First Step to Asset Protection
Setting up an LLC
From this day forward why not make a decision to transact financial business as a business entity.
*Removing personal Liability is the KEY
- Your household functions as a business; it does accounts payable, accounts receivable, purchasing, and the cash flow is a paycheck or a pension.
- You can name your household and call it “XYZ” LLC; (The LLC takes on the financial liability, not you)
- So, you will only be a person to your friends and family, When it comes to financial business You will act on behalf of your Household LLC. (you have been doing this all along except you have been taking on personal liability by using your name, instead of putting the liability where it belongs; Your Household)
- Your “Household” can have financial accounts in it’s name instead of yours, and will hold the title to your assets, (instead of using your name which makes you personally liable)
- For the rest of your life carry out the business of your household using the LLC account for all purchases; small or large, titled or untitled (everyday buying and purchasing will be the same, only the names are changed to protect the innocent; e.g. your name is now the LLC name.)
- Use the household “XYZ” LLC account for all financial transactions and purchases; If something requires a title and you title it in the name of the LLC, there is greater protection from personal liability, it’s that simple.
- Under this suggested system, your LLC acts as a HOLDING company ONLY. It will “shelter” or umbrella your assets, and should not incur any additional taxes. Because it is NOT buying and selling to the public… It is sheltering your ASSETS, only.
- Now if you want to place you’re currently titled items such as your car or investment properties that are titled in your name. You may be able to do so without changing any existing paperwork. By a simple document called a “Corporate Resolution”, you may assign your car or investment property to the LLC, it’s that simple.
- We have a 30 page operating agreement example we have used, which was written to help protect everyone in the LLC. The document outlines this protection in detail, and can be written to the point of protecting your children from taxes and probate in the event of your demise.
- Remember, when you structure yourself in this fashion, you own this LLC anonymously. This way you control everything in the LLC and no one will ever know what your assets are. Just as the wealthy… as the saying goes, “The wealthy own it all but own nothing at all”.
- Not all LLC’s protect you, even if an attorney set it up. Our suggestion is it has to be done this way. This is the way of the wealthy and corporate America.
*if you own your own business you will do the same thing for your business. You want to keep your personal business and your company business separate; because, when you are buying and selling to the public you have taxes such as quarterly and sales tax (because you are dealing with the public). However, you can place the business LLC into the “Homestead” “XYZ” LLC, because this is an asset.
Building Business Credit
Remember, you are now building business credit like the “big boys.” NO MORE Personal Credit, it failed You! Don’t get caught up using it again. It was designed to manipulate you, not benefit you.
*Personal Credit and Business Credit have no relationship whatsoever.
- Using the Personal Credit System Keeps you LIMITED! Yes, limited, as well as both personally and financially liable.
- Don’t Go back there!
- Grow your business credit without personal liability. Personal liability destroys lives, remember this.
- You always want the LLC to be liable for all debts, never You.
- Personal liability got you in this mess; so, lets start using Business liability to get keep you out of any future mess.
- What the Personal Credit system recognizes as a DEBT, The Business Credit system recognizes as an ASSET; (assets can be a liability)
- (You are trading in Debts for Assets. Doesn’t that make more sense; To have more assets than debt?)
- So, why would you want to stay on the Personal Credit System knowing this?
Example: Coca Cola owns all the trucks in their company; they are an asset to the company because they deliver Cokes to generate profit. Yet, it’s a liability because they require maintenance. Just as the car you are driving, Your Household needs this to generate cash flow. (it’s now an asset not a liability)
It will take about 6-18 months up 2 years to build business credit. While it will it take 5 years for the derogatory marks to be removed from your personal credit, which we suggest you avoid using again. Because with Business Credit the Sky’s the limit, you are in control without any manipulation from anyone.
*These steps provide the maximum protection for you for a lifetime from Creditor, Predator or Your Mother.
Third Step to Asset Protection
(Property, Vehicles, Bank Accounts & Wages):
- Property / Vehicles: In some rare cases where a collector or creditor ignores the law and decides to sue, asset protection will block them by protecting your property. With help of our consultants, you can set up a company in your name to be the owner of a lien which will be placed on your property and vehicles; thus, blocking any creditor/collector and protecting the equity in your property(s). This helps you to be judgment-proof.
- Bank Account: Your company also acts to create a “holding company” bank account in a business name to replace your personal bank account and protect you from bank levies/freezes.
- Wages: There are currently 6 states where wage garnishment is prohibited or severely restricted: PA, NC, SC, TX, NH, FL. Other states vary depending on your circumstances. For how to protect yourself in this phase call us and speak with one of your consultants.
Property (Equity) Protection
What makes your property valuable and attractive to creditors and collectors? The Equity or difference between your home value and mortgage balance. Your home equity is what’s at risk, and, if not protected, creditors and collectors can place a lien on your home equity through a court judgment (unless you live in a homestead exemption state) which must be paid with the profits after sale or refinance of the property. In rare and extreme cases the judgment creditor can force a sale on your home if unprotected.
If you happen to live in a state where the laws allow for a homestead exemption, then the equity in your primary residence may already be protected, in some cases up to 100%. Check the website map to get the specifics for your state.
So how do we protect this “equity” in your home from the thieves? Simple: By creating a lien of your own before they do, using the same legal and effective system they use on you:
- You will set up a company (LLC)\, in which you will be the managing member, with a strong operating agreement (the key to a secure LLC). (We will provide an operating agreement example for you to follow.)
- Your company will then either place a lien on your home, thereby, taking claim on the remaining equity, or you can file a quit claim deed transferring ownership of the equity to the company.
- In the both examples, the mortgage note, (owned by your company), or the quit claim deed, is recorded with the county recorder’s office.
- For the mortgage note to show valid and active status, 2% of this lien amount must be paid to your company every 3 months. This money can then be withdrawn from your company account upon clearance and used again in 3 months, and so on.
- In most circumstances, your company will not have any tax liability as it is not engaged in any sales of goods or services, and will be considered a “disregarded entity” by the IRS.
In this way we create a legal, active and effective “shield” around your home equity, thereby, blocking any future judgment liens.
Go to the following link to read more about starting a corporation http://freedomfromcreditors.com/index.php?option=com_docman&task=doc_download&gid=368&Itemid=107
This section applies to protecting vehicles (cars, planes, boats, etc) which belong to you, in other words, the vehicle is paid off and you own the title.
The chance of creditors and collectors claiming your vehicles as payment for debt through a court order is uncommon and highly unlikely, yet possible. The risk increases significantly if your vehicle is rare, exotic, or antique, in other words, if it has above-average value and/or appreciates in value.
- Once you have created a company, it is time to place a lien on your car, thereby, blocking creditors/collectors from attaching their lien(s).
- A free option is to change title to another person in your family (not a spouse), obviously someone you can trust and someone who isn’t at risk of lawsuit. Another option is to change the car title to your company name, however, this may involve changing your insurance policy to business use, and incurring a higher insurance premium along with extra fees with your state’s DMV.
Checking Account Protection
Before explaining how your new company will protect your checking account, let me explain a few important points to keep in mind for banking safety:
- Better Safe Than Sorry: We always recommend keeping just enough money in your checking account to pay your monthly bills, and no more. This is for the simple purpose of avoiding greater losses in the very likely possibility of a bank closing due to financial panic, act of “terrorism”, national emergency, other scare tactics, or natural disasters should occur. “Better safe than sorry” is our mantra in such unstable economic times. Think a bank closing isn’t possible? There have been over 200 federally closed and ceased banks in the last 2 years alone.
- Boycotting the Big Banks: Considering the risky and speculative money games the “BIG BANKS” have played with your money, along with their close involvement in helping deregulate the economy, we urge you to consider keeping whatever money you do have with smaller and safer institutions such as local community banks and credit unions. For more info on this, see Moveyourmoney.info. Also, to check the strength of your community bank/credit union visit: Bank Strength Ratings
- Regarding “Safe” Deposit Boxes: The concept and name “safe deposit box” is a complete oxymoron, contradiction, and hypocrisy. Why? because the banks will not hesitate to restrain and seize the items in your safe deposit box when served by a restraint order from the courts. It happens every day when attorneys sue and win. So do not let the name “safe” deposit box fool you. If someone in addition to you and your trusted ones has access, it’s not safe.
Now to explain why your personal bank account is at risk and how you may use the company you created to open an “asset guarded bank account.” Creditors and collectors suing you personally aren’t able to freeze a bank account which is not in your personal name, that is one reason why we are helping you with the right documents to open a business account, which can be used to replace your personal accounts. Here’s how it works:
- Once you have all necessary documents: Certificate of Formation, Articles of Organization, Operating Agreement, Tax ID, Certificate of Good Standing, etc.
- You select a secure bank of your choice and request the teller to open a business account (be sure to ask about any fees involved in having a business account).
- Your new bank account will not have any tax consequences as the money you deposit into it will be your personal income, in other words, it’s money from which taxes have already been deducted, also, the business does not engage in any sale of goods or services, so there is no business income to tax. (* We are willing to speak with your accountant if they have any questions regarding this).
- You may deposit checks made out to your name, even though the bank account is in business name. This is because you are listed as the signer/owner on the account, therefore, most banks will clear checks in your personal name.
Wages are one more avenue through which the creditors/collectors may “steal” your money if they obtain a judgment against you. When I say wages, I mean your paycheck or your earnings as a W-2 employee. 99% of all Garnishments are done against wage earners and not self-employed individuals. Why? Because it is much easier for the judgment creditor to deduct a portion of your paycheck through payroll with a court ordered “writ of garnishment”, before the check is cut, as opposed to coming after a check of self-employed persons who pay themselves and may have additional partners involved.
So how can you be protected from wage garnishment if you’re a wage earner?
- If you live in PA, SC or TX your wages should already be protected from garnishment by state law. These three states strictly prohibit any wage garnishment except for some government monies such as child support, taxes, or alimony, etc.
- If you live in FL, NC or NH, then your wages are also protected, but not in all cases. In FL there is something called a “Head of Household” exemption which can be applied for in order to protect wages. In NH wage garnishment is limited by a strict legal process, making it more difficult for creditors to garnish. Most other states can garnish from 10-25% of your gross earnings monthly or weekly if not protected. In NC wage garnishment is usually done only if the debtor has substantial funds on deposit and has no dependents. Check your state garnishment laws in the Member Resource Section Library.
- If you happen to be in one of the states which does allow wage garnishment you may qualify for a Wage Exemption Consultation where we will instruct you on the benefits of the Wage and Salary Protector Program.