“Asset Protection Power Tools of the Rich”
Learn how the rich become richer by protecting their business assets. Learn which type of corporate structuring will provide you the most protection.
Asset protection power tools of the rich are LLP and LLC structured businesses. These are the only two asset protection tools to use!
Tip: An S-corp gives you almost no asset protection. Your S-corp can be taken over including your merchant accounts, stocks, etc. C-corps also don’t provide asset protection.
A charging order prevents somebody who sues you from getting anything inside of your business structure if it is properly set up. The business structure should be setup to protect your assets.
Engage in multiple corporation strategies. This is when you set up another company to manage your LLC. You can use this corporation as a way to protect your money. Have this corporation charge your LLC for running your LLC. Therefore, when your LLC is sued there is little or no money left in the LLC because your other corporation has the money now.
Shifting your money in this manner helps prevent people from suing you. The people who want to sue you will end up paying money just to sue you. Their lawyer will tell them that they can sue you and win, but won’t see any money. They won’t see any money because you don’t have any money left in the LLC that they are suing. Not only will the person who wants to sue you not get any of your money, but they will have to pay their attorney for working the lawsuit. So they are paying to sue you! This is a powerful deterrent against lawsuits.
Basically, there are two steps to financial security for your business:
Step #1 Separate your personal assets from your business and investments.
Step #2 Separate your business and investments from each other.
Critical Tip: You have to complete BOTH steps, otherwise you are not protected.
Critical Tip: If you accomplish these steps in advance of a potential lawsuit then it is called tax planning and entity structuring. If you accomplish these steps after a lawsuit occurs then it is called fraud!
Follow these basic guidelines to get started on structuring your business. You will be glad you did when you deter lawsuits and protect your assets.
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ABOUT THE AUTHOR
Matt Bacak began investing his first earnings at the tender age of 12, a young businessman in the making. Now, 15 years later, Bacak survived failed businesses, botched partnerships, heavy credit card debt and bankruptcy - all in preparation for the accomplishments he has achieved today as a well-established Internet millionaire and best-selling author.