People are now, more than ever, realizing the power of the limited liability company (LLC). If you’re like many people, you probably understand that an LLC can benefit you somehow; you just don’t know the next steps to take. Maybe you’ve just purchased a piece of real estate and know that it should be protected in some way; you just don’t know how to form the LLC and do the transfer. Or, on a whim, you created an LLC for your current business and don’t know what to do now. How do you transfer assets? What do you do at tax time? How can you take on a partner?

You now hold the key to some of the most powerful and successful strategies of the rich. This book was written to simplify your life and eliminate the guesswork of forming and owning an LLC. After all, your LLC should work for you, not the other way around.

After I get into the basics of LLCs, I explore some more complex strategies. This info sets this book apart from all the others. The rich have used a lot of these strategies for decades to operate their businesses, protect their assets, and pass on their estates. Now, I’m putting the power in your hands. When you find a strategy that may work for you, I encourage you to sit down with your team (your attorney, accountant, and/or corporate consultant) and figure out how to build on it and customize it to your specific situation. Use this book as your starting point. Your possibilities are endless, and your asset protection and tax strategies should grow along with you.

If you’re like me and tend to read books from cover to cover (there’s a good chance you are if you are reading this Introduction right now!), then fair warning: this book might seem a bit repetitive. Consistent with the Dummies style, it was written so you can flip to whatever section you need at any point and still understand that section in its entirety. Unfortunately, that means repeating crucial information you may have just read in the previous section. Don’t hate me. I promise you’ll appreciate it later when you flip back to certain chapters for reference.

Now, get going on your journey to success, and don’t look back!

About This Book

Although this book was written in an easy-to-understand, concise manner, I didn’t limit it to the basics. You’ll find that many other books on LLCs just skim over things, filling their pages with forms and legal statutes. They often just cover the basics of filing your articles and creating your operating agreement without delving into the more powerful uses of LLCs or the strategies with which LLCs can be integrated. Instead, I crammed these pages with valuable information you’d be hard-pressed to find in other books.

Even though this is a For Dummies book, you’re no idiot. You don’t want to be put to sleep while reading a jargon-laden book on complex strategies that even most attorneys can’t understand. You want something that dives deep but keeps it simple, and that’s what I strive to give you — well-organized, easy-to-read, and fluff-free information.

I know, I know — you’re busy! You operate on a need-to-know basis, and the rest is just gibberish. Therefore, to speed things up a little, feel free to ignore anything with a Technical Stuff icon next to it. The information in those paragraphs isn’t really necessary to understand the topic. Also, the sidebars are fun, but they’re sort of a bonus for those who aren’t time-impaired. Feel free to skip those, too.

I use a few conventions in this book. They’re pretty intuitive and easy to understand, but here’s a rundown anyway.

• Any industry terminology that may be new to you will appear in italics.
• I boldface the action parts of numbered steps and keywords or the main points in bulleted items. Also, I use boldface when referring to important forms.
• Sidebars, which are the gray boxes of text, contain fun stories, examples, or other pieces of information that are great to know but not necessary to read if you’re in a time crunch.
• Nine times out of ten, I won’t spell out “limited liability company” but will instead use the abbreviation “LLC.” I can’t help it — it’s just too easy!
• When this book was printed, some web addresses may have needed to break across two lines of text. If that happened, rest assured that I haven’t added any extra characters (such as hyphens) to indicate the break. So, when using one of these web addresses, just type in exactly what you see in this book, pretending the line break doesn’t exist.

Foolish Assumptions

In order for this book to cater to a broad audience, I needed to make some foolish assumptions about you, the reader, and your skill level. After all, it’s not Limited Liability Companies For Attorneys or Limited Liability Companies For Residential Real Estate Investors. It’s Limited Liability Companies For Dummies — in other words, “everyone.” Let’s see if any of these shoes fit:

• You’re a budding (or experienced) entrepreneur looking for the next leg up.
• You have a business and want to finally get legit and form an entity to protect yourself.
• You’re a real estate investor looking to save some dough and keep your butt out of the courtroom.
• You’re an inventor who wants to protect your patents from a random lawsuit that may be just around the corner.
• You have intellectual property and want to keep it right where it is — in your name.
• You’re old or young and planning your estate.
• You want to raise money for a project and want a vehicle to keep things in order and sweeten the pot for your investors.
• You were born on a day that ends in the letter y.

If any of the above assumptions fits your profile, then this book was written especially for you!

Icons Used in This Book

I use icons to highlight important information. When you see these, make sure to pay close attention — otherwise, you may miss some really good info!

This icon flags helpful tips, tidbits, and secrets that may give you an upper hand on your road to success.

If I mention a topic more than once and/or use this icon, then you should make an effort to remember the information. These concepts are often the most important.

Whenever I use this icon, you should watch out! Obtain advice that is specific to your situation from a professional. Otherwise, legal or financial snares can ensue.

I use this icon to flag some technical stuff that may be a little advanced and difficult to understand for the LLC novices out there. When you encounter one of these icons, don’t worry — just ignore the information or ask a competent professional for advice.

When you see this icon, know that I’ve got you covered. This icon flags the extra information and helpful, time-saving tips.

I use this icon to flag helpful online resources, where you’ll find additional help.

Beyond the Book

One of the great things about LLCs is how much you can do with them! Unfortunately, if I were to write everything one could possibly know, this book would rival the length of War and Peace. So, to save some trees, this book you’re reading right now comes with digital perks!

First, I have created a password-protected online resource center made specifically for For Dummies readers. When I mention state laws throughout the book, I will refer you to this online resource center for more information specific to your state. You can access this information anywhere, and you can also be sure that it’s up-to-date. The online resource center can be found at http://www.corpassure.com/dummies. The password is onesmartdummy.

You can locate the Cheat Sheet at https://www.dummies.com/article/business-careers-money/business/small-business/general-small-business/limited-liability-companies-for-dummies-cheat-sheet-207646/, where you’ll find handy hints and tips.

Where to Go from Here

One of the many great things about a For Dummies book is that you don’t have to read it from cover to cover to get to what you need to know. This book was designed to be jumped into, with each chapter standing on its own. Find a topic that interests you and start there! After all, why waste time reading mundane topics you already know when you can immediately get to the good stuff?

If you’re a complete novice and just dipping your toes into the whole LLC concept, you may want to read Chapters 1 through 3 and then skip to whatever topic interests you most. If you have already formed your LLC and are looking for the next step, you may want to skip to Chapters 8, 9, and 10 to find out how to create or revise your operating agreement. Only interested in the use of LLCs for real estate? Skip to Chapter 17. Ready to dissolve your LLC? Feel free to flip to Chapter 15.

Or, you can read the book cover to cover if you want. You get a lot of juicy info out of every chapter!