ArticlesReader.com Menu
Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup
Search the articles

Articles Main Categories
Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing
Subscribe
Receive alert message from us when new articles submitted to our site for free.

Enter your name

Enter your email

Syndicate

















Related Products
Home::Small Business

The Secret To Protecting Your Business Assets

Author : SD Lawyer
Regardless of the type of business you conduct, there is a significant risk of being sued in our litigious society. Lawsuits can range from claims of negligence to defective products to disputes with employees. Incorporating is a means of guarding against these potential threats.



Single Incorporation - Protecting Your Personal Assets



Incorporating your business is a method for creating a legal wall between your personal assets and business. Any judgment against your business will not impact your personal assets. While your home, savings, stocks, etc., are protected, what happens to your business? If a judgment is rendered against your business, the business assets are as good as gone. This doesn’t have to be the case.



Double Incorporation Strategy - Protect Your Business Assets



Many businesses can benefit from pursuing a double incorporation strategy. The strategy is designed to address the situation where a business has significant assets that are exposed to litigation risk. If you incorporate your business, it is all well and good that your personal assets are not at risk. But what if your business has a number of high value assets such as manufacturing machinery, office equipment, popular domain name, custom software or other items? Merely incorporating your business will not protect these assets because they are owned by the business entity. Since a successful lawsuit would result in a judgment against the business entity, all assets of the business could be seized as part of the judgment. In short, you lose your machinery, office equipment, intellectual property or any other item of tangible value. The double incorporation strategy prevents this scenario.



As the name suggests, the double incorporation strategy involves the creation of two business entities. The first is your "at risk" business that interacts with your customers or clients. The second entity, a "holding corporation", is then created to own the valuable assets of your business. This holding corporation then leases the relevant business assets to your "at risk" entity. If the "at risk" entity is sued, the holding company merely recovers its assets and the plaintiff is forced to settle for pennies on the dollar because the "at risk" entity has few assets. In essence, the plaintiff wins the battle, but loses the war.



Most people know that a business entity can be used to create a protective shield for their personal assets. If your business has high value assets, now you can use this double incorporation strategy to protect those assets as well.


Article Source: http://www.articledashboard.com





Richard A. Chapo is a San Diego business lawyer with www.sandiegobusinesslawfirm.com - providing legal services and legal advice to businesses in San Diego, California.





Spam emails More free articles

Related articles


  1. How to Create an Employee Manual
  2. Become The Squeaky Wheel and Watch Your Business Skyrocket!
  3. Keeping a Partnership ALIVE and THRIVING
  4. Finding the PERFECT Alliance Partner
  5. Who Makes the BEST Alliance
  6. A Small Business Consultant Can Help in Many Ways... But One Thing He Cant Provide
  7. Advertising - For Small Businesses (Part 2)
  8. Advertising - For Small Businesses (Part 1)
  9. When to Say NO!
  10. Chamber Membership will BOOST your Business
  11. What are the COSTS Associated with joining Leads Groups?
  12. Tips on Setting Up Your Small Business Bank Account
  13. Debit and ATM Card Advice for Small Businesses
  14. Q and A: Personalized Birthday Cards from Paul Leonard
  15. Small Business - Big Business...What's the Diff?
  16. Making Your Purpose Your Business Step #2- Getting From Point A to Point B
  17. How to Locate, Hire, and Work With an Article Writer
  18. What an alarm clock can teach us about online collaboration
  19. Why do startups and small companies need to attend trade shows?
  20. 11 MONSTROUS Small Business Marketing Mistakes and How To Avoid Them
  21. Your Baby's Ugly..and You've Got Bad Breath
  22. Why Small Business Must Turn to PR
  23. Successful Small Businesses Use PR
  24. Small Business 'No' How - Don't Give Away the Farm
  25. Success Tips for Small Business Owners
More related feeds
How to Successfully Navigate Your Business through an Economic ...
The secondary goal is to grow the business even during this current economic downturn. Objectives: • Conserve cash. • Protect assets. • Reduce costs. • Improve efficiencies. • Grow customer base. Required Action: • Do not panic… ...

Poison or Panacea?
The Fed is buying ‘assets’ you would throw out of your refrigerator. Her majesty’s government is now proprietor of 50 billion pounds worth of banking shares; the government of George W. Bush is preparing to enter the banking business ...

101 Secrets of Home Business Tips!
57) Master your headline 58) What is your most valuable business asset? 59) How to products 60) Understanding Meta Tags 61) Add items to your order form 62) The secret to double the response to your autoresponder messages ...

New, Rebooted McCain: We're Losing Right Now, But Just You Wait
Your savings are in danger. Your retirement is at risk. Jobs are disappearing. The cost of health care, your children's college, gasoline and groceries are rising all the time with no end in sight. While your most important asset - your ...

This Is McCain in Virginia Beach Today
While your most important asset -- your home -- is losing value every day. Americans are fighting in two wars. We face many enemies in this dangerous world, and they are waiting to see if our current troubles will permanently weaken us. ...

hidden cameras have helped many people cruel abusive nannies.
Find out what is going on when you are not at your home or business-get a hidden camera. There are various options that will fit your lifestyle that are available in the market today. You can find any size of secret camera that will ...

IP Think Tank Global Week in Review - General Edition - Friday, 10 ...
Protect your IP rights in China (Philip Brooks' Patent Infringement Updates). Finland. M&M and Taloustutkimus survey of most respected brands in Finland (Class 46). France. Electronic filing of trade mark applications (Class 46) ...

Here's McCain's speech in Virginia Beach
I have a plan to protect the value of your home and get it rising again by buying up bad mortgages and refinancing them so if your neighbor defaults he doesn't bring down the value of your house with him. ...

Patents
Goodwill is a business asset that usually relates to your exit strategy, when you are looking to sell your business. A significant asset to be sold at that time will be your business reputation, your goodwill. Protect it. ...

At “Bloggers Roundtable”, Chertoff Discusses Public’s Role In ...
It reminds me of the Y2K period when the private sector was required to step up and make sure it was protecting its assets. So part of what we’ve been in the process of doing is we’ve set up a committee with the private sector built ...

 


 

2007 articlesreader.com - All Rights Reserved