Asset Protection StrategyMany people form LLCs for asset protection. The biggest misunderstanding is that this just protects everything. The biggest problem is who is protecting the LLC from the members? You (The members,) are the ones out there driving around each day, causing accidents, having personal debt and credit cards, and getting divorces. So you have a LLC that has assets in it, and you have personal problems, in most States the court can get to your membership interests and you can lose everything.
So the biggest problem in LLC asset protection is that most States don’t protect the LLC from the members. The Wyoming LLC protects the LLC from the members. Right now, Wyoming has the best laws for this. In Wyoming the “Exclusive remedy” is a charging order of the members’ interest. But this does not give the creditor the ability to dissolve, run, or demand a distribution of profits. Thus keeping the members ability to keep the LLC up and running as well as the assets staying put in the LLC. The fact that Wyoming puts the words “Exclusive” in its laws is what separates the Wyoming LLC from other popular States like Nevada, Delaware, New Mexico, and Florida.
So what do we do for LLC asset protection? We act as registered agent for LLCs in every State. So we don’t care where you form your LLC. We would love to be your registered agent. Every LLC has to have one. LLC asset protection strategies can be very over complicated. There are many firms that specialize in this, and if that is what you are looking for we could recommend a few that use us for registered agent services that could navigate you through the process. We also can schedule you a phone meeting with our local Wyoming asset protection attorney in our Wyoming office. He charges a lot, but is very specialized in LLC asset protection.
A simple LLC asset protection plan is to just establish a Wyoming LLC and hold your assets in it. Keep your personal name off public records like the DMV, County assessor, stock investments, and mutual funds. An LLC is not overly complex. You don’t have to hold meetings each year, and tax wise, the profit flows down to your personal tax return very easily. One LLC is a simple strategy for asset protection.
So most of the time, just setting up a simple LLC and putting your assets in the LLC can keep your personal name off of public records, thus making it harder for people to know what assets you have.
In Wyoming, the Wyoming LLC can be anonymous. We don’t have to list the members or managers on the Wyoming LLC articles of organization OR the annual 50.00 report due to the Wyoming Secretary of State. This is very beneficial to you. Please see our asset protection page for more details.
Another great thing about the Wyoming LLC for asset protection is the default laws. The default laws without an over complex LLC operating agreement offer great protection. There are some specific things you can do with a Wyoming Close LLC that could attempt to help you with estate taxes. Tax planning is a different strategy than asset protection with an LLC. The federal government is going to get their money from you one way or the other. Our goal for our clients is to have a simple LLC asset protection strategy that keeps people from having their personal name out there more than they have to.
We charge $100.00 to set up a Wyoming LLC. So for a total of $325.00 you will have simple Wyoming LLC asset protection. If you need additional help with transferring items into your LLC, we charge 150.00 an hour, or you can use our local Wyoming attorney to handle your transactions. But most people just do this themselves with our free LLC forms such as our LLC capital contribution forms.
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