California Asset Protection for Small Business Owners

7:56 pm Uncategorized

If you are a small business owner in California, you may already know how difficult it can be to run your business. Aside from all the work it takes to pay overhead, manage employees, market products and services, you must also consider your quarterly profit margins and ultimately determine how well you are doing financially.

One of the many things successful small business owners overlook is the proper separation of assets, including real property, liquid assets, and intellectual property. Without California asset protection, a judgment brought against your business or you as an individual could cost everything you have earned. The way to avoid “getting taken to the cleaners” by a lawsuit or other claim is to protect what you have in separate trusts, companies, and if married, through marital property planning.

Depending on how much you own and how large your business is, you may need to set up multiple California LLCs and trusts to shelter everything from your home to your business equipment, any other real property, and any liquid assets. The way this works best is by separating what you own as much as possible so that if a judgment is brought against one entity in your possession, it cannot go after the assets or monies that are held by other entities you possess.

For example, if someone sues your company by name, they can only take what is owned by that company, and not your personal assets. If the company is an LLC and all it owns is the equipment used to run, the judgment can only go after those assets. Conversely, if someone were to sue you as an individual, they would not be able to go after the assets held by your company, or those held in any trust that is not in your name, including an offshore trust held in the name of a trustee.

If you are a small business owner, consider estate planning ,asset protection in California before something undesirable occurs. Jeff Matsen can design a California asset protection plan for the protection of all you’ve worked so hard to attain. Start today by contacting Jeff Matsen, the Los Angeles and Newport Beach wealth management expert awarded a perfect score from the The Nationally Renowned Attorney Rating Service.

Contact us today and let our Newport Beach law firm help you with all your financial planning needs.
 

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