With the ever growing trend in America towards identity theft and frivolous lawsuits you must take steps to protect your personal/business information and assets without delay. Let NCH Inc. give you some asset protection tips for your corporation.
Corporate asset protection is the concept of protecting one's assets from frivolous, ill-motivated, illogical and, more often than not, devastating claims that can destroy your current and future lifestyle.
It doesn't take a catastrophic lawsuit to wipe out everything you own. There are many common business events that can equally affect small businesses, leaving the owner's personal assets fully exposed. Could you satisfy all your business obligations without tapping into personal reserves or losing personal assets?
There are various ways to transfer ownership of assets and many entities and devices in which to shelter them for protection. The following is a short list of a variety of devices and entities that can be used for various degrees of estate and asset protection strategies and planning:
- Living Trusts
- Limited Partnerships
- Corporations & LLCs
- Family Security Trusts
- Real Estate Privacy Trusts
- Charitable Trusts
- Life Insurance Trusts
Protecting your assets encompasses more than just safeguarding them from lawsuits. You want to strive to protect your foundation for generations to come. Proper corporate asset protection strategies are critical to a secure, well-protected future for you, your business, and your family.
- An estimated 35,000 lawsuits are filed in the U.S. every day of the week!
- Identity theft is growing exponentially
- Phishing, pharming and other criminal schemes are becoming rampant
The Facts of Lawsuits
While most small businesses know that incorporating can shield personal assets in the event of a frivolous lawsuit, many are lulled into complacency by an "it-won't-happen-to-me" attitude. This thinking has resulting in tremendous losses to many unprepared business owners.
Perhaps the most sought after benefit of incorporating is the ability to separate personal assets from business assets legally by establishing a corporate veil. The corporate veil prevents lawsuits and other adverse actions against a business from targeting the personal assets of the business owner. There has never been a case in which the corporate veil has been pierced on a Nevada corporation that has been run properly.
The Risk of Litigation
If you are engaged in any business activity the chances are that sooner or later you will be sued. The costs of defending a frivolous law suit can easily reach over $100,000. When you are sued, everything you have worked hard to create will be placed in jeopardy.
Who can't wait to sue you? A partial listing, by no means inclusive:
- Employment lawsuits: age discrimination, racial, gender, pregnancy, disability, mental illness, addiction discrimination, sexual harassment, peer harassment, wrongful termination, employee injury, etc.
- Professional malpractice: medical, legal, psychological, engineering, architectural, accounting, etc.
- Business liability lawsuits: environmental cleanup, dissatisfied customers, personal injury, shareholder liability, etc.
- Personal lawsuits: divorce, business partners, creditor claims, accidental injury caused by a family member, personal injury, etc.
The fact is you are more likely to be targeted for a law suit when you are perceived to have assets worth plundering, rather than your degree of fault in any particular matter. Historically, targets with attractive 'deep pockets' were the big corporations, banks, insurance institutions and household names – but that is no longer the case. New targets for litigants are those who have saved for retirement, own a home or rental property, sole proprietors and small business owners. It is estimated that over thirty million people in the United States have mutual funds, savings or own equity their home.
There are over a million lawyers already, with more graduating from law school every year. Every one of them is on the lookout for cases that can earn money and the preponderance of law practices means it is a very competitive market. Lawyers are coming up with more and more ingenious reasons for filing suit. Every day in court a plaintiff prevails against a so-called 'wealthy' defendant – even in cases that appear illogical, irrational and totally devoid of merit.
Prime candidates for lawsuits include:
- Property owners
- Business Owners
- Officers/Directors of publicly traded companies
- Sole Proprietors
- Real Estate Investors
If you fall into any of these categories, or simply have a retirement nest egg, you need to remove any incentive for people to sue you right now! The key to preventing lawsuits is to make sure that plaintiffs and their lawyers can't get their hands on your money because then they won't waste the time and money trying.
The Risk of Identity Theft
Thanks to the internet, people can find out all kinds of information about you. In fact, nowadays access to any individual's private, sensitive personal and financial information is unprecedented. Criminals can find out what you're worth just sitting at their desk – the days of painstaking research, trawling through archives, documents and other written records are a thing of the past.
If you are the victim of identity theft it can take upwards of a month before a major bank is able to investigate the claim and refund the stolen dollars back into your account. That's why corporate and business asset protection is an absolute necessity – lowering your asset profile and keeping confidential information safely out of criminals' reach is paramount.
It makes sense to keep valuable assets out of your personal name, or from being reported under your social security number or other identifier – but how can you achieve this?
Exemptions, Transactions, Entities & Trusts – there are a number of strategies to consider. There's no single solution, as individual circumstances will dictate the right combination of activity. However, many people have taken advantage of some unique privacy legislation by incorporating themselves or their business in Nevada where the state's sheltering corporate statutes allow the highest level of anonymity possible.
By transferring assets into a trust or to business entities, the assets are no longer held or reported in an individual's name. Consequently, it is much more difficult for criminals to find or access either the account information or the assets themselves. Even if the individual's identity is compromised and accounts accessed, the assets held in entities should be unaffected and thus available to keep an individual's affairs afloat until the identify theft matter is resolved.
Nevada Corporate Headquarters, Inc. will show you how to protect your assets with our proven corporate asset protection strategies. Set up your asset protection plan before you get sued. Now is the time to get serious about providing the highest level of protection for your family.
Give Nevada Corp a call at 1-800-508-1729 to get started today.