Asset Protection

Can restructuring protect my assets?

Yes, there are a number of ways to protect your assets. If you are a proprietor, you could transfer your business to a company and your personal (non-business) assets would be protected, subject to any personal guarantees you might have to give. If you run your business through a company, then you could use a holding company. The profits of your active company are paid to the holding company, which are out of reach of your creditors. This process can greatly reduce any legal liabilities in this regard. If the operating company needs funds, the holding company can loan the money to your operating company and take back security over the operating company’s assets. The holding company can be set up after the fact, depending on certain criteria being met. Your operating company must have sufficient “safe income” to allow for this to occur.

To discuss Asset Protection methods and strategies, and whether they might be a good option for your business, Contact Us today.