Although small businesses are frequent targets for litigation, many business owners have not taken steps to protect their personal and business assets from potential litigants and judgment creditors. Although insurance is a tool for protecting assets from unforeseen events and catastrophes, maintaining adequate insurance to completely cover a catastrophic event such as an accident with a company vehicle may render the business financially insolvent. The premiums to maintain such insurance would impair the business from long-term sustainability.
To assist business owners in shielding their personal and business assets in the event of a tragedy, a strategic tax plan can save the day.
From selecting the optimal legal structure to alternative risk management tools, the Strategic Tax Planning process examines the business owner’s unique set of circumstances to construct the tailor-made plan including optimal asset protection.
Some of the client’s circumstances considered when examining the area of Asset Protection within a Strategic Tax Plan may include the following:
- Types of assets held within the company
- Amounts of assets owned by the company
- Assets held individually by the business owner
- Volume of the business
- Number of customers annually
- Location of the company
- Location of the business owner’s customers
Asset protection is an integral part of comprehensive Strategic Tax Planning. Protecting a business owner’s personal wealth and the business assets results in protecting not only the owner’s livelihood or ability to provide for his/her loved ones, but also protects the livelihood of all the company’s employees.