Business Asset Protection

Written by Rebecca Russell
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The ability to be a success or a failure on one's own terms is what many aspire to in this day and age. This American dream is easily realized in the structure of being a business owner. Business owners feel the highs that come from increased profit and the lows that come from declining sales. If the company is successful, the owner will very often begin to worry about false claims and lawsuits that could leave him or her virtually penniless.

Asset Protections for Businesses

Most large companies practice some form of business asset protection, but a larger company with millions of revenue dollars would not necessarily feel the impact of a lawsuit. They likely have a legal department that can handle any claims without much of a problem or much of a payout. Small business owners, however, have a much higher risk of losing everything if taken to court. For these smaller companies, asset protection is particularly important.

Consider the example of a small, boutique clothing store. Perhaps the store has done rather well in its flagship location and decides to open two more locations nearby. The owner of the store is a family man with a wife and two children. Beyond the three stores, he owns a house, two cars and each of his children has a college fund. Without asset protection, if this man is taken to court and ordered to pay damages to a defendant, no matter how outrageous the claim, he could lose not only his stores but his house, cars and college funds as well.

With protection, the man will keep his business and his personal assets separate. He may choose to put his businesses under a different name or choose to put his personal assets under his wife's name. By taking these simple steps, if his business is somehow sued, his personal assets will be kept safe for him and his family.

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