Structures Behind Asset Protection
In this episode of Fast Fix Monday we go through the Structures that we are dealing with in Asset Protection.
In Show 015 – Structures Behind Asset Protection originally broadcast on Facebook Live on Monday 18 September 2017 we explore this interesting topic.
Today we want to expand a little on our last episode about asset protection. We mentioned several times in that episode that creating a separate legal entity is the best method to protect your assets. But we didn’t define what a seperate legal entity really is. Imagine a company called Fred’s Widgets. Fred has developed some intellectual property about for that company. Among that IP is a $300 thousand patent. That patent is very valuable. The problem with having the patent registered with the same legal entity as Fred’s Widgets is that if the company ever becomes insolvent, the patent can be liquidated.
The solution is to create another business called Fred’s Holdings. The patent can then be registered in the name of that new holding company. The use of the patent can then be licensed back to the original company Fred’s Widgets. How does this all apply to you? I’d like for every one reading this to do some investigation into their business. It’s not good enough to simply depend on your accountant or lawyer. Go get some advice about whether you need a separate entity for you intellectual property. If you do, it has to be set up properly.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.