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Updated about 16 years ago,
LLC's--is this info accurate?
A friend of mine went to one of Robert Kiyosaki's 3-day workshops, & one of the things she shared w/ me from the seminar was this:
"The best information we got was the reason to incorporate, preferably in Nevada. We were told to first open a C or S Corp. and then an LLC (LLP?). Put your personal residence first
into the C or S Corp and then move it into the LLC. That way if someone sues you they cannot even locate the house to try to take it. He also told us to make yourself the beneficiary of the LLC and your attorney the trustee. That way if you have to go to court, as he did, you can claim the 5th and not give them the information/access to your assets, and your attorney can exercise the attorney/client privelege and cannot be forced to give them the information either. Our son said that one of his coworkers had done very well with rentals until one of the residents learned of her holdings, sued her and got it all. She acknowledges that she messed up and should have opened the corporations regardless of the cost as she lost it all. If you have a corporation that you open in Nevada it is much cheaper and taxed at a lower rate. You can still do business in CA but you need to know how to do that without having to pay the much higher CA taxes if CA finds out you are doing that."
Is that accurate? Is that the way to protect yourself in the event of a lawsuit when owning property?
Dave.