Well, how many times have you heard an advisor preach on asset protection? There is the answer.
Why in the world do experts tell you to incorporate and create all kinds of plans to isolate yourself from the business of your business? In today’s litigious society, is it any wonder the statistics are as alarming as they are?
Everyone has heard of the lawsuit against McDonalds for serving hot coffee. Just last year in Washington DC, a judge sued a dry cleaner for $ 54 million for misplacing a pair of pants. So, don’t you think a workers’ compensation or slip and fall legal dispute can ruin your business?
What if you were personally liable for all of the business credit and debt? Do you think that could have a big or small impact on your personal credit report? Therefore, continuing to stick with your business finances personally is a catastrophe waiting to happen. The question is how long will it be before the time bomb explodes?
To protect yourself, start taking real precautions to prevent your business from ruining your personal credit and more. That’s how. Create a separate business profile to apply for and obtain credit on behalf of the company.
The first step is to make sure your entity is structured correctly. From an asset protection strategy, a C corporation or limited liability corporation (LLC) makes more sense. This is also true when it comes to applying for business credit.