Domestic Asset Protection Attorney
International Asset Protection Attorney About us FAQ Books & Publications Seminars Links & Resources Contact Us
Corporations
Limited Liability Companies
Limited Liability Partnerships
Limited Partnerships
Asset Protection Trusts
Domestic Asset Protection Trusts
Equity Stripping
Financial Planning Exemptions
Tenancy By The Entirety
Charging Order Protection
International Entities
International Trusts
Captive Insurance Companies
Business Entities
Contract Formation and Review
General Business Counsel
Business Succession Planning
Current Estate Plan Review
Drafting Wills and Trusts
Incapacity Planning
Probate Administration
Charitable Remainder Trusts
Online Asset Protection Quiz.

What is the best way to protect S corporation shares?

It is far more difficult to protect S corporation shares than C corporation shares. That is one disadvantage to the S corporation. Although C corporation shares can be protectively titled to limited partnerships, irrevocable trusts or other entities; these methods are, unfortunately, unavailable to protect S corporation shares. S corporations cannot be owned by these entities or the corporation will lose its S corporation election. It is then far more difficult to lawsuit-proof S corporation shares because of its ownership restrictions. However, S corporations can be owned by single-member domestic or international LLCs (which are taxed as disregarded entities). S corporation shares can also be owned by a sub-trust of an international asset protection trust – although this arrangement is more complex. Another option is to title S corporation shares to a husband and wife as tenants-by-the-entirety if their state T/E laws are sufficiently protective. Finally, for protection, you may encumber or pledge your S corporation shares as you would encumber C corporation shares or any other asset. Again, the method we use in any given case depends on the circumstances.

Categories: Asset Protection
The Presser Law Firm, P.A. - Asset Protection Attorney
Located at 6199 N. Federal Highway Boca Raton, FL 33487. View Map
Phone: (561) 953-1050
Website: