What Can Keep Your Small Business From Being a Nightmare?

I just spoke with a real estate tax attorney that called me regarding a client of his that has an IRS issue because his client filed a joint tax return with his wife who was a small business owner. Now, this client is personally liable for a tax debt that really was his wife's debt from her small business.

In today's economy, the above example is frequent and asset protection legal advice is essentially for small business owners and their families. Many small business owners began their business ventures with great dreams and after a few years, their initial dream becomes a nightmare. The above example in paragraph 1 is just an example of many examples of problems that afflict small business owners.

There are several things that can be done to minimize liability risks for small to medium sized business owners. The first thing is to incorporate your business. The second thing is never own your own business in your personal name. This is important because in the case of a lawsuit, your creditor will name your business and you personally. If your ownership interests was an S corporation, your S corporation would be named. Thus, the difference is in the first instance, your personal assets are exposed.
In other second scenario, your personal assets are protected and your business assets are only at exposed.

The second thing is place your house or real estate into a Private Land Trust. This prevent liens and judgments from being placed on your property. This strategy is not without weaknesses and therefore, it is important in many cases to combine this strategy with others.

Sean Robertson is an small business and asset protection attorney in downtown Chicago, Illinois. Sean Robertson can be reached at (312) 498-6080.