Unlike in many other states, a Nevada LLC does not require a business purpose to be formed. This is of critical importance when considering Asset Protection.

Currently, 14 states (California, Indiana, Iowa, Louisiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, Texas, and Virginia) require a business purpose in order to form an LLC. Because of this, an LLC formed in these states cannot be used to hold an asset to protect it from creditors, unless that is deemed a business purpose in that state.

A Nevada LLC can be operated as "a Nevada Investment Holding LLC" or "an investment management company" and simply "hold and manage" assets. In this way "personal assets" can be protected from judgments.