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1.
WHY YOU
NEED ASSET PROTECTION
Simply put, a
court order can freeze all your assets. You won't be even able
to touch your bank accounts. Attorneys will tell you that It
doesn't take much to be in such a situation. This is why a
properly structured asset protection plan is essential.
Many of our clients use multiple
Nevada entities for asset protection. We have seen anyone from
real estate investors to independent contractors utilize this
strategy.
2.
WHY USE
MULTIPLE ENTITIES
Attorneys will tell you that an
LLC offers great protection, simply because of the fact
that the LLC laws doesn't allow a lawsuit to be filed against a member of the LLC for the liabilities of the LLC. Whereas the main officers of a corporation are routinely named as defendants in a lawsuit filed against the corporation. Therefore, from asset protection point of view an LLC is probably a better entity than a corporation.
See
why LLCs maybe better.
However, a creditor can obtain a judgment
from a court against a member of an LLC and proceed with what
is called a 'Charging Order' remedy. A charging order remedy will
allow a creditor to collect any cash distribution made to the
member by the LLC. As shown in the case at the U.S.
Bankruptcy Court, In re Albright, No. 01-11367 (Colorado. Bankruptcy. April 4,
2003): a single member LLC is not protected against a
Charging Order. In layman's language if the LLC has a manager,
the manager can withhold any distribution to the member in
question. However, it is important that this is specifically
mentioned in the Operating Agreement of the LLC. But this case
demonstrated that a single member LLC doesn't offer you the protection you deserve. This is why
attorneys will tell you that if you do not have multiple members in your LLC, you are not protected.
This is the reason you need multiple members in an LLC. These
members can be individuals or entities.
3.
THE STRATEGY
THAT YOU CAN CONSIDER
A. With 2 LLCs:
Many books and articles have been written by asset protection experts and attorneys; and the following is a strategy that
many agree on. Anyone can consider using this strategy. Under this strategy, we set up the
Manager LLC first. Next, we form another LLC to be the main LLC. Therefore, the
main LLC
should work as the main business entity and
the Manager LLC should act
as the manager. You become the second member of the main LLC. Or
we can provide privacy so that your name is not
published in the public List of Members/ Managers of the main LLC. At the
same time you will be members of the Manager LLC. As far as
Taxes, everything will flow to you, meaning you will pay for
taxes on your own 1040. Do confirm this with your tax advisor..
There can be
additional entities that can be added to the list of members of
the main LLC in consultation with an
attorney at a later date. An attorney may advise you to setup a Trust to
be a member. Or, you can add another
entity such as a Family Limited Partnership or a family member as
members.
Note that if you
have multiple lines of business, attorneys usually advise to put each business in
a different LLC. This is because if you do not separate your
businesses, then a creditor can utilize what is known as 'Attachments and Liens'
to include everything in order to collect the debt.
B. With 1 LLC
and 1 Corporation:
It works the same
way as above, but in this case, the manager entity for the main
LLC is a C-Corporation instead of another LLC. This is mainly
done for income tax savings. Because in case of LLCs all income
and losses flow to the members. But in case of a C-Corporation
the corporation pays tax for the corporation and it doesn't flow
to the officers like in an LLC. Also corporate tax rate maybe lower tax
than
individuals. Therefore, if the main LLC has 2 members: 1 the
C-Corporation and the other yourself; you may opt for the
corporation to pay for the bulk of the income if it is
beneficial to you. So if you are concerned about tax savings you
may opt for this option.
4.
GET STARTED
Knowing the
nightmarish scenario that can happen to you, you should put the
Initial Asset Protection plan in place immediately. Note that a
judge can throw out a structure if it is established after the date of initial act leading to
a legal action against you. Therefore, you
should not wait for something bad to happen. We offer the
Initial Asset Protection Plan as the groundwork for more
comprehensive and on going plan at a later that in consultation
with a licensed asset protection professional.
This package comes with all
of the other features
of our Resident Agent service and includes the filing fees for
each. It
also includes a Nevada address, mail receiving and forwarding
service (fee to be paid for mail forwarding cost) and a Nevada phone number (you only pay for actual minutes used), if needed. Most importantly, it includes our free
ongoing support.
5.
PRICING DETAILS
| You can
choose to
set up the structure with the 2 entities same business day for $699
(during this promotion only). Or, we can add privacy (so that your name is not shown) and set it up
for $899 same business day during this promotion. This is
usually how much it costs to set up ONE entity whereas
you are getting TWO!! Therefore:
Special Promotion: 2
Entities Formation for asset protection total cost:
1) $699 (Same business day formation of 2 entities)
2) $899 (Same business day formation of 2 entities with privacy)
Includes:
- Nevada State filing fee for 2 entities
- Complete Registered Agent
Service
- Complete Nevada
Address Package including Nevada Address, Mail
Forwarding and phone number. Mail forwarding cost is
extra.
Note that after formation, you will need to pay the first year's state annual
fees for each entity. This fee is
currently $125 for each entity and the first year's fee is to
be paid before the end of the month following the month of formation of
each entity. At the same time, if a Nevada Business License will be required, state fee of $200 will need to be paid for each entity. Note that all businesses operating in Nevada are required to obtain a Nevada State Business License (except if your business is a home based business with net earnings less than approx $18,000 for the year) or,if the primary purpose of a business is to create or produce motion pictures. State Business License annual fee = $200.
Each subsequent year, your fee is $249 for each entity
(i.e. $125 payable to the state + $75 for Nevada Registered
Agent Services + $49 for Nevada Address). Add $200, if a Nevada business license will be required. Also add $49 if you will need us to do the filing for you (we will prepare and email you the state forms for you to sign and send back to usto file with state of NV). If you need to continue with privacy you will have the option of choosing privacy service by paying the fee of $200. See what else is included in our Registered
Agent service.
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It is important
to draft the Operating Agreement/ ByLaws correctly and update it as
needed. We will provide you with a customizable Operating
Agreement/ ByLaws for each entity.
NOTE THAT IF YOU NEED TO FORM 2 INDEPENDENT NEVADA ENTITIES. (Unlike one being the manager of the other) PLEASE CLICK HERE.
6.
To order, click on the button below:
.
 CLICK HERE TO ORDER
IMPORTANT: Nevada LLC
Services is not a law firm or a CPA firm and therefore we are
unable to provide legal and tax advise. The above is not substitute
for legal or tax advice. Also, we work with many attorneys and CPAs and if you need we can recommend attorneys and CPAs.
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Questions?
Please Send a Support Ticket or call: 1-866-379-3480/ 1-702-395-2255 or
1-702-425-8600
(
9 AM to 6 PM Pacific Time, 7 Days )
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