Yes, the family limited partnership (FLP) is often utilized. As the name would imply, people that are part of the partnership must be members of the same family. If you establish a family limited partnership, you would be the general partner, and the family members that you add to the partnership would be limited partners. The general partner would have sole decision-making authority for the partnership. Any asset that you convey into a partnership would be owned by the FLP as an … [Read more...] about Is there any other asset protection structure for small business owners and investors?
Asset Protection FAQs
No, this would be a fraudulent conveyance. … [Read more...] about Can you transfer assets into a limited liability company if you think you will be sued?
One possibility would be the utilization of a limited liability company. This is a relatively simple structure that is often used to protect assets. When you establish a limited liability company, your personal resources would be protected if legal actions were taken against the business, and vice versa. Another advantage is pass through taxation. You would claim business profits and losses on your personal income tax return when you have a limited liability company, so your accounting would … [Read more...] about How can you accomplish this goal?
If you worked for a company as an employee, and the business was sued by a creditor or some other party, your own personal assets would be completely safe. Why should you and your family suffer because of the actions of the business? Conversely, if you were to run into financial trouble, the company that you work for would be not be impacted. The same reasoning should apply when you are a small business owner. You can structure your enterprise in a way that separates your personal property … [Read more...] about Why is asset protection important for small businesses?