I recently went on a trip to Asia and I wanted to share with you my experience. After a 16 hour flight direct from Newark, NJ I arrived in the heart of Asia “Hong Kong”. I had the wonderful opportunity to stay with a family who has lived in Hong Kong for almost 55 years. Being this was my first time to Asia I was not sure what to expect, but I knew going into this trip that I was going to be open to everything.

Hong Kong means Fragrant Harbor and was formerly a British Colony and was handed over to the People’s Republic of China in 1997. Even though they are now part of China they have their own currency (Hong Kong Dollar) and the Hong Kong Government is financially independent from the Government of The People’s Republic of China. The city of Hong Kong is very industrialized and is growing by the second. As of today there are currently 7 million people living in Hong Kong, everyone speaks both English and Cantonese and it is known as the safest city in Asia.

One of the things I enjoyed most about Hong Kong was how genuine the people are there. They make you feel right at home and welcome you with open arms.  During my 10 days there I saw a great deal of the city. Hong Kong has it all from great restaurants, to great markets, to magnificent views. Even for me a person whose biggest pet peeve is to shop I enjoyed it, because the best part was I could bargain the price and walk away feeling good about what I paid for it.

I found Hong Kong to be one of most fascinating cities I have ever been to and one of the main reasons I went there was to educate myself on the potential business opportunities Asia has to offer. On my plane ride over I read a really interesting article from USA TODAY. The article was called “Asia Holds Growth Potential”. The article talks about how the recent recession has whet US companies appetite for growth in Asia. In 2008, nearly half of the US companies surveyed saw their China-based businesses perform better than the overall company, the US-China Business Council found in a poll of its members. The percentage of US companies whose China operations are profitable is 84% to 16% not profitable. The results show that the once-prevalent notion that US companies “cannot be profitable in China is a myth,” says John Frisbie, the council’s president.  American companies that are able to break into the Asian market will have the potential to leverage the consumer base of some of the fastest growing economies in the world. Some of the American industries that are betting on Asia: Pharmaceuticals, Autos, Casinos and Consumer Products.

I would highly recommend all entrepreneurs to visit Asia, but especially Hong Kong as it is a one-of-kind city and is full of opportunity for the global enterprise.

In a recent article Safe Boating: The Delaware LLC Way we discussed the benefits of placing your boat in a Delaware LLC and registering it here in Delaware. In this article we will go deeper into the registration myth.

I recently read a very interesting article from BoatU.S. Magazine called “The Boating Myth That Won’t Die”.  With the economy still stagnating every state is revenue hungry and looking for uncollected taxes. Cruising boaters crossing state borders may find themselves in troubled waters if they linger too long in one area. The article was about a family who sailed their vessel on the eastern seaboard from Florida to Maryland. Along the way making stops in a few counties in North Carolina, when they arrived at their new home in Maryland they found mail from the state of North Carolina concluding they had personal property in North Carolina and therefore were subject to taxes in North Carolina.

I found the information below to be interesting in that typically clients will register their boat here in Delaware and cruise around the world docking in numerous parts of the world. Below is an excerpt:

A common misconception in recreational boating circles is that federal documentation of a privately owned boat by the USCG exempts the vessel from state registration, and thus taxation. This is NOT the case. In fact, most states require vessels kept in their waters for prescribed length of time, most commonly 60 to 90 days, to register and obtain a state sticker to indicate that the owner has paid the required taxes.” 

So the message to take from all this is make sure that if you’re cruising your vessel from place to place and are registered in another state beware of the length of time that you are stationed in each location as you could be subject to taxes.

Every day thousands of people travel by airplane, but only a few of them own their own plane. Question, “How many airplanes does U.S. Airways own? Or Delta, or Continental, or American Airlines? The answer is ZERO. No airline owns its own planes. Airlines are structured as multiple entity operations with a central operating company which leases each airplane from its own separate entity.

Why? Although the airplane is one of the safest ways to travel, accidents do happen. If you own an airplane you should consider using this same technique to maximize your liability protection. By owning the airplane in a Delaware LLC you shield your personal assets from creditors in case of an accident and/or lawsuit. For the best protection, let’s take a look at how Harvard Business Services, Inc. can help.

Bill, the owner of an airplane calls up HBS and asks “I own my own plane and I want to protect my other assets from liability arising from the plane? They tell me a Delaware LLC is one of the best asset protection entities, is that true?”

Yes it is, Bill, and here’s how we can help:

• We can form a Delaware LLC for you which will own the plane and provide you with asset protection and anonymity of ownership.

• We can form separate LLCs for your other major assets, to keep them out of your name alone.

• If you are sued for an accident, we can supply you with Certificates of Good Standing proving the validity of your multi-entity structure. With the strongest asset protection by law, a Delaware LLC will help provide another layer of protection that will make lawyers reconsider suing you personally.

• If you own a home, having a Delaware LLC could help provide protection from someone coming after your home and causing you to loose it. Also, be sure to check your State’s “Homestead Laws” as these laws vary from state to state.

• If you own any other real estate such as a farm, beach house, etc. be sure to put these in separate Delaware LLCs. This will place a big brick wall up helping you to protect each individual asset you own, and it will help you with your estate planning, as well.

• There may also be tax advantages to using multiple entities depending on your individual tax bracket and situation. For tax information you should consult with your accountant or tax professional.

Many of the major airline companies worldwide are incorporated here in Delaware to protect their assets. Why Delaware? Because Delaware’s legal infrastructure will stand behind you if you’re sued.

For detailed information on how HBS can help protect you as an aircraft owner click HERE.

We also understand the special needs of an aircraft owner as HBS offers a unique FAA Mail Forwarding Service, for detailed information click HERE.

To start protecting your assets, call Harvard Business Services, Inc. to get your aircraft and other major assets into separate Delaware LLCs today. 1-302-645-7400