The very definition of an entrepreneur is someone who takes risks. Natural innovators see opportunities where others do not and invest large amounts of time and money in making ideas a reality. While your dedication and hard work can reap huge rewards, protecting your assets as an entrepreneur against liability and losses is a top priority. At Johnson Law Group, we are dedicated to helping clients preserve what they work hard for to achieve. This includes recommending proven asset protection strategies for entrepreneurs. To find out more about avoiding liability and preventing losses, consider contacting an experienced estate planning and asset protection attorney at Johnson Law Group at (720) 463-4333 or Text-to-Chat (720) 730-4558 today.
The following details five strategies for protecting your assets as an entrepreneur. While you should consider obtaining the advice and help of an experienced legal professional, all of the following options could potentially help an entrepreneur avoid business liability and losses.
One of the first steps to take in protecting your assets as an entrepreneur is to choose the right structure for your business. Options include:
The Internal Revenue Service (IRS) advises that entrepreneurs should carefully consider both the legal and tax ramifications before selecting a business structure. For this reason, visiting with an experienced estate planning and asset protection attorney can be an appropriate option for protecting your assets as an entrepreneur.
A keen eye for detail when it comes to recordkeeping is one of the most underrated skills when it comes to protecting your assets as an entrepreneur. Entrepreneur advises that keeping all personal and business transactions plays a key role in this process. This includes:
At Johnson Law Group, our legal team strongly encourages entrepreneurial clients to make use of legal contracts as a means of protection in all their transactions. This includes:
Contracts should clearly define the terms of legal agreements, including the names of all parties involved, their individual rights and obligations, when the contract begins and ends, the consequences of terminating the contract, and how any potential disputes will be resolved.
A 2019 Forbes report talked about how important barriers are in protecting your assets as an entrepreneur. The right business structure, sound recordkeeping practices, and legal contracts are all examples of barriers that help reduce liability. Equally important are buffers, which help you avoid major losses if a worst-case scenario does happen.
Insurance provides a barrier against unexpected events and can be a smart investment for entrepreneurs. Among the various types of policies you may want to consider putting in place include:
Protecting your assets as an entrepreneur means eliminating any potential risks that could jeopardize your business or your profits. A trust is one of the most useful tools in shielding income, property, and other assets from creditor claims and lawsuits.
Our estate planning attorneys frequently recommend using trusts as a means for clients to avoid probate and provide for loved ones in the event of their passing. As the name implies, you can revoke (change) this type of trust at any time and are still considered the owner of any funds or property it contains.
An asset protection trust differs in that it completely transfers ownership of your business or other assets to a third party, or trustee and is irrevocable. This makes it immune to creditor claims or legal judgments. It also provides important estate tax protections.
At Johnson Law Group, our experienced estate planning attorneys provide trusted legal guidance and unparalleled client service and support. To learn more about protecting your assets as an entrepreneur, consider calling a legal professional at (720) 463-4333 or through Text-to-Chat (720) 730-4558 today.