Small business owners need to ensure that they talk with asset protection lawyers about how they can keep their wealth safe. There are steps that should be taken both to protect personal assets during the course of the business owners life and to ensure that the company can pass seamlessly onto heirs or beneficiaries after the death, disability, or other departure of the business owner.
Frank & Kraft can provide personalized advice on the asset protection process and can provide assistance making use of effective legal tools so business owners can protect their hard-earned wealth. You should give us a call to get personalized advice on how you can protect your money and property as a business owner. You can also read on to learn about some of the key reasons why small business owners need to ensure they take steps to protect their assets.
Why Small Business Owners Need Help With Asset Protection
Small business owners need to ensure they protect their personal wealth because, depending how their business is structured, a lawsuit against the company or the company going into debt could affect the business owner’s personal funds. Sole proprietors and partners, for example, have no legal separation from their companies in the eyes of the law. This means that when the company is sued for some reason and a judgement is entered against the business, the business owners could find that the plaintiff seeks to collect from their personal wealth if there are not enough business assets.
Incorporating the business gives the company a separate identity in the eyes of the law. As long as the business owners follow corporate formalities such as not co-mingling money and property with company assets, their personal wealth should be safe and their potential losses should be limited to whatever money they invested in the business if a problem occurs.
Business owners not only need to think about how to protect their personal money during the course of their life, but also need to think about what will happen to the business when they pass away. A company often has significant value and most business owners want to pass their business onto their heirs or beneficiaries so the company can be their legacy.
This means a business succession plan needs to be created to address the issues that can arise when a company is transferred. The plan should be set up to facilitate the timely transfer of the business to new owners so the right people can immediately take ownership and control in the event of the death or incapacity of the company owner. If the business is valuable enough that estate tax could be triggered, then it also becomes important to ensure that there are steps taken to reduce or avoid estate tax. Otherwise, heirs or beneficiaries could be forced to sell company assets or even sell the business itself if there is not enough money available to pay estate tax.
It’s important to use the right legal tools and to put smart plans in place to ensure that new owners can take possession and control of the company and that taxes are minimized or avoided so the company can continue to operate long after the death of its founders or current owners.
Getting Help from Asset Protection Lawyers
Asset protection lawyers at Frank & Kraft can provide personalized advice about how to keep wealth safe and secure, no matter what your situation. We help business owners and others who want to ensure that they are able to keep their hard-earned money and property safe and leave a desired legacy for loved ones. To find out more about the assistance that we can offer, join us for a free seminar. You can also give us a call at 317-684-1100 or contact us online at any time for assistance with the asset protection process.
- What Is an Irrevocable Life Insurance Trust? - May 12, 2022
- Dying Is Expensive – How Funeral Planning Can Help - May 10, 2022
- Can the Proceeds of a Life Insurance Policy Be Paid to a Trust? - May 5, 2022