Here are 10 of the best asset protection guidelines for small business owners:
- It’s too late to put together an asset protection plan after you are sued; The best time to create an asset protection plan is prior to having a claim made against your business.
- Trying to put asset protection in place after a claim is made can make things worse for you, not better.
- Insurance is not a substitute for asset protection planning; Asset protection planning should not be confused with insurance.
- You should create a trust to protect your personal assets; Putting your assets into the business is not the way to protect them.
- Your assets are not protected if you still have major control over them; The purpose of effective asset protection is to strike a good balance of control.
- Asset protection planning should not be confused with estate planning; the goals of each may differ.
- Bankruptcy is an option for some, but it does not solve all problems.
- Placing all your assets into an offshore account is not always the best plan.
- Assume that creditors will discover your asset protection plan and develop your plan accordingly.
- Asset protection planning should be kept as simple as possible.
If you’re a small or mid-size business owner, call us today to schedule your comprehensive LIFT (legal, insurance, financial and tax) Foundation Audit. Normally, this session is $1,250, but if you mention this article and we still have room on our calendar this month, we will waive that fee.
