Asset Protection 101

Posts Tagged ‘multiple corporations part 2’

Your Nevada corporation or Wyoming corporation lending money to your home state corporation:

In order for your home state corporation to conduct business in your state, your corporation will need some funds. Your Nevada corporation or Wyoming corporation can send your home state corporation a letter of solicitation advertising for loans. Your home state corporation then fills out a loan application form and send it back to the Nevada corporation or Wyoming corporation. The Nevada corporation or Wyoming corporation then sends a letter of loan approval back to your home state corporation with a promissory note to execute.

Your home state corporation then executes the promissory note and send it back to the Nevada corporation or Wyoming corporation along with appropriate documents.

Nevada corporation or Wyoming corporation leasing equipment or real estate

The Nevada corporation or Wyoming corporation can also own a plant, factory, or real estate and lease it to your home state corporation. The Nevada corporation or Wyoming corporation can also charge your home state corporation for marketing or business consultation services. The key thing is to have the Nevada corporation or Wyoming corporation charge your home state corporation for legitimate services.

Not owning anything is a great asset protection strategy

If you own assets free and clear, people might sue you for those assets. Instead of owning your assets outright, you should set up a corporation to own these assets and you could lease them from your corporation. That protects you from losing assets in a lawsuit. Not owning anything is a great asset protection strategy. After all if you get sued, what can the plaintiff get if you don’t own anything?

The reverse is also true. If you corporation owns everything but does nothing, then no one can sue the corporation since it does nothing. Having a corporation owning everything and does nothing is also an asset protection strategy.

Taxation of home state corporation

If the only income the home state corporation receives is loan money, the home state corporation does not pay taxes.