November
12

Most people think that asset protection is as easy as purchasing an Investment Holding Corporation or an LLC in tax liberal states like Delaware or Nevada, or in offshore tax havens like St. Kitts and then just transferring your assets to it. Well, they are only getting part of the picture. In fact, things might get much more difficult when you have different types of assets to protect including “High Risk Assets”. When you incorporate in Nevada and your line of investments and assets to manage is complex, you should be wary of the following very common mistakes with very serious consequences:

  • Never rely on a “Bearer Share” corporation methods to protect your possessions.
  • Transfer passive investments or assets to a C-Corporation will leads to a risk of personal investment holding corporation additional tax penalty of 39 %.
  • Never assign “high risk” and “safe” assets to the same LLC.
  • Do not transfer your home as an asset into a Corporation – this will cause automatic loss of $250,000 ($500,000 if married) in capital gains tax exemption after the sale of your personal residence.
  • Never move assets or a residence into a “Living Trust” for assets protection – such assets will be quickly seized by creditors. “Living Trusts” provide no asset protection from creditors.

    BEFORE you make the mistakes that will cost you an arm and a leg, consult a professional! In most cases, the solution is complex and requires the use of multiple LLC’s especially when it comes to protecting different types of assets like “High Risk Assets” or “Extreme High Risk Assets”. Make sure you figure that out before filing your incorporation documents!

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