Nevada Corporations Owners No Longer Private: Corporate Veil Still Powerful

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The State of Nevada has made a change in the privacy rules. State of Nevada still powerful in its pro-business stance. Those who have relied on bearer shares or other means to protect privacy may need to review corporate structure.

When it comes to protecting your hard earned assets you want every advantage possible.

Bowing to pressure from several courts, the IRS and other governmental agencies, the State of Nevada has announced that it will enact certain reforms that will balance its pro-business stance while curbing alleged abuse by suspected individuals and firms who have misused Nevada laws in order to hide assets and identities.

Scott Letourneau, CEO of Nevada Corporate Planners, nationally known expert on how to incorporate in Nevada as well across the country, has written and spoken often about the misapplication of Nevada law by those touting bearer shares and use of nominees to hide identities.

Quoting Letourneau from a recent seminar for entrepreneurs, "When it comes to protecting your hard earned assets you want every advantage possible." Letourneau also agrees with the Nevada Secretary of State in that it appears promises are often made to those who incorporate in the State of Nevada that there is a level of privacy for the owners of a corporation or LLC that will help them in case of a lawsuit and that if they get sued no one will find out who the owner of the corporation or LLC may be. While touted as a means to prevent them from being the target of frivolous lawsuits, there have been cases of fraudulent acts by the incorporators as well as the companies.

Based on his knowledge and experience, Mr. Letourneau has found that the challenge in the creation of rock solid asset protection plan should not rely solely on the illusory promise of privacy through the use of Bearer shares (which don't work) and nominees (which work to a certain degree). Rather, to quote Mr. Letourneau, 'If the whole plan is designed to prevent the discovery of your assets to fend off a lawsuit and the corporation or LLC lacks substance; there are no employees anywhere; and no business license, the plan is doomed to fail'. In short, there is no asset protection.

Due to the abuses, Nevada is banning the use of the bearer shares and taking other remedial action, all of which are aimed at reducing the fraudulent actions but maintaining the State of Nevada's Pro-Business stance. However, Nevada is still powerful in the protection of the corporate veil. Those who have relied on a scheme like bearer shares or other disallowed actions for privacy should investigate what changes are necessary under the new Nevada laws. To learn more about these changes or to find other valuable information, visit Nevada Corporate Planner's website at http://www.nvinc.com/research

If you would like more information about this topic, or to schedule an interview with Scott Letourneau, please call JoAnn Gould at 702-367-7373.

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