Asset protection protects you from sudden catastrophes in businesses. It
is perceived that large corporations have the finances to afford asset
protection. Small businesses need asset protection too. They are more
likely to suffer setbacks because they are either startups or businesses
barely making payroll. They also have loans and other financial resources
to pay back.
Asset protection eases the blow of lawsuits,
determined creditors, risk and more. Before you choose an asset protection provider, consider
Small businesses need to count inventory. It should be a complete and thorough
list of debts and assets. It should be updated every six months. Go beyond
the company and look at personal debt and assets. Stock in other companies,
retirement accounts and company/personal cars have value. It shouldn't
mix with professional assets and debt, but you should be aware of them.
Add anything else that's valuable and is up for grabs in a lawsuit.
Exemptions and protective entities must be thoroughly researched. Personal
residence, pension, retirement fund, and life insurance have the possibility
to be exempt due to federal or state law. Exemptions protect assets in
your name from being at risk in court or through creditors. The remaining
assets need protective entities. Protective entities have many layers;
this makes it hard for creditors or courts to take it from the business.
You can also equity-strip the asset, but you will need to
contact us for more information about that.
Personal guarantees are a pledge to be responsible for debt. The downside
is losing company protection. A personal guarantee doesn't work with
asset protection. Banks and lenders will try to get it, but turn the tables.
Place a time limit on personal guarantees or choose one asset as collateral.
That way your company will follow the rules while salvaging your assets
using asset protection (via
estate planning). If banks and lenders remain persistent, don't take the bait. Find
Never sign a contract without a lawyer present or without review by a lawyer.
Contracts are tricky, and banks/lenders will make sure the contract tips
in their favor. Tip it back in yours by adding liability protection in
the contract. Add a limit on damages and the damages you refuse to be
responsible for in the contract. If a company doesn't agree don't
settle for their demands. Sign contracts on behalf of the company, not
on your behalf. There's a high chance that if the contract sours it
will become a personal liability not professional liability.
Asset protection isn't enough for some creditors. They will take the
risk despite the protection. Add another layer of protection by purchasing
liability insurance and property insurance. Liability insurance will cover
personal damage and damage to property. Property insurance is another
layer to project company assets.
"The Five Things You Should Know About Asset Protection Trusts"
must be reviewed carefully. A qualified estate planning attorney is highly
recommended for asset protection assistance. They can assist with legal
terms and conditions and answer any questions you have prior to purchasing
this investment. Small businesses should buy this as soon as possible.