Nevada Asset Protection

The Nevada Limited Liability Company is the primary entity used for Nevada asset protection. Unlike in many other states, A Nevada LLC does not require a business purpose to be formed. Currently, 14 states (California, Indiana, Iowa, Louisiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, Texas, and Virginia) require a business purpose in order to form an LLC. Because of this, an LLC formed in these states cannot be used to hold an asset to protect it from creditors, unless that is deemed a business purpose in that state.

A Nevada LLC can be operated as “an investment holding company” or “an investment management company” and simply “hold and manage” assets. In this way “personal assets” can be protected from judgments. Nevada has the strongest asset protection laws in the United States.

Cash, investment securities, notes, receivables, investment real estate, a personal residence, patents, trademarks, copyrights and shares in a closely held corporation are all eligible for protection. In exchange for transferring assets to the Nevada LLC, you receive a membership interest.

A Nevada Limited Liability Company used in this way is a very powerful asset protection tool. Many wealthy people spend tens of thousands of dollars developing complex strategies to protect assets. For the average person with moderate assets, this strategy is affordable and extremely effective.