Owning and operating your own business is the dream of many, but it does not come without stress and risk. Many fear that business ownership brings with it too great a risk of exposure to creditors if debt becomes an issue.
Don’t let the threat of financial risk stifle your entrepreneurial spirit, and don’t wait until a problem arises before seeking the assistance of a qualified corporate lawyer like your Legal Sherpa® from Yeti Law. By planning early, and involving a knowledgeable corporate lawyer with experience in asset protection, you can help to mitigate risk and protect yourself and your personal assets from creditors.
Seek a Trusted Toronto Lawyer to Help Protect Personal Assets
Debts, lawsuits, and other unforeseen claims against the business, if not adequately planned for during the creation of the business venture, may leave you personally liable. Leverage the expertise and experience of your Yeti Law Legal Sherpa® when launching your business venture, and build in protection from the start. Never wait until the last minute, or wait until an actual problem has arisen. In some cases, taking action and making structural changes after a claim has arisen can lead to even further problems. It may take extra time and effort, but your Legal Sherpa® will always strive to proactively anticipate problems and plan accordingly, so that you aren’t left reacting to them.
The basic organization and structure you choose can have a profound impact on the level of personal protection you’re afforded. Your Legal Sherpa® offers guidance to help you decide which structure best suits your business and leaves you most protected. From sole proprietorship to limited liability partnership, you should know which structure best suits the needs of your business, and best protects your personal assets. Your Legal Sherpa® can help.
Know What’s at Risk
Your Legal Sherpa® can work with you, and assist you in keeping detailed inventories of all assets. They can help you understand the scope of what’s at risk, and what (if anything) has the potential to be taken away in litigation, and they can help you to plan accordingly.
What Insurance Will and Won’t Cover
Insurance can protect against unforeseen lawsuits that may be brought against the business, but there are limits. It’s important to know what these limits are in order to choose the best policy to fit your business.
Personal guarantees can be highly restrictive, but in some cases you may be required to provide a personal guarantee by a lender. Involve your Legal Sherpa® right away, as your lawyer may be able to help you limit the extent of the guarantee and limited your personal exposure.
RRSP’s and other savings and retirement funds may end up at risk. This can be especially frightening for anyone relying on an RRSP for their retirement income. Your Legal Sherpa® can help you devise a strategy to protect these savings with the use of a segregated fund.
Couples (married or common law) can rearrange property ownership to protect assets. Transfer of ownership is a fairly common strategy, and can be a fairly safe and easy course of action given the regulations that govern divorce and the division of assets. Your Legal Sherpa® can provide assistance if this is a strategy you wish to pursue, and will also explain any possible risks associated with transferring assets.