Asset Protection for Business Owners
Business owners spend a lifetime building a successful enterprise. If things go wrong, however, you could be putting your entire livelihood at risk. Without proper asset protection planning, your personal assets could be exposed to claims from creditors and other parties. Unfortunately, this is something that many business owners put off until it is too late, or they neglect to periodically review and update their asset protection plan. If you own a business, a Boca Raton asset protection attorney can help make sure your personal assets are insulated from your potential business liabilities.
What Assets and Liabilities Does Your Business Have?
The first step in asset protection planning is to review all of your potential business assets:
- Real estate and facilities
- Tools and equipment
- Stocks, bonds, and other financial assets
Then, you need to consider the potential liabilities associated with each of these assets. For example, someone could fall and be injured on the property that you own. Alternatively, a shipping company may face significant liability associated with the fleet of vehicles it owns and operates.
You should also consider the business that you are in – some businesses carry far more inherent risk than others. For example, a construction company may face greater liability than a firm that provides professional services. Making a thorough assessment of your assets and liabilities can help you formulate a sound asset protection plan.
The corporate structure of your business is vital when it comes to insulating your personal assets from liabilities related to your business. Many businesses start as sole proprietorships or partnerships not realizing the potential exposure they face – while these structures often help owners get a business off the ground quickly, they offer very little protection from potential liabilities. In short, creditors and other claimants could attach your personal assets such as your bank accounts, your cars, and even your home.
A Boca Raton asset protection attorney can help you find the right corporate structure for your business to ensure that your personal assets are protected. These structures can include the following:
- Limited Liability Companies (LLC)
- S-Corporations (a privately held corporation where the profits and losses are passed through to the owners)
- C-Corporations (a privately held corporation that is taxed as an entirely separate entity)
Each of these structures provides unique asset protection features for business owners, but can also provide important tax benefits. Even if you are already operating as a sole proprietorship or partnership, reforming your business as one of these entities is advisable.
Consider Multiple Entities
Even if you are operating as an LLC or corporation, a single claim could threaten to wipe out your business and destroy your livelihood. To guard against this, you may want to consider forming multiple entities in order to better manage your potential risk. For example, if your business owns a building, consider forming an LLC for the sole purpose of owning the building. As a result, any claims related to the building are brought against that entity rather than your core business.
Contact a Boca Raton Asset Protection Attorney at Ellis Law Group
Don’t risk your personal life by failing to manage your business risk. Invest in your security by speaking with a Boca Raton asset protection attorney at Ellis Law Group. Our people have decades of experience in helping our clients protect what is most important to them. Call us at 561-910-7500 or contact us online to schedule a consultation to discuss your needs today.