Whether you own a business or you have worked hard to buy property and build up assets, you want to ensure you can protect what you have built. The company that you helped to flourish and the wealth that you have created will serve as your legacy, which you can hand down to those who you love… if you take the right steps to keep your company and your nest egg safe.
Hodgkins Law, PLLC is dedicated to helping business owners and those who want to protect their assets. If you need a Maine asset protection and business planning lawyer who can develop a personalized plan to meet your goals, give us a call. We can provide comprehensive assistance with keeping your business and your wealth secure and we can answer questions you may have about asset protection and business planning including:
- What are some key steps to take to protect your business?
- When is asset protection important?
- How can a Brunswick asset protection lawyer and business planning lawyer help?
What are Some Key Steps to Take to Protect Your Business?
Creating a successful business is hard work, but it is rewarding work. You can earn a substantial amount of money from growing a business if you do it right, and you can pass your thriving business down to the next generation.
Unfortunately, there are risks faced by business owners that could affect operations and that could undermine a legacy. Not only is the business at risk if the right steps are not taken, but personal assets could also be affected by problems with the business as well. You can avoid the potential pitfalls that could turn your business into a financial nightmare by getting help from an attorney who knows how to protect your organization.
Asset protection is important to business owners who face substantial personal risk, but it is not the only issue. Some of the different legal tools and options available to protect your business include:
- Creating a buy/sell agreement: This agreement addresses what happens if any company co-owners want to leave.
- Creating employment agreements: These agreements can be used to delineate responsibilities so everyone has their own job and is not stepping on anyone’s toes. This can reduce the possibility of disagreements among co-owners that would affect ongoing operations.
- Incorporating: There are different types of corporation, including C-corps and S-corps. Both types can protect personal assets so you do not face individual liability for a bankrupt company or for business debts. Both can also make the transfer of corporate ownership easier when you wish to leave the company. However, there are different tax rules for S-corps compared with C-corps, so it is essential to get legal help deciding which type of corporate form is right for you.
One of the most important considerations for business owners is what is going to happen to the company when they are gone. Business owners need to consider what the estate tax is going to be and whether their estate is large enough to trigger taxation. If so, a company could be at risk because heirs might not have enough cash to pay the tax bill. This could mean the sale of business assets, which undermines operations. Plans should be undertaken to try to reduce estate taxes in cases where taxes could be substantial.
When is Asset Protection Important?
Asset protection is important whenever you have a nest egg that you have worked hard to build up. While business owners have concerns specific to their situation, anyone with assets could find themselves faced with the possibility of losing what they have worked for.
Without asset protection, a creditor claim or the irresponsible spending of an heir could mean business assets or other wealth is gone in the blink of an eye. Asset protection also helps to ensure that a lifetime of hard work will not be wiped out just because someone gets sick and goes into a nursing care center. MaineCare planning can get nursing home bills covered much more quickly, meaning assets will not need to be spent down before a person has limited enough resources to qualify for the IRA deduction.
How Can an Asset Protection & Business Planning Lawyer Help?
The protection of your assets and of your family business is one of the most important things you can do for your family and to protect your legacy. You need an attorney who you can trust to keep all you have worked for safe and secure. Hodgkins Law, PLLC can help. Contact our Brunswick asset protection legal team for help creating your personalized plan.