by Structured Settlement Watchdog
Sellers of structured settlement payments can save themselves potential heartache if things go bad, by checking to see where the structured settlement buyer soliciting them is based BEFORE deciding to do business with the structured settlement payment buyer. Some structured settlement buyers are established in states with strict asset protection and privacy laws. Others draw business in using off shore or domestic websites or blogs that are Privacy Protected so you really don't know who you are doing business with.
This should be of particular concern when dealing with an unregulated or under-regulated industry such as structured settlement factoring and re-marketing of structured settlement payment rights.
When you are asked to sign a contract the contract will state something to the effect that it is between you and XYZ Company, a (name of state) corporation or(name of state) Limited Liability Company (LLC).
Consider that one company that promotes Nevada company formation boasts:
"Some states are known for their famous governors, monuments and parks….Nevada, on the other hand, is known for its strong stance on protecting the rights of its business owners, by passing some of the most aggressive asset protection and privacy legislation in the country"
Some of the bullet points used to attact business owners to Nevada:
- In Nevada, liability stops with the corporation. As an officer or director, you cannot be held responsible for lawsuits against your corporation except in the case of outright fraud. Directors, officers, employees & agents are indemnified from liability by statute
- Shareholders are not revealed to the state.
- It is very hard to pierce the veil of a Nevada corporation.
- Nevada also does not require corporations to file a list of assets. Therefore, the corporation's assets are not linked to you in any way.
In my opinion when it comes to your money decisions, think twice about doing business with a company that appears to place more importance on its own privacy and asset protection than transparency to you, the consumer. Your savings and investment is one thing you DON'T want to stay in Vegas.