A family LLC is formed by family members to conduct business in states that allow LLCs. Members must be related by blood or marriage. The family LLC is a popular way to protect the assets of a family business against claims by creditors, divide income among generations, and assist in estate planning.

A family LLC is formed by one family member who serves as the managing member. The family LLC’s operating agreement defines and restricts rights related to ownership, functional decision making, and transfer of assets. A family LLC can be formed for legal business purposes, such as real estate or brokerage account management. However, a family LLC cannot be used to manage a personal residence.

Yes, you are required to pay taxes with a family limited liability company (LLC). And you are required to pay the legally required amount of taxes each year as determined by the government. The better question to ask yourself is, “Have I been overpaying in taxes to this point?”

By understanding the Internal Revenue Code (IRC), commonly called the tax code, you may be in a position where you can legally pay significantly less in taxes each year, as allowed by the government. This is where Bob the Wealth Builder can help you by reviewing your expenses and deductions and helping you structure your finances in a way that maximizes your wealth and reduces your taxes.

No, however, most of the expanded legal benefits come from being married and having children. Being married places you in a special status that provides you and your spouse with greater qualifications than an individual who is not married.

If you are a single person, there are steps you can take in this process to lower your tax situation but the savings will not be as high as a person who is married and has children.

First, keep good records, together, of all the financial expenses in your family-owned business. By doing so, you will have a good view of all your possible tax deductions and many times will have more income available. When you operate your family-owned business this way, your spouse will be empowered to make sound financial spending decisions that are beneficial, and clearly identify available tax deductions.

Most home loans are government-subsidized loans, and, as a result, many people are in a situation that requires them to not only pay back the money but also pay higher taxes versus a person who does not have a government-backed loan.

When implementing the strategy from Bob the Wealth Builder, you cannot refinance a government-subsidized home loan but your bottom-line income (because of lessened taxes) can significantly increase. And you begin to take a higher responsibility for your own wealth, success, and financial future for you and your family.

It is very unlikely that you will be audited. In the case of an audit, you would simply forward the documents to Bob The Wealth Builder, who would quickly review the information and then provide an appropriate response to the IRS. Upon acceptance, the audit would be cleared and there is nothing else you would need to do.

In the event the IRS would not accept the response, Bob The Wealth Builder would further review the documents with you to see what else is needed and work with you to quickly resolve any outstanding matters.

No, this is a process that you can take your time establishing. In fact, it’s typically a process that takes 2-3 years but with minimal effort on your part. Bob The Wealth Builder offers a proven process to help you save time and money, and gives you peace of mind.

A.    In a business LLC, you should record only the cost of obtaining income and keeping records.

B.    In a family LLC, you should record the cost of preserving the lives and intellectual property of the owners. These are broad categories and more details will be given upon enrollment. 

The primary benefit of a family LLC is that it clarifies the valuable components of your life (and those of your family) and separates the business aspects that should remain within the business LLC. This healthy separation between the LLCs is beneficial if you decide to sell or re-structure a business LLC. And it also helps you to accurately value the business LLC.

Another significant benefit of creating an LLC is that it preserves the great financial choices that you and your family – many times even the choices your parents and grandparents made in the past. 

Additionally, with a family LLC, you have a better understanding of expenses and income due to properly separating out the business LLC.  Record keeping is much more efficient this way and you can be reassured exactly where your expenses occurred.

No, you can have other sources of income but a business LLC is very common. Many family-owned businesses implement a business LLC in conjunction with their family LLC.