The LLC or Limited Liability Company is a relatively new device in the world of asset protection. It was originally designed in Wyoming and is now available in almost all states. It was created as a planning tool to literally offer the best of both worlds, it allows for the protection of a corporation and the tax benefits of a limited partnership. On the surface the LLC seems to be a godsend. The problem we have in recommending the LLC, is the lack of supporting case law and the inconsistent treatment of the vehicle by the IRS. It just has not been around long enough.

Advantages:

· Limited Liability of all partners

· Can be treated as a partnership or corporation for tax purposes

· All members may participate in management of the company

· Profits and Losses are passed through to the Members

· Has the creditor remedy of a Charging Order

Disadvantages:

· Does not have years of case law to back it up

· IRS's position on it is not established