Multiple Corporations

For asset protection, it is sometimes a good idea to set up multiple corporations. Many good asset protection strategies involve the use of multiple corporations or multiple limited liability companies (LLC). When setting up multiple corporations, you can set up different corporations or limited liability companies (LLC) in different states.

Start a corporation in your home state

First, set up a corporation in your home state. You need to have a corporation in your home state with physical address in your home state.

Incorporate in a tax advantaged state

The next corporation you will set up is in a tax advantaged state. For example, you can set up a Nevada corporation or a Wyoming corporation. You will need a registered agent who is local in whatever state you incorporate in. If you are setting up a Nevada corporation, you need a Nevada registered agent. If you are incorporating in Wyoming, then you need a Wyoming registered agent.

It is best that the Nevada corporation or the Wyoming corporation does not have the same shareholders, directors, and officers.

Funding corporation

After incorporating a corporation in your home state and a corporation in a tax advantaged state such as a Nevada corporation or a Wyoming corporation, you can start funding the Nevada corporation or Wyoming corporation with capital.

You can fund the Nevada corporation or Wyoming corporation by purchasing shares or lending money to the corporation. Make sure there is plenty of legal paperwork to show how you are lending money to the corporation or purchasing stocks. If you are lending money, make sure it is proper. For example, you receive interest as any lender would. You lending money to your corporation must be in the same way as you lending money to any third party corporation.

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