Legal Question in Business Law in Nevada

incorporation

I live in Nevada and own rental properties in California which are currently in my trust. I am considering establishing a corporation in Nevada and transferring my properties to the corporation. The reason for this would be to avoid personal liability in the event of a lawsuit. My questions are:1) Would the Nevada corporation be recognized in California or would I also have to incorporate in California? 2) Can my trust own the shares for the corporation? Would this be a wise strategy to persue?


Asked on 3/26/07, 7:03 pm

1 Answer from Attorneys
James Smith James E. Smith Ltd.

Re: incorporation

Using a legal entity like a corporation is an excellent asset protection device if you have rental properties. However, incorporating in Nevada may require that you register as a foreign corporation in California if you have a lot of California rental properties. A living trust does not give you asset protection, but shares of the corporation can be put into the trust to avoid probate.

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Answered on 3/26/07, 7:47 pm


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