JJ Childers

In Part One of this two-part answer, we discussed the important areas of asset protection, estate planning, and tax reduction. As you learned, there are many important areas to be considered in properly structuring your asset security system. In this second part, we will be taking a brief look at the various entities that make up the asset security system with some bullet points regarding each. This is meant to serve as an overview rather than an exhaustive study on each of these individual business planning tools. Through later installments of the "Ask Our Attorney" section, we will delve into the finer details of each entity so that you can gain a better grasp on which tools can best work together to give you the most iron-clad, rock solid asset protection plan available.

In order to give you a better understanding of the different entities, I have put together a chart for your review that points out the characteristics as well as the differences between the most popular types of legal entities. This should give you a good resource when considering what type of entity might work best for each different type of situation. Over the course of the next few weeks and months, we will be taking a closer look at each of the entities individually and focusing on their role in the overall entity structuring plan.

ACTION STEP

As you can see, this chart gives you a great overview of the basic considerations regarding the primary types of legal entities for operating a business. Once again, over the course of the next few weeks and/or months, we'll be delving into the specifics of each type more fully. Until then, review this chart and think about how each of these points ties in to the information we discussed last week regarding asset protection, estate planning, and tax reduction.