Jason Whong Quoted in California Executive

"Do Your Homework Before Incorporating in Nevada," an article posted in September in the netletter California Executive, notes "A considerable number of California businesses are incorporated out of state, mainly in Nevada, and operate as so-called foreign corporations.  Some business owners seek out incorporation in the Silver State after enduring a pummeling at the hands of the California court system.  They make a run for the border to protect their personal assets in the event of a lawsuit and as a result they have a sense of security.   But many California business attorneys remain lukewarm to the idea.  . . . Attorneys who advise against out-of-state incorporations still mostly agree that personal asset protection may be stronger in jurisdictions other than the golden State.  For instance, an asset protection trust with liquid assets formed in Alaska, Delaware or an offshore location may make the task of suing business owners personally more difficult for creditors, says corporate attorney Jason Whong, a partner in the San Francisco office of law firm Seyfarth Shaw LLP.  Whong says the argument in favor of incorporating in Nevada for liability insulation purposes has been overstated by promoters.  'If the company you're running is legitimate and you have insurance, then the corporate veil should not be pierced whether formed in California or Nevada,' says Whong."