Asset Protection

Entity Formation, Agreements, Succession Planning

No one goes into business wanting to lose their shirt. Yet, in today’s litigious society, how do you prevent such serious possibilities? The answer is layers.

Be aware, States offer varying degrees of protection. Illinois offers certain protections for business owners, but other States offer more. Think about the types of business vehicles that may be utilized as well as the ownership arrangement. The appropriate type of business vehicle for you depends on a great deal of factors including: Who’s contributing to the business and what do they offer? Who’s going to get what from the business? 

Bear in mind you want to place assets of varying types into different business vehicles. For instance, it is preferable not to have a large investment account held in the same vehicle as rental property. The inherent risk of each is quite different.

Certain business vehicles have been around for a long time, such as the “S” corporation. However, new ones keep emerging, such as the limited liability company. Depending on your needs, the options are almost endless.

Illinois allows you to hold your personal residence as Tenants by the Entirety. Other States, such as Delaware and Florida, allow you to hold everything as Tenants by the Entirety. This is a special type of ownership only available to married couples, including civil unions.

Proper asset protection should be a thorough discussion between the client and attorney, strategizing and implementing for favorable outcomes.

Contact Kerkstra Law Offices, LLC (312.285.9147) for valuable guidance in maximizing the benefits derived from the fruits of your labor.