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Asset Protection for Small Business Owners

Asset Protection for Small Business Owners

by | Jun 13, 2019

For many business owners, their company is their baby. It is an important part of their history and life and measures their success. A lot of business owners do whatever is necessary to ensure their business is protected and well taken care of, even if it means not sleeping or eating for a day or two!

When it comes to protecting your business, sometimes insurance is simply not enough. If you want to ensure that your business is fully protected against any potential problems, asset protection may be the next step to take in protecting your business.

What is it?

In more words or less, asset protection is simply protecting your personal and business’ assets against any civil money judgments. Asset protection planning will allow you to protect yourself from any future issues, and help keep your business afloat so that you may one day retire and live comfortably.

Asset protection has many benefits, including making your business appear less attractive for future lawsuits and putting your assets out of reach from creditors.

Read More: How to Protect Business Assets When Essential Employees Leave

Where Do You Start?

If you haven’t already looked into asset protection planning, you should. Many business owners often decide when it is too late, to find a way to protect their assets.

When you look into the future of your business, if are concerned about dealing with claims against you or against your personal assets, you should immediately begin speaking with an employment lawyer about asset protection. This will prevent any issues from going further than they should and will also protect you in the case that someone does file a claim against you or your business.

Read Also: Why Your Business Needs a Handbook for Employees

Protecting Business Assets

In the state of Florida, an individual’s assets are protected in many situations, such as their primary residence and salary. Unfortunately, this is not the same for your business assets.

If a creditor makes a claim against your business and follows through, you can lose income associated with the business and all bank accounts. If a creditor obtains a judgment against your business, they can also gain access to the business and shut down cash flow coming into the business.

When you’re planning for your business, asset protection planning should be implemented into the plan sooner rather than later. Although it may be expensive and have tax effects, it will protect your business’ valuable assets.

The Benefits

If you have established an asset protection plan before any issues occur, you will be protected in several ways.

Because your business’ worth or your wealth can be hidden in asset protection planning, your business can appear to be a poor lawsuit target and you could possibly avoid going to court altogether.

If you do end up in court, another benefit is that your assets may be protected in the fact that only you can access them, and the court cannot, thus making them ‘not readily available‘. This will allow the ball to be in your court when it comes to negotiating an agreement.

Campbell Law Group Protect You

Small business owners can sometimes feel like the worm against the big bird, but it is possible to succeed in the corporate world with a little help. At Campbell Law Group, we want to ensure that your business is protected against any possible problems and that you can succeed in pursuing your dreams. Contact us today at 305-460-0145 to find out how we can help your business.

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