Limited Liability Companies

When it comes to investment assets, the LLC is the entity of choice.  It is a pass through entity for tax purposes because it is either a disregarded entity, taxed like a proprietorship if it is a single member LLC, or a pass through entity taxed like a partnership if it is a multi-member LLC.  Both the corporation and the LLC provide a shield of liability, which means that claims against the corporation or the LLC or the assets that are placed in them cannot generally be asserted against the individuals who are the owners of the corporation or the LLC, and thusly their personal assets are protected from these business claims.