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Why should I form a limited liability company in Wyoming?

Posted by Gayla Austin | Feb 12, 2020 | 0 Comments

What is a limited liability company? 

Answer:  A limited liability company is a separate company, or entity, that can provide asset protection, including protection of real property.   The entity, or "LLC" has its own tax identification number and is recognized by the Internal Revenue Service as a an independent company. 

Why should I have a limited liability company for my real property and other assets? 

Answer:  States, including Wyoming, have enacted a Uniform Limited Liability Company Act.  Keeping real estate in an LLC can protect assets from claims.  

What is the protection available for my assets in an LLC? 

Answer:  A judgment creditor cannot routinely "pierce the veil" of the LLC to obtain assets of the LLC.  For example, if a tenant of your real property sues you as landlord and claims breach of the lease, the tenant cannot interfere with the management of the LLC, cannot force transfer of the membership interest, and cannot force dissolution of the LLC. 

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