Most investors focus on the deal itself, but how the deal is structured matters too. Investing under your own name, or mixing several investments without separate structures, can create risks you may not have considered. A single-purpose LLC, properly structured, can help isolate a specific investment’s liabilities from your other assets. Before you look at the terms, look at the structure.
Key points
- Investing in your own name can expose your other assets.
- A single-purpose LLC can help isolate one investment’s liabilities.
- Review the structure of a deal before its terms.
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