Asset Protection: Why forming a company may not be enough

By Nina Kaufman, Esq.

So you thought you had your bases covered when you formed your corporation (or LLC) for your new business.  But forming a company alone may not be enough.  (Surprise!  Ugh.)

Yes, you wanted to protect your personal assets from business creditors … but are your business assets protected from personal creditors?  Personal creditors can include:

*  Your soon-to-be ex-spouse

*   The neighbor, whose garage was destroyed when your teenage daughter drove your Prius into it after one too many cocktails

*  The credit card company, who’s going after you for defaulting on your payments

If they get a judgment against you personally, they may look to all of your assets … which can include the business you own.

Listen in to this podcast with estate planning attorney Joseph Donlon, Esq. as we talk about:

  • Ummm, what exactly is asset protection?  Is it some offshore scam in the Bahamas?
  • Do you have to be super-wealthy to need asset protection? and
  • Paint me a picture: when do asset protection strategies make sense for business owners?

The short of it:  if you have a business, you have a valuable asset that needs both liability (business and insurance) protection and estate planning (asset) protection.  In advance.

So what did you think of this podcast?  Was it helpful?  Do you have any lingering questions?  Post a comment and let me know!

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