC. Additionally, in some circumstances, existing corporations can be converted to an LLC (this is called an F reorganization).

Should I form an LLC in a state other than Ohio?

This again depends upon the facts of a client’s situation. The liability protections offered by an Ohio LLC are average. Ohio allows a creditor to pursue the remedy of foreclosure of a debtor’s interest. This is not a good asset protection result. There are other states, such as Delaware, which do not allow foreclosure of a debtor’s interest in an LLC. This increases greatly the asset protection of an LLC.