Asset protection can be a concern if you are the owner of a business or a professional practice. There are always litigious types out there who look for successful people to target so you have to be vigilant and take the right steps to protect what you have earned.
Many different types of business owners could be targeted by litigants, but people who are in certain lines of work are more vulnerable than others. If you are in one of these high-risk professions (think medical, pharmaceutical, real estate, and construction), asset protection is very important.
There are different ways that you can separate your personal assets from the actions of your business entity. One possibility is to create a limited liability company.
When your business is operating as a limited liability company, your personal assets are protected from the actions of the business. However, you can continue to enjoy flow-through taxation. It is possible to claim profits and losses from your business on your personal income tax return. Be aware, though, that an LLC will not protect you from injuries you personally cause someone else (you own malpractice, for instance), only from other actions of the business.
To appropriately protect your personal assets, you want to create a limited liability company before you have any idea that you are going to be the target of a legal action. Any time you convey assets into a legal structure as a reaction to pending litigation, the act could be construed as a fraudulent transfer or fraudulent conveyance — that’s bad and it won’t work.
We have prepared an in-depth special report that will provide you with a lot more useful information if you are interested in establishing a limited liability company. The report is being offered free of charge at the present time, and you can obtain access to your copy through this website.
To get your copy of the report, click this link and follow the simple instructions: Free Report on Limited Liability Companies.
Learn More About Asset Protection Strategies
A limited liability company may be a good choice for you, but other options exist. We have another free report that looks at asset protection planning from an overview.
If you would like to digest this information, you can get your copy here: Asset Protection Report.
Schedule a Free Consultation
Small business owners have a unique set of concerns when it comes to financial planning. Asset protection is certainly part of the equation, but there are other issues to address, including business succession strategies.
We would be glad to assist you if you are a small business owner. Our firm offers free consultations, and we can answer your questions, become apprised of your objectives, and advise you appropriately.
To set up an appointment, send us a brief message through our contact page: Charlotte NC Financial Planning Attorneys.
John’s practice focuses on the use of Wills and Living Trusts in Estate Planning to help individuals protect their families and preserve their legacies after their deaths, but his practice also focuses on the critical issues of protecting individuals with dementia or other diminished capacity, assisting individuals in qualifying for Medicaid and other government benefits to offset the costs of long-term care, and providing special needs planning.
John is admitted to practice law in North Carolina, South Carolina, Kentucky, and Ohio, and he is accredited by the Department of Veterans Affairs.
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