Unfortunately, running a small business doesn’t come without risk. You need a foolproof plan in place to protect your business from any possible asset loss. There are several strategies that can help you set this up, both financial and legal. This year has brought business to a halt in many fields, and it’s important more than ever to protect your company. Here are five ways to ensure your business assets are safe.
Choose the right business entity
Create a business entity such as a Limited Partnership or Corporation. This way you will able to transfer all your business assets under the name of the company. A limited partnership, for example, means that you’ll only be liable for investments you’ve made in the business. Corporations help you to protect your personal assets. Here are some more examples of types of business entities.
Separate personal and business assets
There is a term in business that separates your company from shareholders, known as the corporate veil. It’s vital to keep your personal and business assets separate so that you don’t have all your eggs in one basket. This involves separating your accounts, keeping everything in the company name, and maintaining your corporate logo.
Protect your intellectual property
Your intellectual property needs protection as well. This refers to any inventions, literary or artistic projects, symbols, names, and other products your business has created. Protecting your intellectual property means that other people won’t be able to steal these. Copyright, patents, and trademarks are all examples of intellectual property protection. It’s advisable to work with an intellectual consultancy firm such as GHB Intellect, who can take care of your intellectual property management for you.
Always use contracts and follow procedures
Ideally, you want to avoid any loophole or fraud in your procedures. Make sure your business is protected by proper leasing agreements, official contracts for every project, and keep everything above board. Always work with licensed, bonded, and insured professionals. To be on the safe side, consult asset protection specialists and legal and tax advisors.
If there’s any gap or discrepancies in your business history, this could make you liable legally in the future. It’s better to spend more money now and make sure everything is done according to the correct procedure, even if it takes longer.
Another way to ensure your business assets are protected is with umbrella insurance. It’s a cost-effective way to obtain significant extra liability coverage. Umbrella insurance provides coverage for everything your other insurance policies have left out. This will help you keep hold of your assets in the case that your other policies can’t cover the settlements. It goes without saying, however, umbrella insurance won’t cover any negligent, fraudulent, or criminal action.
These strategies are only recommendations and a small snippet of the legal details concerning asset protection. It’s essential to seek professional advice in securing your company. With your assets protected, you can have the peace of mind you need to focus on growing your business.