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Now I understand the importance of the business. No, I’m not talking about two lovers, caressing each other right in front of the fireplace (although it must also be important to fire or not). I am about who was arrested while talking business over the phone. Recently I’ve been waiting for my car to my local garage. After they have for one day, I called to get a forecast and see how much this will cost me. I went to the mechanic on my car, and the transfer, I mean that I have the first person to have to go yell at the top of his lungs for a second person on the second path. It is endearing, in a way, but not too professional.
After reaching the mechanic, I was told to wait for a moment while he checked on the status of my car. He then put the phone down (or let it hang, for all I know) and went to get the paperwork. It took him quite a while to get the information he needed, so I was sitting at my desk at work with my ear to the receiver, listening to other mechanics talk about everything under the sun. I certainly don’t mind that, but the profanity I was hearing didn’t really instill any confidence in me that I had chosen the right garage for my vehicle. These guys could have made a sailor blush, as the saying goes. Eventually, the mechanic came back and told me the amount of the bill and what they had found.

I picked my car up that evening. The four or five minutes I spent listening to the other mechanics curse with reckless abandon got me to thinking. I really do believe that ignorance is bliss. It’s not that I’m such a prude that a few expletives will offend me, it’s more about professionalism. When a person feels that the company he or she is doing business with exudes professionalism, it makes one comfortable in doing business. When the situation is otherwise, it makes you wonder if there isn’t someone else you should be doing business with instead.

Regardless of the type of business you do, there is a significant risk in pursuing litigious our society. From negligence claims can claim for defective products to disputes with employees, area. The input is a way to protect against possible threats.

Single Incorporation – Protecting your personal assets

Put your business is a method to provide a legal basis wall between your personal and business assets. Review your company does not affect your personal assets. While your home, savings, stocks, etc., are protected, what happens to your business? If the assessment for your business, homes and businesses is given, is as good as gone. This should not happen.

Double Incorporation Strategy – Protect Your Business Assets

Many businesses can benefit from pursuing a double incorporation strategy. The strategy is designed to address the situation where a business has significant assets that are exposed to litigation risk. If you incorporate your business, it is all well and good that your personal assets are not at risk. But what if your business has a number of high value assets such as manufacturing machinery, office equipment, popular domain name, custom software or other items? Merely incorporating your business will not protect these assets because they are owned by the business entity. Since a successful lawsuit would result in a judgment against the business entity, all assets of the business could be seized as part of the judgment. In short, you lose your machinery, office equipment, intellectual property or any other item of tangible value. The double incorporation strategy prevents this scenario.

As the name suggests, the double incorporation strategy involves the creation of two business entities. The first is your “at risk” business that interacts with your customers or clients. The second entity, a “holding corporation”, is then created to own the valuable assets of your business. This holding corporation then leases the relevant business assets to your “at risk” entity. If the “at risk” entity is sued, the holding company merely recovers its assets and the plaintiff is forced to settle for pennies on the dollar because the “at risk” entity has few assets. In essence, the plaintiff wins the battle, but loses the war.

Most people know that a business entity can be used to create a protective shield for their personal assets. If your business has high value assets, now you can use this double incorporation strategy to protect those assets as well.