Whether a Long Standing or Start-up Business, Asset Protection Is Needed in a Sue-Happy America

If you do business in the United States, then the threat of a lawsuit constantly hangs over your head. You might be looking at a lawsuit if a customer feels that a product that they purchased from you harmed them in some way. If you are not protected, then you could lose all of your assets in a sue-happy America.

An Overview of Assets

Your personal assets are anything with monetary value, such as your business residence, machinery, financial accounts, stocks and investments, and even your family home. Your business assets include any equipment your company owns, inventory, and any trademarks that you hold for your business brand. The more successful that your company becomes, the more of a target you might be for opportunistic attorneys looking for a big payday. Investment in asset protection helps protect you in case of a lawsuit.

Personal and Professional Assets

Your personal assets are exposed if you do not have the proper tax structuring. For example, if a doctor is sued and does not have enough malpractice insurance to cover the judgement, then that doctor might lose their house and other property in order to pay financial debts. This can happen to any small business owner without the proper coverage. In the blink of an eye, everything you worked for could be gone.

A Guide to Asset Protection

Whether you are a sole proprietor or a partnership, the first step to protecting your personal assets is to make your company its own legal entity. By forming an LLC or a corporation, you are creating your company as a separate entity that can be sued by clients and their attorneys. When your company is sued as a legal entity, your personal assets are protected.

You will also want to make sure that you properly trademark, copyright, and patent all of your business processes and ideas. If your company becomes successful, then you might see knock-offs of your logo popping up all over the place. While the offender is technically stealing your proprietary assets, you can only protect said asset if you have first registered it as yours.

Taking Proactive Measures

Asset protection kits claim to provide simple ways to protect your personal assets. Even so, you are going to have questions, and you will need legal guidance to correctly complete the paperwork. For the most comprehensive asset protection, hire a strong corporate lawyer and employ the services of an experienced tax attorney.

Any business owner who does not protect their assets takes a tremendous risk. One disgruntled customer or employee can easily take your company to court, causing you to lose everything. But when you utilize the right asset protection methods, you can shield your personal assets from lawsuits and make sure that all of your best corporate ideas are protected.