COVID Funding Tips for Small Businesses
As the end of another year comes to a close and you are getting ready for your plans for 2021, you may be evaluating are all your assets
Here are many of the common strategies that often turn into costly mistakes (that you may not have considered):
1. All your business ventures in one business. Yes, if you are starting and testing 3-4 different revenue streams, that may be ok in one entity but if two or three are really taking off, why put all of that in one business entity (other than it is easier).
Would you put all your investments in one stock? Probably not. Why? Too much risk. The same strategy applies to a business (don’t put all your eggs in one basket).
2. Real estate in your own name (outside your principal residence) even without equity may be a lightning rod for lawsuits, best in a separate
entity. Too much equity from real estate in one LLC.
3. Business with a partner in the same entity as the operating business that you own 100%. At the end of the day, you make your
partner owner of your main company, which may not be what you intended.
4. Holding safe assets or investments outside your retirement plan in your own name/brokerage account or your living trust (remember your
living trust provides ZERO liability protection but protection from probate taxes).
5. Doing business in the U.S. with your home country entity, not knowing that maybe bringing undue liability to your home country business.
It is a great time to form a new complete entity formation (which we do in all 50 states) as you get ready for the New Year.
REMINDER: In January, the Secretary of State’s new business filing process slows greatly, so give your business enough time to get up and to run for
as early as 2021 as possible.
If you need help to form another entity to protect another business or other assets, call NCP at 1-702-367-7007.