Because of the way the plan is customized, it can be built in parts as you grow. Going entirely without asset protection is growing in popularity on social media in favor of reliance on insurance. Refer to our about us page for info on issues with this approach. In addition to this, if you lose a lawsuit and you have no assets to take, plaintiffs may choose to garnish your wages for decades to pay the judgement off, greatly hindering you, potentially for life. Future earnings are often overlooked by those choosing to forgo asset protection.

While it’s true that LLCs are vital to making the structure work, they have shortfalls, especially if they are self filed and self managed. For one, anonymity is essential as stated earlier. Simply owning an LLC in your name for each property can actually be counter-productive to your safety; if you personally  under legal fire it potentially puts your other entities at risk since they are all in your name. This is called outside protection and most states have weak caselaw for it, especially for single member LLCs.

Thats great! We can incorporate existing entities and trusts so long as they don’t have excessive exposure from past business activities for which the statute of limitations has not yet expired. If your current setup is sufficient for your needs then we will tell you no work is needed. 

Yes, a lot of the time it will. Insurance is notoriously inconsistent with payouts though and our clients don’t like that uncertainty. Insurance companies can simply deny a claim and your only recourse is an expensive lawsuit. By default insurance also won’t cover things like mold, covid-19 infections, contract claims, loan defaults, damage caused by employees, punitive damages, environmental damages and others. Insurance has a very important place, and a solid business structure to go with it will reduce the odds of needing it or maxing out a policy limit on an expensive liability.

Wyoming entities are charging order protected entities (COPEs). COPEs can’t be taken from you, foreclosed on, or forced to make a distribution. This makes them a very formidable legal defense. Other important things to note are that the names of members are not made public record which means greater anonymity. Wyoming also has no corporate income tax.

Most will claim to do what we do but the results will likely be much different. The point of our service is to unite both accountants and attorneys so that they can work together and combine 2+ careers of expertise. An attorney-CPA only has 1 career worth of expertise and they typically focus on one specialty or the other during that career, making their advice somewhat biased. Going only to a CPA will save you money here and there with write-offs and cheap entity creation fees, but more needs to be done for effective litigation defense. Going to an attorney could potentially ensure your safety against a lawsuit but will have you paying a fortune in taxes. Hence why we started our firm.

If an incident happens before things can be put in place your future assets will be at risk because of something called a “Cause of Action”. Asset protection can be unraveled in court if it was done after a Cause of Action took place, and the court may view your current liability as it was when the incident occurred as long as it’s within the statute of limitations. 

Our strategy emphasizes deterring a lawsuit in the first place. If no attorney is speculating on a lawsuit, there is no reason to probe into our anonymity measures. We also have strategies to make it nearly impossible to find some assets because of something called attorney client privilege, something you can’t enjoy the protection of if you self file all your entities.

Yes, it can also be an expensive and tedious process. It’s also not guaranteed to go in your favor. Arbitration clauses are a growing threat to consumers, and in the case of Christian V Preferred Acc Insurance, a complaint was brought forward of bad faith a negligence but courts sided with the insurance company even though the circumstances were nearly identical to a case around the same time that went in the plaintiff’s favor. We would prefer that litigants are discouraged by you legal defenses before things ever go that far.

That depends on how many assets your are comfortable with losing at a time if you lose a lawsuit. If you think of an LLC like a box that isolates personal liability from business liability; then putting all of your assets in that box does practically nothing. Having multiple different boxes ensures if something turns into the worst case scenario, damage is contained only to that box. Not only does dividing your wealth make you much safer in case a piece of it gets in trouble, it also makes you appear less attractive to litigants and serves as a great deterrent.

The trusts are important for several reasons. Their main purpose is for anonymity and to make litigation against you more difficult. For example a board member of an LLC can be a trust, and the trustee can be a Wyoming LLC. They can also serve as vehicle to transfer a property to an LLC without worry of a due on sale clause. Lastly they can decrease your taxable estate which is currently estates worth over about $12m, though current legislation suggests they may be reduced to $1m.

S-Corps only allow you to hold ownership in your personal name, meaning they are very poor for asset protection, anonymity and outside liability protection. They can save you on taxes in some instances and are often recommended by CPAs for this reason. It also has a built in minimum tax as a result of the forced “reasonable salary” that must be paid each year. We believe that a salary is one of the most inefficient ways of moving money out of an entity and in most cases should only be done when trying to qualify for financing or paying for basic expenses. Assets moved in or out are also taxed very inefficiently, and S-Corps are taxed on reinvested profits. Many of these issues are bypassed with skillfully formed and managed C-Corp in tandem with LLCs so long as the C-Corp doesn’t hold any assets.

An LLC’s protection depends how its managed, it’s operating agreement and the state its filed in.. While not following formalities isn’t enough of a reason to warrant a veil piercing in most states, it can serve as the straw that breaks the camels back when the time really matters. Veil piercing was created to stop the perpetuation of fraud and from people using the business as an alter ego. If you want case law examples of people doing things right and wrong, contact us below for a more detailed answer to this question.

Nope, contact us today so we can get a better idea of your situation and how we can help you!