In today's litigious society it is important to understand the personal risks you face conducting the day to day operations of your business. Regardless of what type of business you own, you can lose your hard-earned money from one lawsuit.
Statistically speaking, one in four businesses will be sued over the next year. Unfortunately, this means that receiving a lawsuit in your mailbox is not a matter of “if’” but rather a matter of “when”. By preparing for this inevitable reality before it happens you can prevent major losses to your net worth and sleep soundly knowing that your key assets are protected.
At the Presser Law Firm, we have a saying, “For every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it”. You may find yourself with extra time on your hands now, so take the time to think about how to protect yourself.
Here are three strategies we recommend to our clients to protect their most meaningful assets:
1. Form a Protective Entity
There are dozens of protective entities, such as Limited Liability Companies, Limited Partnerships, Corporations, certain Trusts, etc. By moving your assets into protective entities, you still main control over your assets while also protecting the assets from loss to a creditor.
2. Take out liens on key assets
By putting encumbrances on assets, you make those assets less attractive to potential creditors. Creditors do not want to spend time and money going after assets that have very little equity. You do not want to be the low hanging fruit.
3. Communication Between your Financial Team
By encouraging communication between your financial team, you can implement a comprehensive plan that not only protects your assets, but also incorporates Financial Planning, Tax Planning, Estate Planning, and Business Succession Planning.
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