The Best State to Form an LLC

Garrett Sutton has worked with small business owners to have the inside track on how entrepreneurs can best secure their future by taking on the right clients and avoid and dismiss those that will empty your coffers, badger you into concessions and waste your time. By helping entrepreneurs to define success and avoid the pitfalls of running a business, Garrett Sutton's books provide the ultimate guide to achieving a thriving American Dream by clarifying the paperwork and processes needed by entrepreneurs. Owning your own business is part of the American Dream, but most business owners don't have the expertise to determine how and where that business should be set up to protect themselves against lawsuits and liability. Garrett Sutton explains how owning the right entity (LLC, Corporation or Limited Partnership) and maintaining it can set you up for success and a prosperous future for years to come.

The Best State to Form an LLC

In this Whiteboard Lesson from Corporate Direct, Garrett Sutton explains how forming LLCs in different states can offer stronger protections for your personal and business assets. He answers two key questions that business owners often ask as they begin to form corporate entities, and provides examples of how these concepts work out practically. What state LLC should I use to hold the real property? You should often hold property in an LLC in whichever state you are doing business. State law will be applied in the case of an inside attack (such as when a tenet sues their property manager), and having an LLC holding property outside the state doesn’t change things. If you have property in multiple states, it’s advised to simply form LLC’s in each state you do business. Then you should form a Nevada or Wyoming LLC to hold the interests of your multiple LLCs. Why use a Nevada or Wyoming LLC for holding the interests of the other LLCs? Nevada and Wyoming are considered “strong states,” meaning they have great charging order protections, and they even protect the interests of a “single-member LLC.” Most other states will not issue a charging order for an LLC with one owner, which means in the case of a lawsuit against you personally (such as in a car wreck), a lawyer could gain access to your business assets. However, in Nevada and Wyoming the court would issue a charging order, meaning you would only be responsible to pay distributions on whatever you personally receive from your LLC. Often lawyers will avoid this option because it takes too much time and effort for little payoff. If you would like to learn more about LLC protections visit https://www.corporatedirect.com to learn all about the advantages of an LLC. Looking for more great information about asset protection and incorporation? Sign up for the Corporate Direct Newsletter and stay informed of key changes in asset protection laws and practices. Thank you to C Suite for the opportunity to share this here with the C Suite network.

The Best State to Form an LLC

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