Why Set Up A Nevada LLC?

by Bruce Givner on October 20, 2011

We will often set up a Nevada LLC, even for our California clients.  Why?  A Nevada LLC provides a distinct advantage over the California LLC. Under California law there is at least the theoretical possibility that a judgment creditor of a member of an LLC can – once a charging order is unsatisfied – move to foreclose on the membership interest. This cannot happen with a Nevada LLC. Even though that threat is realistically an empty one under California law, because foreclosures are unsatisfactory to creditors. Nevada law does not allow membership interest foreclosures.  So Nevada law is even more unattractive to a creditor, and a Nevada LLC can be even more attractive to a client.  And our job, in asset protection planning, is to put as many layers as possible between your assets and some potential future creditor.

Will a California judge, in a lawsuit between a California plaintiff and a California defendant involving a Nevada LLC with California assets apply Nevada’s law?  We don’t know.  However, it can’t hurt to put up another hurdle that the creditor may have to overcome in trying to reach your assets.  www.GivnerKaye.com (310) 207-8008

{ 4 comments… read them below or add one }

Debrah October 27, 2011 at 12:37 am

Times are changing for the better if I can get this online! I never knew where to set up my llc. Nevada it is!

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Kaydi October 29, 2011 at 5:04 pm

Extremely helpful article, please write more.

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Ezequiel Schemmer November 2, 2011 at 8:48 am

Hello. Great job. I did not imagine this. This is a fantastic story. Thanks!

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admin November 2, 2011 at 9:27 am

You are very welcome. Do you need assistance setting up an LLC?

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