A key reason for incorporating your business is the limited liability protection that a company provides you as a business owner. However, as your company becomes profitable, its assets (and the accumulated retained earnings) are at risk of being collected against by potential creditors.
So who are your potential creditors? They are your suppliers and lenders, but they can also be your employees, customers or any other individual who may have been injured or had property damaged due to your business activities. While commercial liability insurance is always a good idea as part of a liability protection plan, it may not always be sufficient.
Our goal in creating a comprehensive asset protection plan is to prevent or reduce your risk by insulating your business and personal assets from the claims of potential creditors. Unfortunately, most small-business owners are unaware of all the risks that could harm their business and the options that are available to protect themselves.
Our asset-protection plans include legal strategies that can deter a potential claimant or help prevent your assets from being seized after a judgment when put in place before a lawsuit or claim arises. Once a claim is made against your company, or an unpaid debt arises, then any attempts to start protecting the business assets will be useless. The courts will consider those late actions as fraudulent attempts to defeat known creditors.
The strategies we most often use in asset-protection planning are separate legal structures such as holding corporations and sister corporations. Determining which structures that will work best for your business depends largely on the type of assets your business holds, the level of risk your business activities are exposed to, and the types of creditors that are most likely to pursue claims against you.
If you haven't already put your asset-protection plan in place, don't wait. The longer your plan exists, the stronger it will be.
Please email us at: firstname.lastname@example.org to schedule a time to discuss how we can help you protect your business assets.