Investing with A Limited Liability Company (LLC)

Posted by Brook Walsh on Friday, September 1st, 2017 at 10:59pm.

Many investors have never owned a stock or bond. Instead, they have most of their net worth tied up in a family business or startup.  In the past twenty years, Limited Liability Companies, or LLCs, have become one of the most popular ways to hold ownership stakes in these types of businesses.

There are unique benefits and protections afforded to the LLCs owners make it easy to understand why they are so highly favored.  It is essential for you, as a new investor, to understand how they work, why you should care about LLCs and some of the tax implications.

This collection of LLC articles, including Limited Liability Limited Partnerships which are a relatively new legal entity that combines aspects of a limited partnership with a limited liability company, will explain the basics to you so you can educate yourself before meeting with a qualified professional.

  1. Limited Liability Company Basics. A limited liability company is a type of business that combines the benefits of a corporation with the benefits of a limited partnership. The most notable advantages include pass-through taxation, asset protection, limited compliance rules, and less rigid structures for management. If LLCs have sparked your interest, take some time to read over this list of important pros, cons, and considerations before deciding to buy equity in one or form your own.

  2. Limited Liability Company Operating Agreements Basics. All limited liability operating companies are supposed to be governed by a contract that the investors sign amongst themselves prior to the company's formation. This contract is known as an LLC operating agreement and provides vital information to the company's policies, priorities, and procedures, and is required by many states to be presented with their application for incorporation. Here are just a few of the most important provisions you are likely to see in a standard LLC operating agreement.

  3. Deleware Limited Liability Company Basics. A Delaware LLC offers would-be business owners a lot of advantages such as low or no taxes, asset privacy, low annual filing expenses, easy start-up processes, and asset protection from creditors. In fact, investing through a Delaware LLC is often a top choice for many professionals, and was long before Nevada changed its laws to compete with them. Here are just a few reasons you may want to consider incorporating your business or holding your investments through one of these entities.

  4. Limited Liability Company For Family Investment Basics. To take advantage of economies of scale, families will often pool their money together to form small businesses, invest in shares of stock, bonds, or mutual funds, develop real estate, or any other business or investment venture. How these family LLCs operate will be defined in their operating agreement. Walton Enterprises, LLC, for example, is a famous family limited liability company through which members of Sam Walton's family control Wal-Mart Stores, Inc., a regional bank named Arvest, and other investments. Discover how family limited liability companies can work for you.

Contact me today to learn more about Investing with A Limited Liability Company Send me a message or give me a call at 231.459.3179.  

Focused on Northern Michigan Investment Real Estate

Brook is focused on lifestyle real estate investment properties as most people want a vacation home to make lifelong memories that endure for their entire family, leave a profound legacy for generations, and they want a solid financial investment at the same time.  While the area does have many good realtors, there aren’t many with the unique financial, vacation home investing, and technology marketing background. Brook uses his diverse skill set to help clients properly evaluate and determine whether a vacation home makes financial sense.

"I have significant experience buying and selling Northern Michigan real estate and I'd like to help you find the perfect home. Send me a message or give me a call at 231.459.3179 to learn more today."

Continue Your Northern Michigan Real Estate Search
Explore homes and real estate in the Northern Michigan communities below or contact Brook Walsh to help you with your search. 

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com

Sign up for email updates