- Shocking Fact # 1: Suing somebody is considered the 2nd best way to get rich, right after winning the lottery!
- Shocking Fact # 2: In the US, 80 million lawsuits are filed every year. That's over 150 suits per minute, 24/7 - 365!
This has come to be known as the "litigation explosion": You can be sued by anyone, at anytime, for anything!
What does this come down too? Legal Extortion!
This may sound dramatic, but once you are served with a law suit, even if you are completely innocent, what are your options?
- Option # 1: Settle out of court and pay off the plaintiff! or
- Option # 2: Pay an attorney $5,000 to $10,000 MONTHLY, to defend your innocence!
Neither option is attractive, because it is not uncommon for awards in negligence cases to exceed $1,000,000 with attorney fees in the $50,000-$100,000 range. What makes it worse? You cannot count on insurance to protect you! Insurance companies have hundreds of attorneys trying to figure out how they can legally deny your claim!The alternative is to use the law to YOUR advantage! Protect your assets legally!
Law suits are about money - Your Money!
A plaintiff's attorney will initiate an asset search to ascertain if you are a prime target for "legal extortion" or for "collection" if he is sucsessful in winning the suit. This consists of locating any assets tied to your name and Social Security number. How accessible is this information? Thanks to the Internet just about anyone can find out everything you own by performing a simple online search. The assets shown on these reports will include your home, vehicles, investment real estate, bank and brokerage accounts, patents, intellectual property, businesses, and, well, just about anything else of value that you own. The mere fact that you own these assets makes you a target, regardless of your innocence. The Nevada Investment Holding LLC
The Nevada Limited Liability Company (rather than a corporation) is the primary entity used for asset protection. Unlike in many other states, A Nevada LLC does not require a business purpose to be formed. 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 "an investment holding company" or "an investment management company" and simply "hold and manage" assets. In this way "personal assets" can be protected from judgments. Nevada has the strongest asset protection laws in the United States.
Cash, investment securities, notes, receivables, investment real estate, a personal residence, patents, trademarks, copyrights and shares in a closely held corporation are all eligible for protection. In exchange for transferring assets to the Nevada LLC, you receive a membership interest.
A Nevada Limited Liability Company used in this way is a very powerful asset protection tool. Many wealthy persons spend tens of thousands of dollars developing complex strategies to protect assets. For the average person with moderate assets this strategy is affordable and extremely effective.
First line of defense: Privacy:
Privacy is extremely important in asset protection. We provide "Nominee" or "Privacy Services"
to eliminate your name from public record. You control your assets through confidential Nevada LLC "membership". If a judgment is issued against me personally how does a Nevada Investment Holding LLC help?
The judgment creditor would like to seize bank accounts, real estate and investments in order to collect the amount which is owed. An asset search in your name will reveal little, since (once the Nevada LLC is funded) you no longer legaly "own" these assets. Now your primary asset has become the confidential "membership interest" in a Nevada Investment Holding LLC
. Most collection efforts will end right here.
An aggressive creditor may force a "debtors examination" in court: Here you must reveal your membership interest in the Nevada Investment Holding LLC (to avoid committing perjury). A good asset protection plan, should incorporate maximum privacy, but when required by law to disclose your assets, you will be able to do so, without the risk that those assets will be seized or assigned to a creditor.
Once your assets have been disclosed, the creditor will now understand how difficult and costly any collection action against the membership interest will be. The creditor should also be informed that collection action may result in an income tax liability (Phantom Income
) to him, even if (as we expect) no distributions are ever made to the creditor.
Asset Protection can be as simple as purchasing a Nevada Investment Holding LLC
in order to transfer your assets to it. Acting now and doing this one thing is 100 times better than doing nothing!
Sometimes the solution is more complicated and requires the use of multiple LLC's. If this is the case please contact us
for a FREE consultation. If necessary, we will be happy to talk to your Attorney or CPA in order to arrive at the very best solution for you.
Ready to get started? Purchase the Nevada Investment Holding LLC FREE Tutorial:
Want to learn more about Personal Asset Protection? Take this quick Asset Protection Tutorial
For "Extreme High Risk Assets" such as: High risk Intellectual Property, High risk Domain Names and Web Sites or Liquid Assets to be held outside of the jurisdiction of a U.S. Court, the use of Offshore Incorporation Services
should be considered.