Are you taking all the necessary steps to safeguard your wealth?

If you think that formalizing a business structure like a corporation or limited liability company is all you need then think again.

It’s the first step but certainly not the only one.

It’s unfortunate that way too many people have lost everything to a business liability incident which could have been easily been avoided if an effective asset protection plan was put in place.

Now the whole concept behind asset protection is simple. A creditor can only seize the assets owned by a debtor.

In a corporation, the assets are owned by the entity itself so in order for a creditor to seize the assets of the corporation; it must first pierce the corporate veil.

Did you know that corporate veil piercing is the most litigated issue in corporate law today?  

In order to minimize your chances you should follow the three asset protection strategies listed below:

  1. Maintain up-to-date corporate records – Even though the records of each entity have different names, they serve the same purpose. For example, articles of incorporation for a corporation serve the same purpose as articles of organization for an LLC. By maintaining these records, minutes of board meetings, and so on you uphold the integrity of separation.
  2. Record an accurate list of assets owned by your business – You can download the forms and agreements you need on the Allbusiness.com site.
  3. Establish credit in the name of your business – Get listed with the business credit bureaus and start building business credit. By acquiring and utilizing credit solely in your company’s name prevents the commingling of personal and business assets.

While there are many other ways you can further protect your personal and business assets let these three simple yet vital strategies serve as a helpful reminder.

Even though corporations have been recognized as solid forms of asset protection for the longest time the ‘corporate veil’ can be pierced if you don’t take the proper steps to protect it. Remember, losing money is one thing but losing everything is a catastrophe.

What other asset protections methods are you using?

Ready to establish credit in the name of your business? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) 

Similar Posts:

Share