Not too long ago I was engaged in a conversation with a business associate who is in the business of teaching doctors and dentists about asset protection. I found it quite interesting to hear him “sing the praises” of a specially drafted “family limited partnership” as the single most effective answer for asset protection. In his words, “Nothing is better.”
Now, I’m not here to criticize or unfairly judge. After all, I used to work with the guy in that same business and I would spout the company mantra as quickly as anybody. But, my thinking has changed.
More accurately, my perspective has broadened. I now see the world of protecting your personal assets from the liabilities of your business more like a doctor sees his patients.
Good doctors don’t have one “silver bullet” or “cure all” solution to make you better when you’re sick. They will take the time to properly diagnose your symptoms and then prescribe a remedy.
Effective asset protection and business protection will do the same thing. There is not a “one size fits all” answer for protecting your assets. It’s more likely to be a well-orchestrated plan comprised of several different elements.
Before standing up and cheering for a limited partnership, or proclaiming the glory of a Nevada C-Corporation, or grand standing for the beauty of a Wyoming LLC, be sure you’ve gone through the right diagnostic steps to determine your goals, your purposes, your present circumstances, and – of course – the right tools for the job.
Filed under: Uncategorized | Tagged: asset protection, business protection, estate planning, lawsuit protection, lawsuits, personal liability, small business
