b'A Business Owner\'s Guide ToProtecting Assets Geoffreys.Huber, CFP" Manybusinessownersknowdistribute nonvital business assetsafter your death, your family could that incorporating or forming ato the owners, at least in an Ssuffer devastating economic hardlim coritedliabilitycompany(L canporation, LLC or partnership. In a Cshipfrom"\' lostbusinessincome. LC) help shield them from legal liabil corporation,bewareofpaymentsAdequ life insurance may help ate many waysby: ity. But those same business own that could be considered dividendsin- for instance, ersprobablyhaven\'taddressedandcreate a second levelof tax, Providingotherownersor key othercommonasset-protectionsuch as those that are above andemployeesfunding tobuy out issuesthat canaffect their busi beyond normalHaving allyour family\'s interest, salaries. nessesaswelaspersonalyour eggs inbasket could be Headingoffa cashcrisisthat Ione assets.your businessalmostasbadashavingmight otherwiseto a Asleadquick baske atsteep andyouroverallotall.sale of the business at a wealthgrow,newFind a balance.discount, and and different asset Itisn\'t always easy Givingthebusinessthetime protectionques to balance the busi andfundingneededto make tionsarise.Theness\'scashneedsadjustmentsandreturnitto followingtipscanwithyourlon r profitability. gehelp you.termpersonal financial goals.decisionsGo The Distance Devise an asset But Fortify Your Businessconcerningis balance canYouyour family deserve the th and protection plan todayAnd Personal Financialmakeor break your business - same consideration as yo busiur Positionand your personalfinancial state ness.Don\'t let the sp ight sand continue tootl hine Asyoufaceasset-protectionment.Growingandsuccessfultoo long on your busin - pessro review it as yourissues,focusonthe objectiveofcompanies typically need funding.!eelrlas wyou persona assetsell: notonly maximizingwealthbutYou may indeed benefit from keep Considerjointtenancy. To business grows andprotecting it as well:ingasmuchaspossibleof yoursh your home fromreach of ieldthe develops.Buyliability insurance.available assets in the business toyour businessorpersonalcredifalseconsideriftDon\'t fall into asense of secu reduceitsborrowingorcapitaltors,sh ing ownership to rity. The limited liab protectionn could also lend mon your.,ly, shift ilityeeds. Youeyspouse Or alternativeofa separateentity doesn\'tpre back when the business needs it.to tenancy by the entirety in states clude the need for liability insur Be careful, though. Considerwhereit isanoption. Un thderis ance, both forbusiness and foryour personal financial needs andparticular formjoint tenancy, the theof you individually.individ your abi it toprotect your assetssurviving joint tenant still automatYou needI y u umbrella coveragetoprotectfromyourbusiness\'screditors.icallythe h death of the algetsouse on yourself against claims that allow aThis is precisely whyaother joint tenant, buthome is you createdyour "piercingofthecorporate veil."separate entity forbu inprotected from c itors as long yoursinessred as Carefullyestablishamountsandthefirstplace. Youmustdecidether ing spouse continues to su vivtypes of liability coverage for yourwhetherthe risksandyour toler liveth No aljointtenere.rm ancy business designed to its particularance for them dictate that you seekdoesn o the sametection. \'tfferproneeds and asset value, as well asoutfinancing or equity invest Holdassetsinseparate other coverageforyour assetsoutsidement instead.entities. By putting real estate or the business.Buy life insurance. It\'s obvi in e assetsintoa limited vestm nt Separateyourassets.Youousneed to protect your busi partn , you canthyouership protectese wouldn\'toperatethebusinessness and family with a lifeassets to some degree from potendequate separatevendiwithout aentity, so don\'tinsurance.Andpropertypesandtial creditors. E thoughcre tie up all your assets inside youramoun ofinsurance canguardtors canpartnership interests, tstake business, unless you must. Invest your familybeing forced toth willtable to convert their againsteyno be ments,orevenexcessivecash,sel I thebusiness to paypotentialinvestme tocash. Orconsider nt lose any protection as long as theestatetaxes. Butdon stopyour \'t companyownsthem.Therefo planning th . Keep in mind that,ntinued onpage Co next re,ere'