single member LLC

I just read a new case that broke through an asset protection plan a gentleman had set up to protect his personal residence. The case didn’t break any new ground, but it was a great reminder of just how important it is to follow corporate formalities to maintain a corporate asset protection plan.

We’ve been talking about single member LLCs (SMLLCs) for the past couple of days on the TaxLoopholes Forum. Because an SMLLC means one thing legally and something else from a tax perspective, it’s really easy for people to confuse the two.