“Many times when these corporations or LLC’s are sold, the buyer is told that simply because the entity was formed and registered a few years ago, it has more value because it’s an ‘aged’ corporation,” said Ellsworth. “Buyers are sometimes told that the aged nature of the entity makes it more valuable for things like getting a line of credit, or just general credibility. It does not, and so that’s a serious misrepresentation.”
I love the quote above from officials from the state of Nevada. Nevada’s fraud problem, especially as related to asset protection and corporation sales is finally being addressed in a very real way, in fact they have a whole new “task force” out looking for people misusing the the state’s laws to commit fraud or sell bogus legal planing under false pretenses.
THIS IS GOOD!
Why? Because it helps eliminate fraud and misrepresentation by lawyers and non-lawyer “mills” that sell these things with no regulation or consequence and stops the misuse of legal tools by crooks that want you and I to pay their share of taxes, avoid the law and use shell corporations for fraudulent conveyance, the number one requested use.
Q: I thought you always say “old and cold” is better and that you love aged corporations and other entities?
A: I do, but that’s because corporations that you have owned, run, and have properly funded and maintained for some period of time are typically strong, have records and can illustrate business purpose and usage – THIS MEANS THE LEGAL PROTECTION WORKS.
This is different from the use of a shelf corporation, an old entity that someone recorded somewhere and that has typically been just barely funded and operated if at all by a third party who often promises to pass it to you “in secret”.
THIS SOLVES NO PROBLEMS FOR MOST PEOPLE – as they are typically funded too late, so even if the corporation itself is old, your assets being inside it is not, and if you are being sold this as a solution to an existing exposure you are still committing FRAUD.
Thanks, Ike Devji
See the Article here: