Legally Mine’s Advice on How to Protect Assets

You may not realize, but the way your business is structured could be putting your assets at risk. Each type of business entity offers different asset protection. Do you have the right one for your needs?

Here is a quick rundown:

• Corporation: While corporate principals have no personal liability for corporate debts, claims, or lawsuits, there is an important exemption. If you perform a service on behalf of a doctor, attorney, accountant, or financial professional, you may be held liable for damages.  

• General Partnership: If you are a co-partner, you are responsible for all partnership acts and debts. This greatly exposes your own assets to the risk of a claim.

• Limited Partnership (LP): If you are a limited partner, you are not personally liable for the partnership’s obligations and debts beyond what you contribute to the partnership. However, this means you can not assume an active role in management or you lose your protection. 

• Limited Liability Company (LLC): Generally, state law essentially separates the liability of the owners of an LLC from their personal assets. While an LLC won’t protect you personally from liability should a malpractice lawsuit be filed, it will shelter you from the financial obligations of your company. 

The bottom line is that you should consult with an asset protection expert to determine which business entity is right for you and which other measures you should take for complete asset protection.  

What You Can Protect Under a Business Entity

Now the question is, what types of asset protection are allowed under a proper business entity? 

Before we answer that question, you must first remember to always separate your business assets from your personal ones. If you don’t, your personal assets become vulnerable for the taking.

However, if done legally and correctly, your asset protection can extend to the following items:

• Real estate
• Property titles
• Tangible goods
• Trust payments
• Stocks and bonds (and dividends)
• Deposit accounts and future income
• Retirement accounts

How Can Advice from Legally Mine Protect Assets?

Here are a few other pieces of advice to protect assets:

• Own each piece of valuable business equipment in a separate title holding trust. This allows you privacy of ownership and keeps the public from seeing your business assets. 

• Record a lien against each piece of valuable business equipment or real estate. This strips the equity out of it.

• Perhaps most importantly, complete your asset protection plan well before any threat of claim or lawsuit arises. Otherwise, it may be invalid or even judged as illegal.  

Legally Mine protects assets by helping you structure your business and your wealth in a way that legally keeps it out of the hands of those looking to take it. By following Legally Mine’s advice, you’ll gain maximum protection and be able to pass your assets down for generations to come.

Contact Legally Mine today!