How can a Texas limited liability company protect my assets?
A. A big difference between a limited partnership (“LP”) and a limited liability company (“LLC”) is that the LLC does not have a general partner. In other words, there is no LLC owner who is individually liable for the LLC’s debts and obligations. All of the LLC owners are treated for liability purposes as if they were a limited partner of an LP. In other words, limited partners have no personal liability for the LLC’s activity and stand to lose only the amount which they contribute, or obligate themselves to contribute, to the LLC. Assume that Alex and Pat transfer ownership of an apartment building to an LLC in exchange for each owning a 50% interest in the LLC. If a tenant of the apartment building is injured on the premises, the assets of Alex and Pat would be protected from any claim by the tenant against the LLC or any judgment rendered against the LLC. Also, an LLC’s property cannot be reached by a creditor of an LLC owner. As is the case with the LP, LLC assets are protected fr
