Brent Carlson discusses the importance of choosing the right business structure to protect personal and corporate assets, especially in a litigious environment like the United States, where lawsuits are filed every 30 seconds. He stresses that forming an LLC or corporation isn’t just about compliance—it’s about building a “brick wall” between personal and business liabilities. Brent shares how his building is held in a separate LLC to isolate liability from Corporate Capital’s operations.

He highlights the advantages of incorporating in states like Nevada, Wyoming, or Delaware, which provide strong asset protection laws and prohibit piercing the corporate veil except in cases of fraud. Wyoming is particularly appealing due to its privacy protections, where owners’ names don’t appear on public records, making it a popular choice for new LLCs and holding companies.

For California business owners, Brent suggests adding a holding company in a more favorable state like Wyoming to protect assets, though California taxes still apply. He underscores the flexibility of LLCs, which can be taxed as sole proprietorships, partnerships, or corporations depending on business needs. Unlike corporations, LLCs have fewer compliance requirements, making them a simpler and more efficient choice for many entrepreneurs.