Aren’t those reasons important enough for you to Sign Up for this valuable business program? If there was one thing you can do for your business, this unique, one-of-a-kind program is an implementation that can’t wait another day.
DISCLAIMER: eFreedom and its affiliates and service companies provide business incorporation services. We are not a Law firm or CPA firm. We do not undertake nor intend to render legal or tax advice. As always if you need legal advice consult an Attorney. If you need tax advice consult a CPA or a Tax Attorney. All information provided is intended for educational purpose only and not to be construed as legal advice.
We actually like to set up the LLCs in Wyoming and in Nevada because unlike other states, they have very strong protections against charging orders (The court order issued by the Judge in case you lose in a lawsuit)
The best state to set up an LLC for asset protection is Wyoming and the reasons are:
No because it does not own the properties. Remember it is only giving you a loan. It does not become the owner. You do not transfer ownership.
For tax purpose the LLC is usually set up as a disregarded entity. Meaning it flows through to the owner(s). If LLC makes a profit, the profit usually flows directly to it respective members and each member has to report their share of profit on their respective personal tax returns in their state. You make periodic payments to the LLC and get a deduction. The LLC claims the income and the structure becomes tax neutral.
All you need to do is fill out the form with your name, a couple choices of LLC names, tell us the amount you wish to record as a lien to eliminate the equity in your property and/or business. And email us a copy of your property deed so we can get the exact way the title is currently vested, the full address of the property, the Assessors Parcel Number and the complete legal description. (If you cannot locate your deed you can get one on line or call the county records or even give us a copy of a Trust Deed lien (Mortgage Deed lien) that already exists on the property as a first lien because it will have all the exact info needed.
We will send you the instruction form regarding setting up a Tax Identification number with the Internal Revenue Services by phone and/or online. Once you’ve obtained the Tax Identification number for the LLC, you can contact a bank (preferably with nationwide branches) and ask them to list the documents they need to open the account. (Usually the bank needs a copy of: Certificates of Ownership, Articles of Organization and your Identification).
We will send you all the documents you need to take or mail to your county recorder’s office after you sign them and notarize them (to show your consent to pledge your property as a collateral security for the debt obligation to the LLC). The county clerk will verify that the documents have the exact and accurate legal description of the property as indicated on the deed you gave us and then he/she will record and will mail you a copy. The cost of recording the lien runs from less than $100 to a few hundred dollars based on the county fees.
Yes same exact procedure except that we will not record a lien secured by your property, we will file a UCC-1 form with the Secretary of State’s office where your business is located.
Remember that you are the Lender LLC as well as the Borrower/Obligated party. You can simply tell the title company that you want to move the LLC lien to a junior position. We provide you with a subordination clause in your lien document that states that the lien could be voluntary pushed to a junior position if the Owner of the property wishes to record a new voluntary lien senior to the existing one. Your bank giving you a credit line or a 2 release the lien before they would provide the loan, then after they record in a senior position, the title company will re-record your LLC lien in a junior position. For instance, if you want to refinance, the title company will handle all that for you and they can release the lien first then refinance the mortgage. After the mortgage lender places a lien on the property, they will re-record the trust deed that eliminates the equity in a more junior position back secured by your property to the favor of your LLC. This is the commonly accepted procedure.
You simply talk to the title company and as the LLC Managing Member and owner you can provide them with a signature to release the lien (you don’t have to release the debt) and just have them record it secured by another property or business asset that you wish to protect from lawsuits. There is no debt forgiveness and no related tax consequences.
We do not recommend having no payments. In order to stand up in court as a legitimate lien, you must make periodic payments. We place a section about a periodic payment “requirement” in the promissory note that we draft between you and your LLC to protect you in the rare case the lien is questioned. You do not want to run the risk of not showing an economic substance for the actual lien, which is the basis of the structure. After all you are making the payment to your own LLC. Of course, since the payments are made into the LLC bank account and you control the bank account, you can use these funds to pay directly for any business expense.
Trust deed loan or a credit line etc. How could I do that if the lien Although we recommend you leave this LLC intact so it does not create any liability for you, you can conduct some no to low risk business transactions such as:
The key thing is you do not want to operate a full and active business with potential liability under this LLC. And you do not want to tie it up with any other entities you may have so it can stay on its own protecting your assets as a lender from a distance.
Go to www.eFreedomIRA.com and contact Suzi or Lynn for a free consultation to make sure you can structure a Solo 401K. Each case is slightly different and if you can get one set up the benefits are phenomenal and 401K are 100% lawsuit proof.
You do not need to set up another LLC or even transfer ownership etc. We can just increase the amount of the Lien and record it secured against several properties for cross collateral (there is an additional fee for each additional lien or UCC that we have to draft for you to file and record against each asset) But the good news is you do not have to pay for any more LLCs or maintain several structures. It is only one and the paperwork to maintain an LLC is drafted once and remains in your possession and control.
When a charging order is obtained against you and is legally in place, no distribution is allowed/made to the creditor/litigant based on the Operating Agreement. The advantage of this structure with the proper Operating Agreement is that the creditor/litigant ends up getting stuck legally with a tax bill based on the amount of the charging order. This is despite the fact that no money was paid out/distributed to the Creditor/Plaintiff.The fact that they would have to pay taxes against monies they have not received is extremely discouraging to litigants and is a powerful incentive for them to either not pursue the lawsuit, drop it after starting it or settle as soon as they win for anything you offer.
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