Forming an LLC

[Danny Cerecedes]

Has anyone formed an LLC using the Nevada Corporation Headquarters. I'm looking to create one there for the corporate veil protection but I've never done one before and I'm hoping for any insight BP has??? Specifically to protect my business assets from my personal assets.

[Hattie Dizmond]

I love baseball!!

disclaimer...I'm not a lawyer and this isn't legal advice!

The idea of the 2 LLC structure is more obfuscation than anything else. The corporate veil is achieved with a single LLC, and it doesn't need to be in a different state. What you achieve by layering is making it very difficult for people to figure out where the money is. Why?

Because in civil cases lawyers work on contingency. Unless you're dealing with a case of true, obvious negligence, a lawyer is going to want to know there are assets to attach, before they will even take a case. By making it difficult to find assets you make it less than enticing to sue you. Combined with an umbrella policy, it's powerful protection. 

As far as the structure, your personal assets are separate from the LLC assets and liabilities, unless you do something to pierce the corporate veil. I recommend putting all your personal real estate in blind trusts. Your holding company LLC (TX or NV) should hold the title to all your property. However, your Holding company's name should never appear on any transaction. Your operating LLC is the LLC that you do business through, but even then the business is further obfuscated by a DBA.

Again, Lone Star Land Law explains it much better than I can, but that's the idea.