Here are 10 of the best asset protection guidelines for small business owners:

  1. 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.
  2. Trying to put asset protection in place after a claim is made can make things worse for you, not better.
  3. Insurance is not a substitute for asset protection planning; Asset protection planning should not be confused with insurance.
  4. You should create a trust to protect your personal assets; Putting your assets into the business is not the way to protect them.
  5. 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.
  6. Asset protection planning should not be confused with estate planning; the goals of each may differ.
  7. Bankruptcy is an option for some, but it does not solve all problems.
  8. Placing all your assets into an offshore account is not always the best plan.
  9. Assume that creditors will discover your asset protection plan and develop your plan accordingly.
  10. 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.