Asset protection planning can help shield you and your business and help to level playing field. Large businesses have teams of lawyers and accountants constantly looking out for their best interests. The problem is, most small businesses don't have access to the same resources. Moreover, many are unaware of the protections granted to them (and all businesses) under law. This can put small business owners at a distinct (and unnecessary) disadvantage in the world of commerce, leaving them exposed to risks that may be completely out of their control.

Small Business Assets

However, it needn't be this way. To this end, Keith Eck Financial has compiled a set of strategies and helpful advice that, once executed well in advance of any trouble, would help preclude the need for a guardian angel to bail you out of any worst-case scenario.

In addition, these asset protection planning strategies are equally available to debtors and creditors alike, and wise entrepreneurs should engage in these strategies, no matter which side of the relationship they are on. But for the purposes of explanation, the discussion that follows is told from the debtor's point-of-view.

Armed with this knowledge, small businesses should truly be able to compete on that same "level playing field" with their more well-heeled and more powerful counterparts, resulting in a better chance of success and a lesser chance of financial ruin, if things go terribly wrong.

Risk Assesment Plan

Are Your Assets at Risk? This question sets the stage for the business strategies and to understand how a debtor can lose assets to a creditor.

Limiting Liability in Your Business Structure
You can explore different strategies when initially forming, structuring and funding your business operations, by choosing the type of entity, where to form it, and how to fund it or get financing. This can have a tremendous impact on how secure your personal and business assets actually are. In addition, minimizing income and estate taxes is a form of asset protection (here it's the government, and not some creditor, going after your wealth), and proper business formation and structuring can go a long way toward reaching that goal.

Of course, if your business is already established, nothing prevents you from going back and applying these strategies going forward.

Avoiding Day-to-Day Liability Risks
There are many risks inherent in operating a business. We can help to get you professional advice on how to avoid (or at least minimize) your exposure to these risks. Primarily, these strategies urge business owners to avoid leaving vulnerable, unprotected assets within the business entity that could later be seized after defaulting on a contract, committing a tort (negligent act) or having the veil of limited liability pierced by a court. In addition, strategies are given for dealing with that inevitable day in court, something most successful business owners will be unlikely to avoid because of the nature of business dealings and the rules of our current system of justice. Finally, insurance is discussed as your last line of defense.

To be sure, comprehensive asset protection planning is a very complex topic that touches on almost every aspect of business ownership. Your individual plan will depend on your comfort level and specific goals for your business. But the goal here is legal protection of your hard-earned assets. Every reputable, honest business is allowed these protections.