Privacy and asset protection go hand in hand. The less people know about what you own the better your assets are protected. If your ownership and involvement in asset holding LLCs is not readily apparent you have created another road block in your favor.
But we have to be careful in this area. There is a lot of misinformation on the internet about privacy strategies. You simply cannot believe everything you read. You have to be clear about how privacy really fits into your asset protection plans. Privacy through a land trust offers no asset protection.
Privacy through the use of a nominee without the protection of an LLC offers no asset protection. First and foremost you will use a strong asset protection entity like a Wyoming LLC. Wyoming offers the added privacy benefit of not listing your name on the internet as a member or manager of that LLC. If you want that privacy with a Nevada LLC or corporation we offer a nominee service whereby someone other than yourself is listed. With these strategies someone working to sue you will not see your name as an owner anywhere.
This is good.
But it is not always enough. A tenant suing the real estate owning entity doesn’t care who the owner of the entity is when they sue. This is the fallacy of the land trust promotion. The claim against the zero protection land trust goes directly against the beneficial owner. You can’t say the ownership of the land trust is a private matter subject to attorney client privilege. It doesn’t work that way in the real world. An overreliance on privacy without the necessary asset protection is a very bad strategy.
Your first step is the asset protection afforded by and LLC or LP. The added privacy of a Wyoming LLC or a nominee in Nevada is even better. But if you end up in court and are obligated to tell the truth privacy offers no protection. At that point you want a solid LLC in place in a state with strong charging order protection.
Feel free to discuss your privacy and asset protection strategies with us at Corporate Direct.
For more information or to get started, call 800-600-1760 or sign up for a free 15-minute consultation