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WYOMING
invented the American LLC in 1977, as it was modeled after the
German Gesellschaft mit beschrnkter Haftung (GmbH).
Nevada and Delaware copied Wyoming's LLC and profited from it
most through better marketing. Wyoming LLC's offer a
strong asset protection foundation. Members are not
reported on public record.
ALASKA
LLCs are a great choice if you intend to use multiple
structures.
ARIZONA
LLCs are strong alternatives to the weak California LLC. IRAs
are protected. Otherwise, creditors have the advantage in
Arizona.
DELAWARE LLCs are well drafted and based on strong LLC
legislation. Great for big business.
HAWAII offers domestic captive insurance company
formations.
IOWA is good for debtors! Unlimited homestead
exemption, protection of certain life insurance, IRAs and
disability proceeds are exempt. KANSAS & IOWA are very much alike.
Iowa LLCs are okay.
NEVADA corporations and
Nevada LLCs are outstanding in terms of
flexibility, private control and business environment.
It's known as a haven for debtors. Problem:
Nevada LLC requires disclosures of the members, their SSN's
and date of birth every year.
SOUTH DAKOTA
has an excellent homestead exemption, as does Texas and
Florida.
TEXAS looks
out for the debtor. Limited Partnerships are
exceptionally strong in Texas and they're better than in any
other state. They have generous exemptions for life
insurance, annuities, and the homestead. Except for child
support, wages can't be garnished. Don't mess with Texas
if you're facing a debtor with an interest in a Limited
Partnership.
OKLAHOMA has
excellent laws for Limited Partnerships and Limited Liability
Companies.
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ALABAMA: Alabama may be beautiful, but it's awful if
you're a defendant in a lawsuit. They are known for
their high
jury awards.
CALIFORNIA LLCs:
California overtaxes and overbears their citizens and
strips away any possible defense from litigation.
California attracts administrative losers who feel important by making
life difficult for the small business through excessive
regulations and punitive measures. Since
January 1, 2004, California LLCs have no charging order
protection. THAT MEANS NO PROTECTION WITH A CALIFORNIA LLC! The
California court can liquidate
your member interest and hand it over to the hostile creditor.
DON'T USE CALIFORNIA LLCs!
They are defective
at best.
LOUISIANA is pro-creditor, all the way. They changed
the fraudulent transfer regulations to favor the creditor.
NEW JERSEY is creditor friendly due to their lack of a
homestead exemption and anti-debtor decisions on the transfer
of assets. They are more likely to consider the transfer
fraudulent, if timing is suspect.
NEW YORK
is very friendly towards creditors by limiting the protection
to debtors. If you live in New York, get a planner who knows
what he’s doing.
VIRGINIA & WEST VIRGINIA looks out for the creditor.
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