MOBE Training: Two Things You Should Do to Protect Your Business Assets

A lot of small business owners will neglect protecting their assets until a claim against them arise; a useless and dangerous move, because if you transfer assets after a claim is made, it can be viewed as fraudulent, raising other claims and charges against you. The best time to protect your assets is now, when there are no claims against you, hence you are not forced into hasty decisions of making assets transfers that may turn sour on you in future. Below are a two ways you can protect your business assets.

      1)      Form A Limited Liability Company (LLC)

An LLC is a business structure where you cannot be held personally accountable for your business’s liabilities and debts. In an LLC, you need to have a separate account for your personal assets, and only conduct business in the company name, instead of your own.

The LLC protects your personal assets from your business liabilities and vice versa. If you have personal debts and the creditors seek to seize your asses, an LLC may help keep your business assets safe.

Be careful not to try to shield your personal assets from your personal creditors by putting them into your LLC’s account because the creditors can claim your LLC as an ‘alter ego’ of you and come after your business assets too.

      2)      Get Insurance

Insurance is one of the most important type of protection you can have for your business. There are so many things that can happen which can cause a lot of problems for your business. Your employee might get injured at work and decide to sue, your product might cause harm to a customer, a fire might break out and destroy all your machinery. All this will set your business back a lot, it can cause loss of productivity, thus loss of profit. Insurance can help recover some of these losses, and the impact to your business won’t be as severe.

Final Thought

Neglecting to protect your assets is setting your business up for problems in the future. The array of things that can happen is so large you can never predict and avoid every single one of them, so it is better to always be protected.