The risks involve in owning and running a business these days could be quite high and this makes asset protection plans for business owners a necessity. Common risks include mortgage loan default, acts of negligence in the course of work, personal injury claims by customers and various employee lawsuits. At Moss, we make it our objective to ensure that you have the best plan possible to legally protect your assets.
An excellent asset protection plan takes the business owner to a different level, enabling him to compete more effectively with businesses that are more established. One of the most common methods used by business owners for asset protection is the formation of a Limited Liability Company (LLC) but even this has its own limitations as the owner would still be personally liable in certain situations.
Additionally, since a business’ assets does not receive automatic protection by being a corporation, it remains exposed to legal and institutional attacks but by leveraging deep knowledge and experienced, expert asset protection planning, these potentially damaging situations can be avoided. The structure, funding and operations of a business entity should not be left to chance but planned by experts to ensure they are well shielded from liabilities.
Exemption Planning in Asset Protection
Federal and State exemption planning allows an individual to place business and personal assets into protected categories. Exempt assets could be wages, pension plans, residences, annuities, personal property etc and by categorising them as such, those assets cannot be reached by creditors but exemption planning needs to be done before any peril occurs as attempts to take action thereafter may be treated as fraudulent or ineffective by the courts.
Effective asset protection planning that is capable of safeguarding an individual or entity’s assets typically requires a comprehensive strategy comprising a multi-pronged approach to ensure redundancy and present a failsafe shield.
The best time to begin asset exemption planning is even before the business is formed but nothing prevents an operational business from doing this thereafter and while a business already in crisis is not ideal, such situations may still be salvageable if properly managed.