Asset Protection

The corporation is traditionally the first line of defense in any Asset protection strategy because of the long record of statutory and case law that supports the goal of achieving limited liability. This liability protection is only available because of the way the law separates the corporation from any associated individual. The lawsuit protection features of the corporation will generally be available only if the integrity of the corporation as a separate and distinct entity, apart from the individual, is respected by a court and by the Internal Revenue Service. The “corporate veil” refers to the separation between the individual and the company. It is the most valuable quality that the corporation offers. Care must be taken to preserve the corporate veil, because if it is “pierced,” the corporation may have no asset protection value whatsoever. In matters involving a lawsuit by an injured party, especially if a corporation has no significant assets, the plaintiff will attempt to convince the court that the corporate entity should not be respected and that the principals of the company should be held personally liable. In these cases, the plaintiff is attempting to pierce the corporate veil in order to obtain a judgment against the principals, who may have personal assets sufficient to satisfy a judgment. In these turbulent financial times it is more important than ever to establish an effective asset protection strategy. Silver Shield Services, Inc. can guide you through this important process. Give us a call at (775) 577-4822.