What is the pros and cons of a LLC and an estate LLC?
1 Answer from Attorneys
I don't know what you mean by an "estate LLC." What are you trying to accomplish? If you are thinking about forming a business, then you need to have some kind of corporate form. Whether that is a chapter S or chapter-C business corporation or an LLC will depend on a few things. How many employees or owners of the business will there be? What provisions will there be to add new members? What does the business do? What will happen when you die? Will your heirs run it?
You may want to go to www.nolo.com to read some basic information - this is not the place to post about the differences as there are too many to list. Nolo is one site which has several articles about LLCs versus business corporations but I am sure there are others. Regardless of what you decide, make sure that you have a competent business attorney draft your bylaws or operating agreement for your business corporation or LLC and prepare the incorporation/organization forms for you.
If you are thinking more along the lines of estate planning, you might want to create a trust and have your business owned by the trust. Or you can pass any interest that you may own in the business to your heirs via a trust or will. It will depend on what you own and the value of your estate. Right now, the estate taxes are set at $5 million ($10 million for married couples) but that will all change at the end of 2010. It is impossible for any estate planning attorney to predict with precision as to what Congress will do at that time or whether there will be a rollback of estate taxes to $1 million or not. If you are over that, you may want to consult an estate planning attorney who concentrates on high net worth individuals as they will have many ideas about different estate planning vehicles that will minimize any estate taxes. If you are under that amount and not likely to go over $1 million, I can draft either a will or trust if that is what you need. Please contact me at rachelforjustice@hotmail,com if interested.
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