Why not just use insurance and forget incorporating?
Both insurance and incorporation are important. It is wise to get as much liability insurance as you can afford. One of the important benefits of insurance is that it will usually pay for your legal defense, which includes lawyer’s fees and costs, if you are sued. However, insurance has its limitations. There is always the » Continue…
What not to do if assets are important to you.
The attribute of corporations that enables the limited liability protection is the legal concept that a corporation is a separate legal entity, distinct and apart from the owners or shareholders of the corporation. From an asset protection standpoint, there are several things that you need to avoid if you are going to maintain the separation » Continue…
What are some strategies to protect assets?
The main asset protection strategy is to separate different business activities by placing them each into different entities. That way if one of the businesses gets sued, it will not affect the others because they are operated in a separate legal entity. For example, if you owned a plumbing supply business and some rental properties, » Continue…
What are the essential steps to preserve limited liability protection?
A judge will usually consider various factors together (not just one) in deciding if shareholders have operated the corporation properly. The following, although not all-inclusive, is a summary of corporate actions or formalities that are important keys to maintaining limited liability protection. The corporate organization needs to be completed and observed. In a nutshell, this » Continue…
