For lawsuit protection should I privatize my ownership in the corporation?
Posted on Dec 5, 2016 4:20am PST
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.