Asset protection is the process by which one takes steps to prevent the risk of their personal and/or professional assets being accessed and seized by creditors and/or claimants. Assets include bank accounts, investments, real estate and more. The process is used everyone from the working class to billionaires. Naturally, the more assets one has, the more concerned they are with protecting their assets.
Asset protection is a fundamental step taken by professionals and entrepreneurs. They are at high risk of being professionally sued, thus their professional as well as personal assets are at risk of being seized in a judgment.
How does one protect their assets? There are several avenues one may use for asset protection. The “poor man’s” asset protection involves transferring personal accounts
and assets into a trusted family member or friend’s name before a lawsuit is filed. This is usually done for short-term assets that will be depleted in a short period of time.
More sophisticated forms of asset protection are available in two forms. They are domestic and offshore asset protection. Domestic asset protection for business owners includes setting up corporations. Corporations separate your business liabilities from your personal assets. If one is sued their personal property is protected, only their business assets may be seized.
There are several types of corporations, but the most protective is a Nevada corporation. The most important thing to know about being sued is that the plaintiff’s lawyer will do an asset search on you. They will first turn to tax records to see what you own and pay taxes on.
Many business owners set up a Nevada corporation because Nevada is a tax-free state. There is no personal, franchise, corporate, stock, estate, gift, inventory or inheritance tax. Thus Nevada does not report any income (asset) to the Internal Revenue Service. Also Nevada protects business owners from personal liability against acts committed by their corporation.
Find out more about American Corporate Enterprises by visiting our website at https://americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775)884-9380 today.
Toll free (888) 274-1130 or (775)884-9380 today and visit our website at www.americancorpenterprises.com.