Protect Assets with Nevada Corporations

As a physician, I was growing concernedabout the issue of asset protection, giventhe current adverse malpractice situation.So I started looking into asset protection optionsseveral months ago, but became frustrated withthe limitations, difficulties, and prohibitive costs ofthe touted strategies, such as family limitedpartnerships and offshore trusts.

After a thorough search, I found asuperior method of asset protectionthat utilizes corporations, both domesticand offshore, to provide complete,legal asset protection and financial privacyat an affordable price—asset protectionthrough a corporation in thestate of Nevada. Its highlights include:

• Protection of real property
• Ability to move money betweenoffshore accounts and domestic accountswhile maintaining privacy

But why incorporate your assets inNevada? One of the most importantadvantages is the ability to maintain anonymity.Anonymity is a very important aspect to assetprotection. If a judge can find it, they can seize it.Thus, anonymity provides a necessary shelter.

INVISIBILITY CLOAK

So how does a Nevada corporation enableyou to maintain your anonymity? In the state ofNevada, a corporation is required to list onlythe names of its president, treasurer, and directorswith the Secretary of State. All of thesepositions may be held by 1 person, who isreferred to as the nominee officer. You, as theasset holder, would fill the position of vice presidentand be able to remain completely anonymous;even the nominee officer does not have toknow your identity.

Nevada is the only state that does not shareconfidential information about its corporationswith the IRS. In 1992, the IRS tried to changethis and failed. Nevada law does not requirestockholders to register with the state. Therefore,you can own all the shares of your corporation,maintaining complete control of its operations,yet still keep your identity secret.

BEARER-SHARE PERKS

Nevada is the only state that allows the use ofbearer shares, which is the form ofstock best suited to guarantee youranonymity. The stock certificate isissued to the bearer and may beredeemed by anyone who possesses it,just like cash. The person who haspossession of the shares is legally theowner of the corporation. This makesit almost impossible to trace corporateownership. Several other advantagesof Nevada's corporations include:

• No minimum start-up capitalrequired,
• No annual reports required,
• Nevada residency is not necessaryfor shareholders and directors tobecome incorporated,
• One of the lowest incorporating costs in theUnited States,
• No listing of corporate assets required,
• Property ownership in any state permitted,
• 1-person corporations permitted,
• Director and shareholder meetings may be,held anywhere in the world, and
• Can be formed in as little as 24 hours.

To protect real property with a Nevada corporation,it is recommended that you maintainownership of your primary residence. You mayprotect the equity in your home by placing a so-calledfriendly lien on it. With this, your corporationwould place a mortgage on your house equalto the amount of equity you have in it. Othertypes of real property (eg, vacation homes, vehicles,etc) may be protected in the same way, or bytransferring ownership to your corporation. Inaddition to these advantages, there may also beestate planning advantages, due to the fact thatcorporations, unlike people, do not die.

TAX SAVINGS

Business-friendly Nevada is a tax haven forindividuals and companies. The state mandatesno taxes associated with corporate income,gross receipts, issuance of shares, stock salesand transfers, inventory, franchise, capitalstocks, succession, gifts, inheritance, estate, orstate, county, and city income.

If you have a business in your home state,you can establish a tax-savings Nevada corporationto decrease your taxes. To accomplish this,income has to be shifted from your home statecorporation to your Nevada corporation. Thiscan be done by having your Nevada corporationsell services (eg, advertising, marketing, management,or consulting) to your home state corporation.Properly done, the sale of services willabsorb some of the profits of the home corporation,lowering those corporation's taxes, whilethe Nevada corporation, showing some profit,will owe no state income tax. The first $50,000of income will be taxed at the lowest corporaterate. Consult with your financial advisor abouthow Nevada corporations may benefit yourasset protection plan.

Jane Gibson is a practicing

family physician and an asset protection consultant with Personal

Wealthguard. She welcomes questions or

comments at 270-846-3795 or jcgibson@premiernet.net.