Steven Sears
Irvine, CA (USA)
Role(s):
Associate/Staff
Steven Sears Attorney
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Startup
Location:
Irvine
Industry:
Legal
Year Founded:
2000
Number Employees:
1-10 people
Description:
Steven Sears Attorney : There can also be lawsuits against individuals in the LLC. A creditor can make a charge against an individual which means they are charging against the income, they will try to step in and take part of the income distribution- No distributions can be done. The tax flows through to the judgment creditor on the form K-1. This can flow to the creditor that will be stuck with a tax liability but no income- no asset to pay the liability. Similar situations can be done with trusts with sprinkling powers. The right to income is contingent upon the trustees choosing upon a distribution. So now we have achieved the estate planning, planning objective, asset protection and everything goes into the LLC entity.