Asset Protection Planning for Small BusinessBy James Blake on
Asset protection involves business law strategies for limited liability, creditor protection, limiting business tax and estate taxes, and protecting a small business from other contingencies. Every small business has different assets and risks, requiring a customized business law strategy for asset protection. However, the fundamentals of asset protection can be grouped into three general categories – asset protection structures, asset protection processes, and business contingency planning.
Asset Protection Structures for Small Business
Successful asset protection strategy begins when you are starting a business, organizing business entities, and developing business relationships. To build solid asset protection structures for your small business, consult a business lawyer to help you with:
• Choosing the right business entity for limited liability
• Creating multiple business entities to segregate risks from assets
• Drafting secure business contract agreements
Small Business Asset Protection Processes
After structuring your small business for asset protection, you can’t just wash your hands and be done — asset protection requires maintenance. If your small business doesn’t follow the correct procedures, your limited liability can be destroyed along with your asset protection planning. To keep your limited liability, be sure to:
• Follow proper “Corporate Formalities”
• Avoid commingling assets
• Do all business at fair market value – avoid “sweetheart deals”
Business Contingency Planning for Asset Protection
What might happen to your small business if you or a partner dies, becomes disabled, or simply wishes to leave the company? How will your small business be affected by estate taxes and probate? Some important asset protection tools for small business contingency planning include:
• Buy-Sell Agreements
• Key man insurance
• Business succession planning
• Estate planning
Building a successful small business is more than just creating revenue today – it also requires proper asset protection planning to create secure, long-term value. Our Austin business law firm regularly advises clients in asset protection planning. Contact us today to get build secure asset protection systems for your small business.
Call an Asset Protection Lawyer in Austin, Free Consultation!