Identity protection is the first and most important step to prevent business identity theft, a segment of identity theft that costs businesses $10,000 on average to fix-IF the business identity theft can be fixed.
Private registration of your business
Identity thieves are casing Secretary of State websites to find out who owns or manages a particular business. Once the identity of the management is discovered, this individual may become a business identity theft target.
In order to avoid business identity theft, register the company privately while using the private registration model as described in Privacy Crisis: Identity Theft Prevention Plan and Guide to Anonymous Living.
The model for private registration uses a Nevada Limited Liability Company as the entity holding the business. Companies may be registered in Nevada while being located in any part of the world.
Trust Manager Principle
Counsel advised that we utilize a front entity to manage the business that is managed by managers, not members. A Trust was chosen as the front entity and is used as the manager of record on Secretary of State registration records. A Trust has no registration requirements. The Trustee’s identity can be hidden through the use of an Administrative Trustee, a person assigned limited duties of signing on behalf of the Trustee.
Managers who use the Trust Management Principle and the Administrative Trustee Concept can effectively prevent business identity theft.
Personal identity theft prevention tactics should be employed by management as well as business identity theft prevention principles.
Identity protection for both management and business entities will prevent business identity theft.