You’re always looking for ways to make your business better, but are you making sure your business is also protected? If your business has been established as an LLC, or Limited Liability Company, there are ways to transfer your assets to the next generation through your estate plan. Here’s how to include your LLC in your estate plan. 

What is an LLC?

There are different ways to legally establish and recognize a business entity. If you are reading this, you may already have an established LLC. But, if you are here looking into business options, a Limited Liability Company protects its owner from liability. Meaning that the owner’s personal assets are protected from responsibilities like debts the company incurs or liability in lawsuits if the business were to be sued.

Using Your LLC in Your Estate Plan

When setting up your LLC, your first thought probably isn’t “what happens to my LLC when I die?”. In order to protect your LLC from going through probate, you must pass ownership to your heirs. Passing ownership of your LLC doesn’t have to be complicated. With an established trust, you can name your trust as the owner of your LLC. This way your company would be passed to the trustees of your trust while still giving them the same liability protections. Make sure you have a proper succession plan along with your estate plan, to ensure that your wishes for the company are clear. Using your trust to execute the transfer of your LLC is a way to keep the transition simple when the time comes. 

Laws will vary by state and your situation may not call for establishing an LLC. A business and estate planning attorney in your area will be able to help you map out the best options for you based on your business plan and your family goals. 

If you live in Illinois or Wisconsin, we are here to help. Contact us and let us help you figure out the best path for your business. 

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Disclaimer: This article is intended to serve as a general summary of the issues outlined therein. While this article may include general guidance, it is not intended as, nor is a substitute for, qualified legal advice. Your review or receipt of this article by Lexern Law Offices, Ltd. (the “LLG”) or any of its attorneys does not create an attorney-client relationship between you and the LLG. The opinions expressed in this article are those of the authors of the article and does not reflect the opinion of the LLG.