The privacy laws are incredibly strong in Nevada. There are companies that will answer the phone for your company, take notes, hold shareholder meetings, keep records and have a physical location (in a box on a shelf in a closet) as your Nevada address. I like the concept.
vittorio nicosia said:
Mr. Cotten, do you have a reason that you believe that Nevada is better than Wyoming for a LLC?
Buddy Cotten said:
Dear Mr. Nicosia,
As someone who is out of their element, I might suggest that a LLC is formed that is owned by a Nevada (shoe box) corporation. That may help in many ways, including privacy.
The privacy laws are incredibly strong in Nevada. There are companies that will answer the phone for your company, take notes, hold shareholder meetings, keep records and have a physical location (in a box on a shelf in a closet) as your Nevada address. I like the concept.
Mr. Cotten, do you have a reason that you believe that Nevada is better than Wyoming for a LLC?
Buddy Cotten said:
Dear Mr. Nicosia,
As someone who is out of their element, I might suggest that a LLC is formed that is owned by a Nevada (shoe box) corporation. That may help in many ways, including privacy.
In my experience, the administrative simplicity and pass-through options of LLCs make them a superior choice to FLPs in the majority of situations. I believe that for estate planning and tax purposes an LLC should be able to achieve the same objectives as an FLP. Unless you consider yourself a very sophisticated mineral owner and plan to have yearly legal attention to an FLP, I would go the LLC route.
LLCs are far easier to manage than FLPs. As with any kind of limited partnership, the wrong missteps by a partner can jeopardize the limited liability for himself or even for the whole partnership. This is usually less likely for LLCs.
Louise Tario said:
Thank you for the response Buddy. Are there obvious reasons that I am missing why I can't achieve similar benefits with an LLC? The formation costs associated with the LLC are less expensive and seem to be somewhat of a norm. Any additional thoughts or advice is appreciated. Thank you!
This is correct. All business entities, including LLCs and FLPs, are governed and regulated at the state level. Tax and estate issues will be relevant at both the state and federal level.
Reagan "R.T." Dukes said:
I wish I could be eloquent with legal language, but I think your question is answered in that companies are incorporated and regulated at the state level. (Texas Secretary of State and the like elsewhere)
Federal rules become important for tax purposes.
At the end of the day, everyone wants the entity that allows the most flexibility for their situation and they want the entity that results in lower taxes!