This archive report was first published on 15 July 2020.
Protect Your Business Assets with a Comprehensive Plan ¶
As Paul Mwenesi's story illustrates, losing a business can be devastating. To prevent this, entrepreneurs need a comprehensive asset protection plan that insulates their business and personal assets from creditors.
Dr. Peter Mburu, a property lawyer, advises operating under a limited liability company to separate business and personal assets. This ensures that business debts are not recoverable from personal assets.
Here are six tactics to secure your business assets:
- Operate under a corporate veil by registering business assets in the name of the business and keeping personal assets separate.
- Have a business lawyer on speed dial to help navigate legal difficulties and answer questions about business classifications and asset protection.
- When your spouse has many loans, register valuable assets in the name of the spouse with the least exposure to risk.
- Use trusts to protect assets from lawsuits by transferring them to a trustee who manages them for the benefit of the beneficiary.
- Establish a holding company to keep multiple entities separate and limit liability risks.
- Protect your intellectual property by signing an assignment agreement and assigning it to the holding company if necessary.
By implementing these strategies, entrepreneurs can protect their business assets and maintain their identity and authenticity.
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