As an Idaho entrepreneur, your business is your lifeline.
If you lose your business’s assets, you lose your income. You cannot afford to let that happen, especially after how hard you’ve worked to build your business.
Luckily, our team of business lawyers at the Generations Law Group is here to help you. Read on to take a closer look at the measures you can take to protect your assets as an entrepreneur.
How To Protect Your Assets
Once you’ve established a successful business, the most vital step is protecting your assets to ensure a secure financial future for yourself and your successors.
When you follow these five steps, you can make significant strides in securing your business’ future.
These steps may seem complex and paperwork-heavy, but you don’t need to stress – that’s where our team comes in. At Generations Law Group, we are ready to help you secure your assets!
1. Establish A Limited Liability Company To Divide Your Personal Assets From Your Business Assets
One of the most vital actions you can take in the realm of asset protection for entrepreneurs is forming a limited liability business entity, commonly known as an LLC.
By forming an LLC, you ensure that you are not personally liable for any debts or legal matters against your business and vice versa.
When you form an LLC, you separate your business assets from your personal ones – and in the process, you protect both.
2. Distinguish Your Business Ventures From Each Other
Some entrepreneurs seem like they never run out of charge – they always want to start some new business venture. If that entrepreneur sounds like you, this step may be important for you.
As an entrepreneur, forming a limited liability company is not the only thing you must do. If you have multiple business ventures, you must ensure that they are legally distinct from each other.
Consider registering your businesses as individual LLCs to minimize the effect that debts and liabilities on one will have on the others.
3. Consider Setting Up A Trust
For many people, setting up a trust may seem macabre. However, parts of an estate such as a trust are not just for after you pass.
For business owners, elements such as a legal trust can be a very handy legal tool.
Many entrepreneurs prefer to place their businesses in an irrevocable trust, where a third party takes control of a business, and the entrepreneur relinquishes liability.
4. Make No Personal Guarantees
Running a business can be difficult, especially when dealing with customers and other companies.
In the business world, everybody is out for the same goal as you are: making the maximum profit with minimal investment.
For this reason, you must avoid personal guarantees where possible. These guarantees where a deal or an agreement holds you personally responsible if anything goes wrong with your business are dangerous for your financial future.
5. Obtain The Necessary Insurance Policies
Nobody likes dealing with insurance, but everybody agrees that it’s necessary. This handiness carries over to your business, as well.
By obtaining the necessary insurance policies for yourself and your business, you can minimize damages incurred against either entity and therefore minimize debt and liability to protect your assets.
Contact Generations Law Group To Help Protect Your Assets
Nobody likes dealing with insurance, but everybody agrees that it’s necessary. This handiness carries over to your business, as well.
By obtaining the necessary insurance policies for yourself and your business, you can minimize damages incurred against either entity and therefore minimize debt and liability to protect your assets.
