Put It In Inc.: Using Corporate Formation to Shield Assets

December 3, 2013

Without the proper protection, a single claim against a person’s business can cause financial ruin for the owner. Importantly, a person’s business extends to more activities than you may think. If you have a partnership, small business, or even a hobby that earns you money, consider following the asset protection strategies offered in this recent article.

First, if you have a partnership, consider incorporating it. As the article explains, “business partnerships are ticking time bombs.” This is because a partnership is akin to a joint account, in that actions taken independently by your partner may affect you as well.

If your partner faces a personal liability lawsuit, the plaintiff could seek to collect against all of your assets as well. Conversely, the owners and managers of other business forms such as LLCs and corporations do not face personal liability for claims against the entity or each other.

Similarly, if you have a small business, hobby, or part time job for which you are self-employed, consider incorporating that as well. Again, the incorporation will shield the business assets from claims against you personally. It will also shield you personally from claims made against your business.


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Your Tax Return Is a Roadmap: What to Review Before Year-End

Your completed tax return can reveal planning opportunities before year-end. Review investment gains, business income, retirement contributions, and estimated tax payments with your tax and ...

<p>The post Your Tax Return Is a Roadmap: What to Review Before Year-End first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Business Owners: Five Financial Conversations to Have Before December

Before year-end, business owners should review profit projections, cash reserves, major purchases, retirement plan funding, and personal financial goals with their advisory team. The start ...

<p>The post Business Owners: Five Financial Conversations to Have Before December first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Before You Make a Year-End Financial Move, Ask How It Affects the Rest of Your Financial Picture

Before making year-end tax, investment, retirement, business, or charitable decisions, consider how each move affects your broader financial picture. Year-end financial planning often starts with ...

<p>The post Before You Make a Year-End Financial Move, Ask How It Affects the Rest of Your Financial Picture first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>