The Top 6 Dangers Lurking Behind Your Business

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In today’s uncertain financial climate, is there any way to be sure your assets are fully protected? Many business owners, and those who may be considering a startup venture, are unaware of hidden risks that can erode or even erase everything they’ve worked for with virtually no warning.

Fortunately, there are simple, practical steps you can take. By having the right protections in place at the right time, you can ensure that your assets and your peace of mind are secure. Here are the top 6 areas where your assets may be exposed:

  1. Operating your business as a sole proprietorship. In addition to paying higher tax rates in most cases, sole proprietorships are targeted by the IRS for audits more than any other business structure. IRS statistics show that sole proprietorships are more likely to understate income and overstate expenses. This is where many get flagged for writing off hobbies as business expenses. This risk will increase with health care reform and an incoming wave of new IRS agents.
  1. Owning safe assets in your own name. Even though they may have nothing to do with your actual business affairs, any asset held in your own name, such as stocks or precious metals, could be tied up (or lost) in a personal lawsuit. It’s a common myth that living trusts or “dba” operating companies can protect the assets or investments you hold in your own name from liability.
  1. Owning intellectual property in your own name. As with safe assets, holding IP in your own name is also a risky strategy. All the time, materials and sweat equity you’ve invested in any system, product or body of work could be taken away from you if it’s exposed to litigation.
  1. Domain names. In today’s internet economy, many entrepreneurs rely on domain names for a substantial portion of their income streams. Even something as random as a liability claim from a car accident could cripple your business if they go after your domain names for recovery. Although it may seem like a simple way to save time and money in the beginning, the worst place to hold domain names is in your own name or in the operating name of your business.
  1. The ownership of your current company. Even having a separate entity like an S or C corporation does not guarantee protection for your assets or investments, unless you have the proper structural details in place. Many “one price fits all” online incorporation services fail to ask important questions that could mean the difference between security and exposure. Certain high revenue and profit LLCs may be at risk also.
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Are Your Assets & Business Totally Protected Going into 2013?

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Are Your Assets & Business Totally Protected Going into 2013?

Do You Need to Form Another Entity in January to Really Protect Your Assets? Or, Are You Starting Another Business?

As another year comes to an end, we hope yours was successful and you are looking forward to the New Year.

As part of your New Year goals and plans it is really important to determine if there are other areas to protect your business or assets. Let me ask you an important question that comes out often this time of the year.

Are you considering forming another entity in January (or December)?

Here is a list of the Top 10 Areas to Protect Your Current and Future Assets and Form another Entity.

Here are the top reasons our research shows you should consider:

10. An LLC to protect the stock of your C Corporation. Even if your living trust owns the stock of the C corporation that will not provide protection from liability (the exception is a Nevada C corporation because Nevada is the only state in the country with the charging order protection for corporations). Are you a part of a C corporation as a majority owner with other partners? How do they hold their ownership interest? If they own it personally that is an issue. Don’t let happen to you what did to a prospect a few years ago when he lost his $3 million computer company from a personal lawsuit!

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Are all Your Assets Protected and Estate Planning Completed? July Special Opportunity…

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Are all Your Assets Protected and Estate Planning Completed? July Special Opportunity…

Here are the Top 6 Areas where Your Assets May be Exposed:

  1. Operating your business as a sole proprietorship. Not only are all your current and future assets exposed you are risking an audit especially with the new health care plan being approved (over 16,000 more IRS agents are being hired for more audits).
  2. The ownership of your current company (especially if you have a S or C corporation). High revenue and profit LLCs may be at risk also).
  3. Domain names. If you have any value in your “virtual real estate” the worst place to hold your domain names is in your name personally or the name of your operating business.
  4. Safe assets being owned in your own name, living trust (does not protect assets or investments from liability) or operating company.
  5. New joint ventures operating through your current operating business.
  6. Your intellectual property owned personally.

Do you see an area where you may be vulnerable?

Here is what your current or future assets
are up against:

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