Perhaps you own a home, a valuable car, stocks and bonds or a savings account. Or maybe you own a second business or other valuable assets. Fortunately, with some advance planning, you can often protect many of your personal assets from your business creditors.
Early planning is essential .
It's crucialthat you develop your asset protection plan as early as possiblepreferably before rather than after you begin doing business. Once your business is in operationand especially after it runs into financial troubleyou'll be greatly restricted in the steps you can take to protect your personal assets. Choice of Business Entity As discussed in Chapter 1, when you start your business, insulating yourself from personal liability for business debts and liabilities is one important consideration. This is especially true if there's a strong possibility that failure of the business would leave a huge stack of bills or lawsuits for uninsured liabilities. If you organize your business as a sole proprietorship or partnership, you'll be personally liable for all obligations of the business.