1. You hold assets in your own name:
You have no asset protection
and are vulnerable to attack by any creditor or lawyer wanting to file a
lawsuit against you. A
judgment creditor can swoop in easily and attach any assets you have.
2. You do
NOT hold title to your assets in your own name:
Limited Partnership holds title but as general partner
you control everything. It is no longer easy for
creditors to discover what you own and it is very difficult,
if not impossible for them to break through.
If you want even more privacy and anonymity, a
Nevada or offshore corporation properly structured will work
with the FLP to segregate safe assets like
bank accounts, from
risky assets like investment real estate, boats, and planes.
LLC for Asset Protection, Combined With FLP and Revocable
We form for
Nevada LLC with to hold risky
assets like real estate or to run your business
privately. Our Nevada LLC is the strongest out there,
with a 100-page operating agreement designed
specifically to take
full advantage of every one of Nevada's asset protection
laws. Guaranteed to stand up to any creditor or
We form for
you an FLP
to work together with the LLC in a particular way.
everything to flow through your
revocable trust so all assets pass
easily to heirs.
The FLP will
hold safe assets like bank accounts, and we will prepare
for you a equity-stripping lien with consideration for the FLP to place on your home to
secure its exposed equity.
3. Protecting Your Business Assets:
Wyoming, Delaware or
offshore corporation provides a
line of credit secured by the assets of your existing domestic
business that's in your state.
The assets can be equipment,
autos, stock accounts etc. Since ownership of a Nevada corporation
and especially an offshore corporation is secret and anonymous, your
involvement in these companies is not known.
You sign on the bank accounts but the offshore trust company
will hold your shares secretly.
Now all your assets, personal as well as business, are encumbered and a creditor will have
little luck in reaching you.
4. Using a domestic or
offshore corporation to add extra protection to a FLP:
Your Nevada, Delaware, Wyoming
corporation, or offshore
corporation provides an equity line of credit to your
limited partnership and takes a 2nd trust deed as an
equity stripping lien with
consideration, to secure its
position. The Nevada Corporation or Foreign Corporation will
be ahead of any creditor that files a lien. When the first
trust deed is paid off, the Nevada or foreign corporations
now are in first position. Upon a sale the proceeds will be
paid to the Nevada or foreign corporation.
You can make payments for goods or services that your
or offshore corporations provide to your in-state business.
This transfers profits from your state where they are taxed,
to a non-tax entity. Federal taxes would still be payable
put potentially at a much lower rate. Be aware that under this
scenario you may run across transfer pricing issues that
will cause you difficulties with the IRS or the state where
you reside. So, you must use this method with good
accounting advice from your CPA.
Are These The Only Scenarios?
No, the above examples are just a few ways that
asset protection can be put to use to protect your home and
business assets. There are many more ways and methods of
doing things. Contact us to find
out what works best for you. A good plan requires time to
set up, the proper transfer of assets, and solid
documentation, all of which we do for you.