Millions of people dream of owning their own business, and many make it a reality. Sometimes this dream can turn into a nightmare when you find yourself at risk of losing your hard work — your business assets. Business owners are often held liable in lawsuits and accidents. What would you do if this happened to you?
The good news is there are legal strategies to help protect your professional and personal assets from potential risks. These strategies are not to be used as a last resort when something has already happened, but rather they are to be put in place long before a risk materializes. Call and speak with our experts today about how we can assist you in protecting your business assets.
There are many risks associated with owning a business, just as there are many rewards. Some risks can turn into problems that can financially impact your business. Past creditors can sue or be granted judgments against your company. Employees can become injured on the job, or consumers can have an accident while at your business. In both instances, the injured party may demand payment for their medical bills and, potentially, personal compensation. Your business could also be held liable if an employee injures other people while working for you, like if an employee causes an accident while driving a company vehicle. In this instance, your business would be held liable for the individuals who were hurt by your employee. If you’re dealing with any of these situations, call us right away to see how we can help.
Most assets are categorized into two asset types: dangerous and safe assets. Dangerous assets are assets that are easy to liquidate, and they are the assets most at risk during a lawsuit or judgement. Dangerous assets include rental and commercial real estate, business equipment, and company vehicles.
Safe assets are assets that do not have a high amount of liability. Stocks, bonds, and personal bank accounts are examples of safe assets.
One way to protect your business assets is to have the correct business structure. Many small businesses begin as a sole proprietorship, but this leaves your personal assets vulnerable. It could be a very costly choice if you were to be sued. Incorporating your business is a simple action you can take to insulate you and your business from certain risks. There are several ways to accomplish this.
A limited liability corporation, or LLC, is considered a pass-through entity by the IRS. This means the business profits are reflected in the owner’s tax returns. An LLC makes the business a separate legal entity, and it can protect you from personal financial issues if someone files a lawsuit against your business.
Another option to protect your business is by making it a C corporation. Much like an LLC, it separates your personal finances from business finances. A C corporation usually involves shareholders and a board of directors, and it can have more tax benefits than an LLC. However, profits are sometimes taxed at a higher rate.
A S corporation is similar to a C corporate. However, profits are only taxes once as it passes through to the owner and shareholders.
Contact us today if you’re ready to get help with incorporating your assets into a business structure.
Even if you are not ready to incorporate your business, it is essential to separate your personal and professional finances. Doing so can minimize your risk and make it easier to manage your business. Our experts can help set up an optimized financial management and asset protection plan so that you can rest easy knowing your assets are in good hands.
You expect to pay an insurance premium for a car or house, but did you know a business can benefit from an insurance policy? Our experts can help you protect your business by guiding you through the business insurance process.
Are you ready to take control, and really protect your business assets, and in turn, your future? Contact us today, and we will help you get started!