Protecting business assets
As most SME’s are family-owned and operated, it’s vital that your assets are protected from any third party debts. As a minimum, you need to ensure that you have considered the following assets protection – especially when your family home could be on the line:
- Assets are protected from a creditor attack as a result of bankruptcy or divorce
- Business and personal assets are protected for future generations
- Any asset passed to their children are protected from creditors due to bankruptcy or divorce
The key to assets protection is developing an asset protection plan that identifies an appropriate asset structure, tailored to your circumstances. This process will involve the division of your assets into separate entities to avoid the risk of “having all your eggs in one basket”. When transferring assets between entities, however, it’s important you talk to an expert, as you could be inadvertently subjecting yourself to additional taxes.
Assets protection isn’t just about protecting assets, but also protecting yourself from more serious consequences, like ending up in jail for contempt or bankruptcy fraud.
How we can help
Centenary Tax Accountants will help you protect your company’s equity (net worth) rather than the actual assets, by instigating a number of protection mechanisms, such as:
- Setting up adequate insurance.
- Establishing protected entities such as forming a corporation in conjunction with an investment trust.
- Segregating assets to decrease risk and other asset protection techniques.
The process we put in place for you will vary, depending on the category of asset/s you own and the types of creditors most likely to pursue claims against you. In order for us to help, you must be open with our team about your needs, so that we can implement appropriate strategies to protect you and your assets.
For more information on how Centenary Tax Accountants can help you protect your assets, contact us now!