Protect my assets before starting a business?

Question

I want to start a business soon so I have a question to ask here. I have heard of ways to protect personal assets from being taken in a law suit. What are real legal ways to protect personal assets?

Answer 1

Easiest way is to incorporate. Speak with a reputable attorney who specializes in incorporating businesses. A website that can give you some help is www.incorporate.com.

Answer 2

To protect personal assets you usually need to form a corporation.
That is the basics, but there are many business models that allow for varying degrees of personal asset protection. Limited Liability Corporations, LLC.
There may be some forms of sole proprietorships that allow for some liability protection, but I am not really an expert.
Seek professional assistance when starting up a business, or at least real serious research.

Answer 3

You should go to the following website...

http://sba.gov/smallbusinessplanner/start/chooseastructure/index.html

They have the different business structures and what each offers you in the way of protection. Also look into Business Liability Insurance if you are planning to go with Sole Proprietor.

Best of Luck,

Answer 4

As previously stated, contact your local SBA. They have people to help. I just attened a SBA business start up meeting in my area. According to what I learned, if you are sued, they can get to your personal assets in ANY case if your business assets aren't enough. There was an attorney present, and he stated even with a corporation, they can take even your personal assets.

Answer 5

Easy ... set up a corporation, and not a sole proprietorship or partnership. Use an LLC, s-corporation, or c-corporation. That way, if you're sued, they can only take the assets in the business, and not your personal assets.