Asset protection strategies for business owners

We do not usually realise it, but it is not the same to have a thing in asset as in possession. It is known that a Roman law distinction was made between “right to use the thing”, “right of enjoyment”, and “right of disposition”. Although not all are conflicts, there can be many situations where […]
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We do not usually realise it, but it is not the same to have a thing in asset as in possession. It is known that a Roman law distinction was made between “right to use the thing”, “right of enjoyment”, and “right of disposition”.

Although not all are conflicts, there can be many situations where it is advisable to seek professional help. At the time of making a contract, or when buying a home for legal assistance at the time of going to notice or register the property.

There are plenty of litigations that affect businesses and increase the risk associated with owning properties. For this reason, it is extremely important to look for specialised strategies to help you protect your assets as a business owner or building owner.

Here at RS Chase you will receive legal assistance to ensure you are making the right decision regarding your assets and how to protect them from potential future litigations. To give you an idea, today we will provide you with some asset protection strategies we consider are the best when it comes to securing your assets for the long term.

Select the appropriate business entity

If you are operating your business as a sole proprietorship, you do not have asset protection. Instead, you should consider incorporating your business as a limited liability company (LLC) or corporation, which provide this important protection for your home and other personal assets, if your company is sued.

Follow the rules of an LLC or corporation

The selection of an LLC or a corporation for the protection of personal responsibility that both provide is not a set-up or an operation that allows you to forget about it. You must follow the rules to keep your LLC or corporation in good standing. Here at RS Lawyers you will find a professional business lawyer can help you with this because if the entity is not maintained properly, your asset protection will be lost.

Resort to agreements or assignment agreements

Creditors could attack your assets if a court determines that you have operated your business in a negligent or fraudulent manner. When conducting any business transaction, make sure your agreements and contracts are in the writing.

Insurance of the purchase

Having the right amount of business insurance gives potential claimants another goal that can offer them a larger benefit that the one they could get from you.

Consider insurance coverage

Insurance coverage is relatively cheap – usually a few hundred dollars a year for $ 1 million to $ 2 million in general coverage – which can give you peace of mind that what your business insurance may not cover will be served by this additional coverage.

Consider putting assets in your spouse’s name

If your occupation takes more than the average amount of risk, it can be an advantage to put most of your assets on your spouse’s behalf. However, there are pros and cons to this strategy, so you should talk to your business lawyer before proceeding.

Property management can help you protect your assets

There are many owners who have no time or do not want to manage the lease of their property. Many of them ask themselves: will it be a clever idea to leave the administration of my properties in the hands of a broker? The answer is yes, and the benefits of doing so are several, we will name some of them, but we also want to emphasise in how useful this measure is to ensure your properties and assets are protected.

Proper evaluation of tenants: without a doubt, this is the greatest benefit of delivering the administration of your properties to a specialised company. To avoid headaches, you have to evaluate those looking to rent your property. In this sense, companies dedicated to property management have rating systems that allow each of them to be located at a certain level of lease risk.

Professional development of the lease: these companies have the experience to make lease agreements with clauses that protect you and the tenant. In addition, they prepare the minutes of the property -which includes an inventory of the property-, in order for the tenant to return it as it was received.

Direct assistance to the tenant: when hiring the services of an expert company in the matter, the administration of your properties is integral, with what – before any doubt or problem – the lessee should go directly to the company, freeing you of procedures or obligations.

You guarantee the timely payment of the rent: in addition to promoting and leasing the property as quickly as possible, the company is in charge of collecting and managing delinquency rates. Then, enter your profits in the bank account indicated for it.

Analyse the fair value of the lease: the value of the rent must be in accordance with the law and the characteristics of the property. The company calculates it without generating losses for any of the parties.

It guarantees safety: a real estate company can manage the “Secure Rental” with insurance companies. This product covers 3, 6 or 9 months of non-payment rent and processes the judicial eviction in case the tenants breach the contract and refuse to leave the property.

By delegating the administration of your properties, you receive your rent monthly while the company looks after the welfare of the property. That’s why -although you have to pay a small commission- it is the best solution to rent management, if you want to get rid of the procedures related to the lease of your house or apartment.

Here at RS Chase Lawyers we will offer the assistance you require in order to improve your decisions on a daily basis and we will also offer you the protection you need in order to keep developing your business without any external issues. If you want someone to take care of the legal part in an effective way, contact us today for more information.