Protect My Assets
One of the things that most people worry about when they decide to start their own business has always been "how do I protect my assets?" Most people who start a small business on their own are under the impression that if it fails their personal assets can be seized by the courts to settle any debts including liens, judgments and outstanding loans or credit cards. Thanks to recent changes in the law this may no longer be an issue as long as you set up your new company the right way. "I understand that there are different ways to form a corporation, but will this really protect my assets?' This is an excellent question and one that is asked quite frequently. If you decide you want to keep your business listed as a sole proprietorship, you will find that under federal law your personal assets will become part of your business assets and as such can be used to settle any and all debts. It might sound good to be the sole owner of a business, but from a financial point of view it can be disastrous.
"So what type of corporation will protect my assets?" In recent years there have been many changes made in the corporate structures that are available to business owners. Incorporating your business will protect your assets as well as anyone else that may be a part of your business including family members, business partners or your stockholders. If you are not incorporated and a product you make injures someone or makes them sick, the courts can use the personal assets of you and anyone else who has ownership in the company to pay for the claim after they have already used up the company's assets. "Which type of corporation will best protect my assets should something go wrong?" Today the most commonly formed corporation is the Limited Liability Corporation or LLC. Under the rules governing an LLC the owners of the company are listed members, which offers them a much higher level of protection than any other type of corporation.
With so many companies being sued for the smallest problem, the liabilities can be horrendous as people tend to sue at the drop of a hat. "So if I form an LLC my assets are protected by law even if I go into bankruptcy?" Your personal assets are protected by law from being used to settle any type of business debt once your LLC is properly registered. According to the law it does not matter how the debts were accrued, the only assets the courts can attach are those that belong to the business, your personal assets and those of anyone else listed as the owners are safe from being attached. If you have questions about corporate laws and want more answer to the question "How do I protect my assets?" you need to see what the experts at Corporate Nevada have to offer. Whether you are starting a small business or a major corporation you will find information here that can help you ensure your personal assets will be protected no matter what may happen in the future.
Entrepreneur's Creed
I do not choose to be a common person.
It is my right to be uncommon.
I seek opportunity -- not security.
I do not wish to be a kept citizen, humbled and dulled by having the state look after me.
I want to take the calculated risk, to dream and to build, to fail and to succeed.
I refuse to barter incentive for a dole;
I prefer the challenges of life to the guaranteed existence: the thrill of fulfillment to the stale calm of Utopia.
I will not trade my freedom for beneficence nor my dignity for a handout.
I will never cower before any earthly master nor bend to any threat.
It is my heritage to stand erect, proud and unafraid: to think and act for myself,
to enjoy the benefit of my creations and to face the world boldly and say:
This I have done. For I am an entrepreneur.
Author unknown
Are You A Commingler?
If you are…there’s only one cure, separation! Always separate your safe assets like cash, intellectual property and stock portfolios, from dangerous assets like autos, heavy equipment, rental real estate, etc. For example, it is better to place expensive equipment critical to operations in an LLC and lease it back to the operating company. If the operating company is sued, the income producing equipment is not at risk of being seized in a judgment. Isolating dangerous assets, such as rental property, from one another is also a wise strategy.
