COVID Funding Tips for Small Businesses
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- New joint ventures running through your current operating business. There are many reasons why a second or additional entity makes sense as a simple and affordable way to put a firewall around your most important assets and investments. Certain products or services may carry higher liability risks, and there may be separate intellectual property to protect.
Do you see an area where you might be vulnerable? You are most likely on great terms with all your friends and business associates and you might be thinking that your business is too small to be a target, but consider these sobering statistical realities:
- There are nearly 80 million lawsuits filed every year!
- Frivolous lawsuits cost the U.S. over $200 BILLION per year!
- Internet lawsuits are increasing more than ever before!
- As the economy struggles with massive debt, lawsuits will increase to all time levels coming soon.
If you’d like to schedule an appointment to learn more about asset protection, we invite our readers to call NCP today at 1-888-627-7007. Anyone who incorporates (or adds an entity) through NCP by March 29th is eligible to receive FREE estate and tax planning bonuses worth nearly $1900. Either way, we’ll be very happy to talk with you and review your individual business situation.
Why an estate planning bonus?
This is another area where far too many business owners are at risk. If you own your LLC or corporation in your own name, your business holdings could be tied up or lost in probate in the event that something happens to you. It’s a little known fact that your heirs could lose up to 93% of the inheritance value you’ve worked so hard to build!
NCP has aligned with one of the world’s most respected estate planning experts, attorney and CPA Joseph Dadich, to bring you an estate planning package worth over $1,600 – at no cost to you if you incorporate or add an entity with NCP. Here are the valuable tips you’ll get:
- The 3 Myths of Estate Planning
- The 5 most important documents everyone must possess?
- The shocking truth every responsible family needs to know
- The common and costly mistakes people make when they name a guardian
- What happens if you die without a will or a declaration of guardianship for your kids
- What happens to your business with no estate planning in place
In addition to this comprehensive estate planning information package (which includes a 30-minute personal consultation with attorney and CPA Joseph Dadich worth $499) we’re also giving away 12 months access to Sandy Botkin’s TAXBOT tracking application – an additional $239 value!
If you have not formed an LLC or corporation or think you might need another entity to address one of the six risk areas we covered, call NCP immediately for a no-obligation appointment to review your situation. NCP incorporates in all 50 states and if you do decide to incorporate through us, you’ll be eligible for the tax and estate planning bonuses worth nearly $1,900.
Make sure your business is fully protected. Often the basic incorporation steps required to open a business account with a bank are not enough to protect your assets from other serious tax and legal risks. In most cases this can be corrected easily and inexpensively, but the longer you wait the more the risk goes up.