Why I Don't Like XRP Held in an S-Corp or a C-Corp. Jake Claver on charging order and creditor protection.
Looking for the full answer to “LLC vs S corp for holding crypto”? It is written up here: S-Corp vs LLC – Which One Is Best for You?.
What this recording covers
Claver explains why holding a corporate digital asset treasury reserve directly inside an operating S-corporation or C-corporation creates severe legal vulnerabilities. In operational industries such as construction, business liabilities and lawsuits expose corporate assets to direct legal claims. If a judgment creditor seizes corporate shares, the creditor can assume control of the corporation and liquidate corporate treasury holdings to satisfy claims. Instead, Claver recommends segregating operational activities from asset ownership by using an asset holding company that leases equipment to the operating entity. Furthermore, Claver notes that S-corporations face strict ownership limitations that restrict trust ownership, whereas limited liability companies organized in states like Wyoming provide robust charging order protection. Claver explains that business owners can maintain pass-through tax status through an entity tax election while isolating operational liabilities from accumulated digital treasury reserves.
Where this fits
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