How Can a Business Owner Protect Assets?

If you are a business owner, you may wonder how you can protect assets that you have earned from litigious types. There are a couple of different ways that you can protect assets if you own a business, and one of them would be through the creation of a limited liability company. With a limited liability company, the actions of the company would not be connected to your personal property. Property that is in your personal possession could not be attached if there was a legal judgment against the company. In addition to the above, you also enjoy something called flow-through taxation. Though you enjoy the asset protection benefits of a company, when it comes to taxes, you can continue to claim your profits or losses on your individual tax return when you have a limited liability company. You have to avoid fraudulent conveyances. If you create a limited liability company after you find out that you are the target of a lawsuit in an effort to protect assets, this could be construed as an
http://www.norcalplanners.com/blog/asset-protection-planning/business-owner-protect-assets/

Advertisements
Standard

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s