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