ASSET PROTECTION TIP and TWO REASONS TO FORM AN ENTITY

Posted on September 19, 2008. Filed under: -- Entrepreneurship And YOU, -- Uncategorized, . More Resources For YOU! | Tags: , , , , |


By Molly Greaves

I’ve been learning a lot about asset and privacy protection, studying various structures from Sole Prop to Dynasty Trusts, including structures not currently available in my state of Texas. I have a lot of personal real estate goals for my future, and want to make sure I have the correct protection for the near and distant future.

Here’s a summary from all of the information I’ve taken in that I think is important for you to understand, even if just a sole prop.  I kept this list short and sweet to be sure you read it all =)

It often makes sense to make the investment and take the time to realign ownership of your assets. 

What I mean is: OWN NOTHING BUT CONTROL EVERYTHING.

From a legal perspective, you can only lose what you own. 

Most people don’t realize how much difference it can make to realign ownership of selected assets. 

It’s the way in which you hold your assets that can create problems or keep you free of hassles later. 

 

TWO REASONS TO FORM AN ENTITY

1. Legal Reasons for limiting liability risk.

2. Tax planning so that business revenue can be taken as a profit or set aside in an accelerated investment plan. 

**Don’t forget: It is the taxpayer’s responsibility to lower his or her own tax liability. 

** It is also said that a corporation can deduct any general related business expense, so tax liability can be achieved through good money management.

 

TYPES OF PROTECTION NEEDED IN LIFE

Financial, tax, business, legal, retirement, insurance + privacy

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