Protections Beyond Delaware & Nevada
All too often the run-of-the-mill advisor or advisor lacking updated information (again, even lawyers) will simply organize your one or two LLCs in Delaware or Nevada without conducting any legal research on what states may currently offer more protection and less stigma. For instance it is possible, while still staying within a U.S. jurisdiction, to form an entity with the following advantages:
- no state income taxes
- maximized privacy
- shareholders/members/officers are not listed with the state
- additional asset protection laws
- nominee officers are legal and offer an additional protective layer
- citizenship not required
- state tax not being considered
- draw less attention than Nevada and other states
- no Nevada “stigma”
- lower startup costs
Dividing, Multiplying, & Layering Up Your Protections Against Frivolous Lawsuits
Be aware that most advisors will suggest throwing your business (and even personal) assets into just few different entities. Why stop there? With a comprehensive plan you have additional layers of protection by establishing multiple entities for certain divisions of your business, further isolating your assets and minimizing your liability.
Why not add an additional layer of protection? You can have master entities to further shield the divisional entities. Under particular circumstances, you can maximize your asset protection by having your lawyer design multiple master holding entities to further shelter your medical practice. Again, the selection of the entities would depend upon a multitude of factors, including but not limited to: your type of business, your business goals, and your asset protection objectives.