Postal Plus Express

3300 South Decatur Blvd, Suite 10; Las Vegas, Nevada, 89102-8153

You and Identity Theft
What can you do to protect yourself?

This subject is a complex legal discussion so be certain to discuss the details of your situation with a licensed attorney. The information presented in this section is watered down compilation of numerous news articles and sources. Consult an attorney for specifics. For this discussion, Corporation and LLC can be assumed as interchangeable.

You now have your Nevada Corporation - you are now safe from lawsuits and asset seizures.

Well, that is the myth. Everyday people file new Nevada Corporations or LLC and assume that once the corporation is set up and they have a checking account in the name of the Corporation, they are safe. All their affairs are being conducted 'by" the corporation and Nevada's Corp Laws prevent corporation piercing to obtain personal assets.

This is rather untrue. Regardless of Nevada, or Delaware, or Wyoming or anywhere else, a corporation is truly only a corporation if it follows the Rules of Conduct for being a corporation. Among the rules of conduct that is most often broken is a lack of a Corporate Records Book or Manual.

A Corporate Records Book or Manual {here after just Records Book} is a location to store the decisions of the Corporation. [A large corporation will have a lot of books or a filing cabinet(s)] Store the decisions? That makes no sense. Well is does when you realize that a corporation is not a stand alone thinking, breathing, acting individual. It has no memory bank. The storage of the corporation's actions is done via Resolutions.

The Board of Directors - hired by the stockholders to direct the affairs of the corporation - propose, discuss, vote on and pass Resolutions. The resolutions then become the orders for the corporation to conduct one or more business activities. i.e. The Board will pass a resolution for the purchase of land for the construction of a new corporate Headquarters. This, once properly passed and filed in the records book, becomes the authority for the corporation to issue checks, cash, stock or other assets to a third party for the purchase of the land.

Now take the same situation but without a completed Resolution. The corporation spends $100,000 on a piece of property and then for unrelated reasons files for bankruptcy. An investor in the company is going to want to where the $100,000 was spent, why it was spent and why it was not used to pay other bills or for other business activities.

Of course, you answer this with 'This is my personal company, I am the only investor and the only officer (of the company) and so I know where and why the money was spent." That is true. But if you land in bankruptcy, the judge is going to be asking YOU about your spending habits. And here is the rub that catches most people in trouble - either in bankruptcy or with the IRS - if there is no resolution authorizing the company to spend the money, the courts and/or the IRS could rule that you were spending corporation money as if it was personal money and thus there is no difference between the corporation and you. And yes it happens, even in Nevada with Nevada's Corporate Shield Laws.

As you can start to see, there is more to "having a Nevada Corporation" then just having a Nevada Corporation. Other sections will explore other issues so please check back often for more information.

Telephone (702) 368-4694 or Fax (702) 555-1212
3300 South Decatur Blvd, #10, Las Vegas, Nevada, 89102-8153
Located in the Decatur Inn Plaza on the Southeast corner of Decatur & Desert Inn.

Also in our shopping center is The Pizza Boy - Pizza and Sandwiches; Beacon Pointe Insurance - An Independent Insurance Agent; VIP Floral Designs; Dr. Wong's Desert Back Chiropractic; SK Smoke Shop; Asian Touch Massage and George Blackwell's State Farm Insurance

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