The choice of the entity you use for your business operation may have subtle but profound effects on you, your assets, and your overall asset protection system. Your strategic plan must also consider the tax ramifications of these asset protection choices. Remember that there is no cure-all. This requires a balancing and weighing of the benefits of any particular device, and its effect on the overall asset protection structure. The business form you use is an important aspect of your asset protection strategy.
Trusts comprise another valuable asset protection device.
As an example, you may decide that the most appropriate business form for you is a corporation. Thus protecting your personal assets from business creditors. However, the corporation's stock is a valuable asset that a personal creditor could take to satisfy a judgment. Therefore, the stock of your corporation could be placed within a trust to protect business's assets from your personal creditors. Various trust types, both domestic and international, may be used as devices to invoke asset protection, privacy, and tax timing strategies.