Thinking
a Nevada Corporation Is a Primary Asset Protection Tool To Protect All
Your Assets
What are
the main function of corporations in asset protection and what are there
limitations? The main function of a corporation, whether it is in Nevada
or anywhere else, is its ability to insulate personal assets against
liability. Basically, when you get sued as a corporation operating your
business, your personal assets are separate and can be protected. The
challenge is that a corporation is not always an ideal vehicle to protect
your personal assets.
There are
two major drawbacks of the corporation as an asset protector:
- The
transfer of assets to and from the corporation may carry tax implications.
Yes, you can transfer assets into the corporation tax free under IRC
351, but you must take back 80% of the stock. In other words, you
are trading one asset for another and are really no better off when
you started.
- Creditors
of a stockholder can claim the shares you own or any obligations due
you from the corporation. The corporation actually has marginal use
in wealth protection. Did you ever consider this happening to you?
If you get sued personally and own 100% of your corporate stock, you
will lose your entire company! Even if you own a small percentage
of stock or have borrowed money to a corporation you can lose that
by a personal lawsuit or creditor going after you! How are most of
us most likely to get sued personally? What is the one thing just
about all of us do? We drive cars! Do you know the one thing that
insurance companies will not cover in an automobile accident that
could cause you to lose all your assets personally?
Do you
know the tools that can prevent that from happening and it is not
a Nevada Corporation? Call our offices at (888) 466-7566 for these
answers and more! Keep in mind the corporation is a key component of
your overall asset protection plan, but also it does have its limitations.
You
are welcome to call our office directly for a FREE consultation at (888)
466-7566.
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