BETTER TRADES UNIVERSITY
YOUR EDUCATION GUIDE TO THE STOCK MARKET
Many university business programs give information about ways to protect assets, and one of the most common is forming a Limited Liability Company (also known as an LLC). Information on Limited Liability Companies will be covered in both law and business courses because the subject matter applies to both disciplines. An LLC is a business arrangement that allows for individuals and small companies to have the asset protection normal afforded to large corporations. An LLC also allows owners to practice much more flexible tax options than would be available to a more traditional sole ownership company.
The classes offered at the university level will describe the process needed to form an LLC. Although some paperwork is necessary, the requirements are considerably less stringent than with a formal corporation. Moreover, the majority of paperwork required to start an LLC is limited to the initial formation process. Limited Liability Companies require no formalized meetings or minutes to take place, which means that the company can be run with relatively few restrictions after it is formed.
One may ask why a Limited Liability Company would be useful for asset protection. The answer is two-fold. To start, an LLC allows owners to choose whatever tax plan best fits their individual circumstances. This means that university students can choose what tax plan they wish to follow and will usually choose the plan that results in the lowest tax rate. Additionally, an LLC provides legal protection for its owners. Traditionally, many individuals keep their money in a bank account. However, if legal action is pursued against that individual, for whatever reason, all assets under that person’s name can be taken. However, if a university student places their assets in an LLC, these assets are not directly connected to the individual and cannot be pursued in legal cases.
Even for non-traditional businesses, an LLC is an asset protection option to university students. Oftentimes, an LLC can be formed simply as an entity to hold the profits generated through trading, and thus reap the asset protection benefits associated with a Limited Liability Company. Asset protection becomes an increasing concern as students begin to generate larger and larger profits. In a sense, forming a Limited Liability Company serves the purpose of acting as a comprehensive insurance plan to protect the assets of an individual.