Business owners will often reflect on Asset Protection as something they ‘should have done’ which can be painfully costly.
Asset protection is a necessity. It allows individuals to make a legal distinction between their personal and business assets. Courts don’t often respond well to assets being sold off after the initiation of a lawsuit, therefore this should be a proactively implemented strategy rather than a reactive one. If a strategy is not put into place, then this can lead to loss of whichever assets are available during a lawsuit; such as homes, cars, boats, etc.
Having strategies in place can prevent seizure of your assets, but can also act as a deterrent against potential claims. There are different types of asset protection plans. Consulting an advisor on which strategy is suitable for your business and industry will enable you to make a more informed decision as this can be a complicated process.
Speak with your LT accountant to discover more about protecting your assets.