The benefit of a LLC is that the LLC provides you and your partner(s) with limited liability to any suits against the LLC and to any claims against the LLC by any one (including other Partners/Members).
If you create a LLC with someone and then start moving all of your major assets into the LLC, you essentially defeat the purpose of the LLC (in our view), because all of the assets you move into the LLC then become subject to suits and claims against the LLC.
This is what separates a "Relationship LLC" from the conventional "Family LLC" (the family llc/ family lp is traditionally used to lessen the tax exposure of high income married couples.
One of the big reasons why tax attorneys and estate planners have no problem recommending Family LPs and Family LLCs to married couples is that, since the couple is already MARRIED, they are already legally liable to each other for each other's welfare. And since the couple is married and already liable for each other's welfare and since traditionally family llcs and family llps have NOT been used to engage in business, having married couples move major assets in to a LLC or LP did/does not present the same problems as it presents to unmmarried couples.
Again, the Relationship LLC concept does NOT involve you and your partners moving major assets into the LLC. Such a move, in our view, defeats the whole purpose and intent of the LLC in that (as stated) all of the assets you move into the LLC become subject to claims against the LLC.
While creditors of the LLC can still only sue the LLC even when you move major assets into the LLC, if all of your major assets are in the LLC, why would any creditor want or need to sue you personally?.
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