Are you looking for some strategies to help protect your assets from them? Did you know that one of the leading causes of business failure is creditors? For a business owner, it’s vital to protect your assets from creditors in case something like this happens to you.
Family First Life Strong Tower & Hammer Lane Consultants wants to help you with practical strategies to protect your business assets from creditors in Charlotte, NC.
1) Transfer Assets to Protective Entities
Protect your assets by transferring them to protective entities. This could include transferring them into a limited liability company (LLC) or a trust. This makes it much more difficult for creditors to get their hands on your assets.
Remember, few risks are associated with transferring assets into a protective entity. For example, if you transfer assets into an LLC and then decide to dissolve the LLC, those assets will be subject to division among the members of the LLC. So be sure you understand all the risks before taking this step.
2) Include Asset Protection in Financial Planning Strategy
A good asset protection strategy should be part of your overall financial planning. By working with an experienced financial planner, you can create a plan that will help protect your assets from creditors.
Again, there are some risks associated with this approach. For example, if you go bankrupt, the court may order your assets to be sold to pay off your creditors. Remember to discuss all risks with your financial planner before moving forward.
3) Insure Your Assets
Several insurance policies provide asset protection, including:
- Business liability insurance
- Directors and officers (D&O) insurance
- Errors and omissions (E&O) insurance
- Commercial property insurance
- Product liability insurance
Insuring your assets can help you recover financially if they are ever damaged or lost. You can sign up with a reliable insurance company or speak to an insurance agent about what policies are available to you.
- Use International Asset Protection
Using an international asset protection trust can be a smart move if you have substantial assets to protect. This type of trust is designed to help business owners and high-net-worth individuals shield their assets from creditors in the event of a lawsuit or bankruptcy. There are several different types of trusts available, so it’s essential to work with an attorney specializing in this area to find the best solution for you.
If you’ve been considering a plan to protect your business assets in Charlotte, NC, from creditors, it may be time for an update. Many strategies can provide protection and coverage, but not all will work in every situation or company type. The Family First Life Strong Tower & Hammer Lane Consultants team has the knowledge and expertise to help you find the perfect solution tailored just for you. To get started on protecting your business’s future, contact us today!