When you are working with asset protection professionals, their experts might utilize multiple strategies in order to help you to protect your practice and your assets from threats. Even if you have incorporated your practice or have used another legal entity structure to protect your business, savvy plaintiff’s attorneys might possibly pierce the corporate veil so that they can go after the personal wealth that you have worked hard to build. These professionals might take a holistic approach, working closely with you to understand your entire picture so that they can help you protect all that you have by using tax planning, estate planning and lawsuit protection.
Type of Business
An asset protection firm will first assess the type of company that you should set up:
- C corporation
- S corporation
- Limited liability corporation
- General partnership or
- Limited partnership.
This varies, depending on the type of business you have, your specific situation, your assets, your risks and other relevant factors. Seek professional help in order to effectively protect your assets.
Tax professionals must keep up-to-date on the most current changes in the tax code. Asset protection tax experts stay constantly abreast of ever-changing tax rules to make certain that clients are protected. A reputable firm can help with forming a variety of legal entities that will shield your assets from excessive taxes. They also individualize our plans to meet the needs of your specific business and personal estate.
Estate planning professionals familiarize themselves with all of the different estate-planning documents available to use to best protect your estate while minimizing the potential taxes. The federal estate tax exemption is currently set at $5.45 million, and if you are married, both you and your spouse can claim the exemption amount. In practical terms, nearly $11 million of your assets can pass to others free from estate tax. Keeping that in mind, a professional firm can help you with wills, trusts, durable powers of attorney and other tools that can help you to reduce any estate taxes, income taxes or capital gains taxes your loved ones may otherwise have to pay without a proper estate plan.
Unfortunately, people quickly file lawsuits in our litigious culture, especially when they perceive the person or practice they are dealing with to be of means. A knowledgeable firm understands how to protect people like you from lawsuits by using trusts or other tools. By doing so, they can help you place your assets out of the reach of creditors, including attorneys who might represent someone who is suing you in the future.
You must take steps to protect your assets before you are involved in a dispute with the IRS or with a lawsuit. Once the party files the lawsuit, you cannot legally protect yourself. If you wait until you are embroiled in the middle of a legal or financial problem, the presiding court might set aside any transfers that you make. Instead, consider asset protection even if your practice has recently opened.