How Business Attorneys Help Protect Personal Assets

Business attorneys provide invaluable assistance to entrepreneurs and investors who want to start their own company or who want to invest their money in a business. Owning your own company can be on of the single best ways to make a living, but it is not without risk. Before you take the leap, you ned to get the right legal advice so your personal assets won’t be at risk and so your losses will be limited. 

Brown & Charbonneau, LLP understands the risks that business owners face and we know how to help you use all available legal tools to mitigate those risks. We are committed to helping entrepreneurs, start-ups and investors to move forward with innovative and economy-growing ideas without risking losing everything.

Give us a call today to speak with an Irvine business attorney to get started in keeping your personal wealth safe as you embark on an exciting business venture.

Risks Faced By Business Owners

Business owners face substantial risks both because of their investment in a company and because their company is a valuable asset.

If your company becomes profitable, you could find yourself in a situation where your interest in the company pushes your estate over the excludable amount for estate taxes. This means when you go to leave a legacy for your children or other heirs, a significant tax bill could occur and heirs could end up forced to take out a loan or even sell their ownership interests.

If your company does not become profitable and your business ends up being badly in debt, your personal assets could be in jeopardy. Unless your business is viewed as a separate legal entity under the law, you will not just be able to declare bankruptcy on your business. Instead, you will simply have to declare personal bankruptcy in most cases. All of your own personal wealth could be in jeopardy in a bankruptcy proceedings.

A lawsuit against your company could also affect your personal wealth. When you and your company are considered the same legal entity and your company is sued, you could find yourself with a judgment against you that the plaintiff could try to collect by going after your personal assets.

How Business Attorneys Can Help Protect Personal Assets

You do not want to take a chance on losing either your personal assets or on losing any of the value of the business. You need to be concerned about protecting your ownership stake in your company from divorce, bankruptcy, creditor claims, estate taxes, and irresponsible heirs. You also need to be concerned about protecting your personal assets in case your business goes into debt or is sued.

Business attorneys can provide assistance with all of the unique issues that business owners face. Brown & Charbonneau, LLP provides you with comprehensive advice both for protecting personal wealth and for protecting your company’s financial security.

One of the most important things a business attorney can help you to do is advise you on whether incorporation is a good solution for asset protection. You can incorporate your business by following the requirements set forth by the California Secretary of State.

When you have incorporated your business, your company is no longer considered to just be an extension of you. Instead, the company becomes its own legal person. Unless you co-sign or personally guarantee debt, your company debts will not be considered to belong to you. As long as you maintain corporate formalities, judgments against your company should also not affect your personal wealth or personal property. Your potential loss should be limited to the amount you have invested in the company.

Incorporation can be a big benefit both for protecting assets and for making it easier to transfer your interest in a business. You should talk with Irvine business attorneys about how to go through the incorporation process and about whether incorporation is right for you.

Getting Legal Help from Irvine Business Attorneys

You cannot afford to take a chance on putting your personal assets at risk just because you want to take a chance on achieving the dream of owning your own business. Brown & Charbonneau, LLP will help to make sure you never have to make the choice between your own financial security and starting a business.

Our Irvine business attorneys will help you to keep your personal assets safe, no matter what happens to your company. To learn more about the ways in which we can help business owners and investors in companies, give us a call at (866)237-8129 or contact us online today.