For lawsuit protection should I privatize my ownership in the corporation?

Shareholders do often attempt to camouflage their ownership interest. Yet more diligent creditors can usually identify the corporate shareholders by examining the corporate books, tax returns, licensing applications, public records and so forth. But you can somewhat privatize your ownership in a corporation. For instance, you may have your corporation owned by another domestic corporation, international corporation, LLC or trust from an international financial center that has secrecy laws. These entities can be the parent or holding company. But your lawyer must guide you on these strategies. You don’t want to commit perjury, incur tax problems or violate IRS reporting rules concerning international entities by camouflaging your ownership. And for less visibility and connection to your corporation, use a ‘nominee’ corporate officer and director. The best strategy, of course, is to protect your stock ownership, not conceal it.

Categories