I am principle of 2 businesses, 1 S-corp, and 1 LLC. The llc is on the verge of going under. How do I protect assets of S-corp?

You should really consult with a local attorney to make sure that your assets are correctly assigned. This question involves many nuances. For example, if you have properly assigned assets to the S-Corporation, the assets held in that business entity should not be impacted by the dissolution of the limited liability company. The fact that you have personally guaranteed the leases for the LLC makes your PERSONAL ASSETS liable for those obligations, but not those of the S-Corporation, again, assuming that all you i's were dotted and t's were crossed. The primary concern is that the creditors may be able to "pierce the corporate" veil of your S-Corporation.

If your assets have not been properly assigned to the S-Corp., then you may have serious problems. In that instance, assuming we are talking about a bankrutpcy situation, the banktruptcy court would be able to go back and reclaim any fraudulent transfers.

These are facts and issues which really should be analyzed carefully by a qualified attorney. Seek help.

I agree with Mr. Shrum.

An LLC is a business form that does provide some advantages but does have some drawbacks. Go over the details with your lawyer.

In the most basic and general terms an LLC features are that its members have limited liability for the entity's debts and obligations, similar to the status of shareholders in a corporation, and its income and losses are normally passed through to the owners as if it were a partnership.

Using the written documentation you have is a good place to begin. Contact a local lawyer - many may give you a free consultation for an hour - to discuss your specifics. Far too many variables exist in the short post you wrote for any further observation by me. Many business attorneys have information posted here on Avvo.

You might find my Legal Guide helpful "How to Choose A Lawyer For You"

http://www.avvo.com/legal-guides/ugc/how-to-choose-a-lawyer-for-you

You might find my Legal Guide helpful " What Do I Tell My Lawyer"

http://www.avvo.com/legal-guides/ugc/what-do-i-tell-my-lawyer

No one can know what the record is in the case because online we cannot see your documents. You need a lawyer. Check with a lawyer in your locale to discuss more of the details.

Good luck to you.

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