You work hard for your money. Consider saving your backside by putting together a comprehensive asset protection plan.
Running your own business is a risky venture, and even riskier if you don’t have an asset protection plan in place. A comprehensive asset protection plan can safeguard your investment of time, labor, and money and can protect you from losing your ability to operate or start over should a serious financial threat arise.
Assess your liability. Consider your potential liabilities. Government taxes can whittle away your assets. Contract and health issues can take a toll on your earnings. Debts such as unpaid taxes, child support and alimony, business and personal loans, and medical bills are liabilities. Auto accidents, professional malpractice, homeowner and office accidents, rental property accidents can also endanger your earnings. Other liabilities come from labor law and criminal violations. Remember, you can also be held responsible for the actions of your partners, employees, and family members.
There are many ways you can safeguard your assets. Speak with a qualified financial planner or an attorney with estate planning expertise. Each usiness owner’s situation is different, and they have the expertise to guide you to the solutions that are right for you. Traditional estate planning forms can be used as asset protection techniques. Retirement and pension plans have a measure of protection under government law. Certain provisions in life insurance contracts and certain types of trusts can prevent creditor attack. You may benefit from incorporating your business or forming a imited Liability Company (LLC), Family Limited Partnership (FLP), or limited partnership.
Place your business and personal finances under a protective umbrella. It is possible to protect most or all of your personal and business assets legally, even in the worst circumstances. You owe it to yourself, your family, and your employees to do so. Ask about a Personal Liability Umbrella insurance policy to extend coverage from your other policies. If you give advice as part of your business, you also should consider “E&O” (Errors and Omissions) insurance.
Trying to protect your assets after a challenge arises is skirting a fraud charge. Isn’t it time you think about legally protecting your assets—before a problem arises?
