Asset Protection Which State Which Entity
In building a bullet-proof asset protection plan, which state is the best to file a limited liability entity, Wyoming or Nevada? and which entity would be the most effective, an LLC, LP, “S” Corp or a “C” Corp, and what would your fee be for such? MHM
When looking for asset protection, there is not a “best” state to file a Limited Liability Company (LLC) in any more. It used to be that Nevada and Delaware had more favorable laws. However, all states have now made changes in their laws so that they work just as well. No state wants to lose this revenue. In fact if you file in a foreign state (a state other than your own), most states tax you anyway. Now it is best to file in your own state. It is often more costly to file in a foreign state, because of additional fees and double taxes.
Which entity has the best asset protection? The entity that would be most effective depends on what you are trying to accomplish. For instance, if you are holding a piece of rental property an LLC is usually a good choice. If you plan to grow a huge company and go public you will need a corporation. Often it is a good idea to visit with an attorney and get help to pick the best entity for your business. Attorney’s fees for choosing and drawing up the forms for a legal entity depend on hours involved. If you want to go through this discussion in detail and then make your own forms get my LLC Wizard Course.
