ASSET PROTECTION FOR SMALL BUSINESS
It’s important to identify a scam when you see one. As you know, many attorneys like to play both sides of the field at the same time. On one hand, they advocate for incorporating a corporation or LLC. They tout the benefits, such as limited liability, protecting your personal assets from the liabilities of the business and other issues. Then they attack corporations and LLC’s and find ways to go after the owners, as well as the company itself. This process is called, “Attacking the corporate veil.”
The Corporate Veil
Keep a spiral notebook in your file. Write these resolutions in the notebook. It’s ok to make mistakes. Just make the dates sequential, sign your entries, and be specific. It doesn’t need to be perfect.
Minutes of meetings are done in similar format. Just paraphrase what was discussed and what you decided. Date and sign, and place into the spiral notebook. Spiral notebooks are great because the pages cannot be rearranged without ripping out the pages. If you kept up with the resolutions and minutes, then it’s proof positive that you did it correct.
If you haven’t done so, then obtain a three ring binder. Then start your “company diary” of resolutions and minutes, as you may best recollect them. Keep that on file to prevent problems later. Keep it short, sweet, and to the point. It need not be perfect.
Separation of Assets From Liability
Most times, customers, vendors and employees pose the greatest liability threat to the business. Keep enough assets in the company to meet obligations. When possible park assets in a second entity, that is not exposed to as much liability.
For increased protection, separate assets according to their relative level of liability exposure. High-risk assets such as a medical practice or a restaurant are best separated from brokerage accounts and low-risk real estate investments. A risk-producing asset such as an apartment building should be contained in a separate entity from a residence. This separation takes place by placing the assets into separate entities. This business identity theft toolkit can help you a lot.
For an excellent presentation on the asset protection benefits of a Wyoming LLC, please visit this link: https://assetprofile.com/llc-presentation.swf
IS THIS INFORMATION CORRECT? PLEASE SEE YOUR TAX ADVISOR. CONFIRM BEFORE YOU FILE.
FILING YOUR SHELF CORPORATION OR SHELF LLC IN ANOTHER STATE
NATIONWIDE SECRETARY OF STATES, UNDER CONSTRUCTION
Colorado shelf companies and filing information