Re: Operating as an LLC
I had my attorneys draw up an LLC for me. I will start doing business as the LLC in July.
1. I do not believe it to have much if any liability protection.
2. Still taxed as an individual in most cases.
3. You do not need an LLC to recognized as a legitimate business.
4. You only need an EIN for you company to open a bank account. Don't need to be an LLC.
5. You can buy liability insurance regardless of business structure/entity.
So why did I have my attorney draw up the LLC? For estate planning purposes. We have a trust setup that owns our primary residence. The trust is also the sole member of the LLC that owns our rental house. The trust is also the sole member of the LLC that owns our mineral/oil estate in the Bakken oil field. The trust also is the sole member of the LLC that will begin business in July for our production company. The trust is a second beneficiary for certain retirement accounts of ours.
When we are struck down by lightning we know that our estate will be distributed by our trustees the exact way that we had our attorney write it up. That is very important to us.
