Protecting Business Assets Connecticut

Regardless of the type of business you conduct, there is a significant risk of being sued in our litigious society. Lawsuits can range from claims of negligence to defective products to disputes with employees.

Local Companies

Strategic Business Innovations, LLC
203-494-8467
170 Grieb Rd
Wallingford, CT
Anderson Computer
203-245-5881
25 Boston Post Rd
Madison, CT
WD Enterprises
203-668-3584
724 Boston Post Road
Madison, CT
Action Coach
203-453-1642
74 Leighton Trail
Guilford, CT
CGS Business Financial Services
203-453-5257
P.O. Box 442
Guilford, CT
HarveyMalis Communications, LLC
203 458-0283
321 East River Road
Guilford, CT
Maloney & Co
203-458-4000
1110 Bosotn Post Road
Guilford, CT
Maureen Gaffney
203-453-0732
22 Fernwood Drive
Guilford, CT
Medicalegaleagle, LLC
203-453-6922
P.O. Box 71
Guilford, CT
MMC - Moorlands Management Center
203 457-1945
259 Fitch Hill Road
Guilford, CT

Single Incorporation - Protecting Your Personal Assets

Incorporating your business is a method for creating a legal wall between your personal assets and business. Any judgment against your business will not impact your personal assets. While your home, savings, stocks, etc., are protected, what happens to your business? If a judgment is rendered against your business, the business assets are as good as gone. This doesn’t have to be the case.

Double Incorporation Strategy - Protect Your Business Assets

Many businesses can benefit from pursuing a double incorporation strategy. The strategy is designed to address the situation where a business has significant assets that are exposed to litigation risk. If you incorporate your business, it is all well and good that your personal assets are not at risk. But what if your business has a number of high value assets such as manufacturing machinery, office equipment, popular domain name, custom software or other items? Merely incorporating your business will not protect these assets because they are owned by the business entity. Since a successful lawsuit would result in a judgment against the business entity, all assets of the business could be seized as part of the judgment. In short, you lose your machinery, office equipment, intellectual property or any other item of tangible value. The double incorporation strategy prevents this scenario.

As the name suggests, the double incorporation strategy involves the creation of two business entities. The first is your "at risk" business that interacts with your customers or clients. The second entity, a "holding corporation", is then created to own the valuable assets of your business. This holding corporation then leases the relevant business assets to your "at risk" entity. If the "at risk" entity is sued, the holding company merely recovers its assets and the plaintiff is forced to settle for pennies on the dollar because the "at risk" entity has few assets. In essence, the plaintiff wins the battle, but loses the war.

Most people know that a business entity can be used to create a protective shield for their personal assets. If your business has high value assets, now you can use this double incorporation strategy to protect those assets as well.

About the Author:

Richard Chapo is the lead attorney for the law firm http://www.SanDiegoBusinessLawFirm.com - a firm providing legal advice to California businesses. This article is for general education purposes and does not address every facet of the subject matter. Nothing in this article creates an attorney-client relationship.


Article Source:

thePhantomWriters Article Submission Service

Featured Local Company

Strategic Business Innovations, LLC

Once your ready,let SBI CUSTOMIZE AN Approach that fits your companies needs and Goals

203-494-8467
170 Grieb Rd
Wallingford, CT
www.sbi-llc.com

Choose a partner to Help you through a Tough Transition

Working with SBI, owners of small- to mid-size trades companies acquire the knowledge and tools to optimally run their businesses, thus achieving desired growth and success. Typically, we work with our clients for six months (but many keep us on for much longer), first developing long and short-range business plans, then effectively implementing sales and marketing initiatives, human resource development, financial systems and analyses, operational improvements, and change management. The results achieved provide tremendous business benefits, such as increased sales, sustained profitability, and higher employee morale.
SBI Consulting is dedicated to helping clients achieve their business goals and become more successful. Working side-by-side, we can help you accomplish any or all of the following:

Our Core Services

Increase revenue while improving your sales process ? We guide you through implementing sales and marketing strategies that will generate more business and keep your projects pipeline consistently full.

Boost cash flow and profitability ? We help you find and improve upon the areas of monetary waste that are preventing your business from making more money.

Develop new systems and streamline operations ? We work with you to locate and eliminate inefficiencies in your business operations that are slowing progress.

Reduce costs while upgrading your accounting system ? We assist you with installing an accounting system that is easy to use and manage, will keep your finances in order, and give you a constant view of your overall financial situation.

Attract, hire and retain high-quality employees ? We show you how to find talented professionals, how to train and manage them, and how to ensure they will want to stay with your company.

Enhance company morale and employee productivity ? We give you the tools for developing happy employees and motivating them to deliver quality results.

Improve product/service quality while strengthening customer relations ? We advise you on how to enhance your business offerings to ensure your customers are satisfied and will refer you to others and hire you again







170 Grieb Rd - Wallingford - Connecticut - 06492


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