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Privacy In Nevada Will NOT Help Protect Your Assets!

Mar 22, 2008
Some individuals looking to form a Nevada corporation or LLC are hoping that if they get sued no one will find out who the owner of the corporation or LLC is, thus, preventing them from being the target of frivolous lawsuits. In the context of litigation, the best scenario is presenting a properly structured business model and having the court rule in your favor with the end result being your assets are protected!

Now, if it takes longer for someone to get to first base in your situation to figure out who the owners are, wonderful, that just means the plaintiff will have to spend more money! After all, aren't most lawsuits a simple gain of economics? And if you can make it very expensive for the plaintiff to find your assets the better!

So, what is the challenge?

The challenge is the creation of rock solid asset protection plan that does not rely solely on the illusory promise of privacy through the use of Bearer shares (which don't work) and nominees (which work to a certain degree). If your corporation or LLC lacks substance, has no employees, no business license and was formed just to prevent discovery of your assets, the plan is doomed to fail! The only way you would be protected would be to hide under a rock, because you had to be so private!

Again, if you structure a rock solid asset protection plan and have privacy along with it that is the icing on the cake!

The most common places most people have to give up their identity and are shown as being connected to a corporation or LLC are in the following areas:

1. Issuing stock
2. Obtaining a Nevada Business License
3. Opening a Nevada bank account
4. Being an employee or independent contractor to the corporation
5. Entering into other contracts or agreements
6. Loan applications from banks

It is important to realize that you may be private on the surface, such as the state records, but eventually, your name will appear in one of these six (6) areas. You cannot be so private that your name won't appear in one of these six (6) areas unless you choose to have no role in your corporation or LLC.

Nevada is pro-business and has a strong history of protecting the corporate veil. Creating a sound business model and understanding all of the strategies available to you will complement your plan of asset protection.
About the Author
Scott Letourneau is the CEO of NCP,Inc. and an authority in helping people form entities,grow their business,and protect the assets of that business. For more info contact: Scott Letourneau at 702-367-7373 or http://www.nvinc.com/whyincorporateinnevada.htm
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