If your business fails or is sued, how can you protect the valuable assets?
The goal of a business owners should be to title as few valuable assets
as possible to their operating company. Why needlessly lose valuable assets
if their business fails or is sued? It’s smarter to title these
more valuable assets to another entity to isolate them from the business’
creditors. These assets owned through another entity can then be leased
or licensed to the operating company.
Think about how this relates to what is going on today. Unfortunately,
many businesses are unable to operate and generate revenue. However, just
because some companies may go out of business, they shouldn’t necessarily
lose all of their valuable assets.
For example, we always title our clients’ real estate separately.
For instance, if your building is titled to your business’ corporation
or LLC, the business’ creditors can then claim the building as a
corporate asset. So why expose the real estate? It’s smarter to
title the real estate to a separate limited liability company. The real
estate then remains yours, no matter what happens to your business. Similarly,
you want to title equipment, furniture and fixtures, trademarks, trade
names, copyrights, patents, domain addresses and other proprietary rights
to separate entities and then lease or license these assets back to your
operating company. Your objective is to limit the business’ creditors
to the fewest and least valuable assets. You can then sell or use these
valuable and protected assets to start another business or for your personal
profit. In any instance, they won’t be lost to your business’
creditors. That’s smart planning. But it takes foresight and a defensive mindset.
Contact The Presser Law Firm, P.A. today for a complimentary consulation
to understand how you can best utilize these strategies.
The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(561) 953-1050 or e-mail Info@AssetProtectionAttorneys.com