@originaldohnthornton: Most business owners think their LLC / Corporation automatically protects them.
It doesn’t.
Because statutory law entities only work if EVERYTHING is done perfectly.
Perfect bookkeeping.
Perfect compliance.
Perfect separation of funds.
Perfect filings.
Perfect corporate records.
One mistake…
one missed requirement…
one bad fact pattern in a lawsuit…
and attorneys can start arguing the corporate veil should be pierced.
That’s the part most business owners never understand.
The protection is conditional.
Meanwhile, the LLC / Corporation is still publicly visible and still creating taxable events the entire time.
But a contract law spendthrift trust operates completely differently.
No corporate veil to maintain.
No public state registration.
Powerful lawsuit protection.
Far greater privacy.
And no taxable events.
(Info purposes only; not a licensed tax, legal, or accounting professional) #taxdeductions #taxreduction #taxsavings #LLC
