Asset Protection Strategies for Liquid Assets
Protecting liquid assets totaling less than $100,000 can be done with a simple domestic asset protection strategy or, depending on your level of comfort, an offshore plan. As we learned in the planning and services section of this website, moving your assets into a vehicle that provides privacy and protection is the goal of the overall strategy. For liquid assets totaling less than one hundred thousand dollars, this can be done using a legal entity or business structure. Privacy is a big concern and preventing current and potential creditors from locating your assets is a strong deterrent for a legal enemy.
A simple domestic approach to accomplishing these goals is to form a Nevada limited liability company and structure it properly. Nevada offers the most privacy and additional elements that make it a wise choice for a liquid portfolio of this size. We offer a privacy service for legal entities in several states, as well as office programs. By combining the services you can form a separate legal entity without your name on public records, by using nominee officers for public recording, your business structure is formed, privately. The office program creates validity, in the event that somebody calls your company, a receptionist answers the phone, your mail is forwarded and you can hold appointments in your office.
As a majority member, you can always vote the nominee officers out of the legal entity. In addition, your nominated officers are for privacy only and do not touch any funds associated with the company. You have signature authority over all accounts. Your nominees do not have access or signature authority over any account. They simply fulfill the legal requirement for a company to have one or more listed managers on public record.
The office program (or headquarters program) is used to increase your privacy and eliminate state taxes. In order for your Nevada Company to provide you with maximum financial privacy and operate income-tax free in Nevada, it must:
- Have an actual Nevada business address and cancelled checks or credit card statements showing that it has paid for its own business location
- Have a Nevada phone number
- Have a business license if applicable to its line of business
- Have a bank or brokerage account in Nevada
The Nevada Office Program fulfills these requirements.
Additional Domestic Asset Protection Strategy Information
The private Nevada business structure and office program can be used in many ways. Depending on what kind of income, the value of the liquid assets and what your expected annual return, your strategy can have several variations. It is policy to conduct a thorough consultation so that you are educated on all of your options and the recommended items can be carefully explained.
In some cases protecting your investment portfolio, investment income or profit is an important concern. These types of assets can easily be protected with a simple domestic solution, as recommended above. However, there are methods to create an even more effective strategy using both an LLC and Corporation in Nevada that pay for services. This means that one entity "owns" the assets and another is paid the profit or receives income that is dispersed to the other entity as a management fee for tax savings purposes.
The Next Level of this Asset Protection Strategy
Offshore protection options offer the highest level of privacy and protection. A Nevis LLC with an offshore bank account is a highly recommended option. Bank deposits of less than $200,000 we recommend establishing a bank account in the Caribbean. Bank deposits in excess of $200,000 we recommend establishing a Swiss bank account. The Nevis LLC statutes innately provide for asset protection and your financial privacy. This strategy also places assets outside of the US. This makes the funds very difficult to locate during a standard asset search, and in the event of a judgment, nearly impossible to seize.
These recommended strategies remove assets from your name, directly, and place them into an entity that you control. You have 100% control over your assets. For more information on liquid asset protection, ask an experienced and qualified consultant to explain your options and answer all of your questions.