If you’re like most people, one of your main concerns in life is protecting your family. When you want a way to provide this type of protection in New York, it’s wise to consider forming a family limited liability company (LLC). With that said, forming this type of company has advantages and disadvantages.
It can be costly
When you start the business formation and planning processes, the costs of these activities are important factors to consider. If you’re looking for an inexpensive way to protect your family’s assets, a family LLC may not be the best option. It’s possible to pay anywhere from $3,000 to more than $10,000 to form this type of company.
It helps with estate planning
It’s also important to note that a family LLC can also help you plan an estate. With this type of company, you’re helping to ensure that familial assets stay within the family. Forming a family LLC can also help drastically reduce taxes that you and your family members owe. Also, this type of company can help minimize tax burdens for your beneficiaries after you pass away.
Protect your assets
One major benefit of forming a family limited liability company is keeping your family’s assets safe from creditors. As family members involved in this company make financial contributions, it limits their amount of debt liability. This kind of security against creditors may only be possible if someone gets protected under a family LLC.
As detailed above, there are several pros and cons associated with forming a family LLC. To help you determine if it’s right to form a family LLC, it’s beneficial to think about contacting a lawyer.