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Incorporating for Asset Protection

Asked by: Joe  — 20 February, 2012

Is it a good idea to incorporate for the sole purpose of protecting assets even if you don’t have an actual business?

Answered by: admin  — 20 February, 2012

Dear Joe,

Forming legal entities such as corporation and LLC for asset protection only has long been an accepted practice.

One of the notable examples is forming a NM LLC for the purpose of owning one’s car (this way the identity of the real owner of the car is hidden by the fact that NM LLC does not list members publicly). Another interesting example I know of is forming Close LLCs/Corporations in order to protect family assets from estate taxes.

I would recommend you to consult an asset protection attorney who would be able to give you more information on how to use various legal tools in order to protect your assets.

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