As a business owner, the business you have built may represent a significant portion of your net worth. Let us work together to help you grow and protect what you have worked so hard to build.
This is part of a series of posts to help business owners maximize the potential for their business.
Business Owner Protection for the Unseen
Build Your Wealth
- Does your business have a material amount of assets on hand, creating a liability for you?
It is not uncommon for business owners at any point in time to have a significant amount of profits tied up in the operating account of a business. Over the short term, this may be necessary for operations, but over the long term, this can represent a liability for you. These excess profits still tied up in your business could be used to satisfy a judgement against your business. Strategies exist to allow you as the business owner to move these profits to a separate entity (separate from your business and you personally), thereby reducing what could be used to satisfy a judgement against your business. The benefit to you and your family is, this allows you to retain and grow more of your wealth over the long term.
Creditor Protection
- Is your business properly structured to protect your assets from creditors?
Liability events happen when we least expect them; this includes at your business. A proper business insurance program will address various types of liability you may face as a business owner including general liability events, errors and omissions in providing advice (including employee errors), and breaches in cybersecurity protection. What you need as a business owner will vary depending on your industry and how you interact with customers, but failing to plan in this area could result in a liability event for you as the owner that creates business insolvency.
Asset Protection
- How will your business recover from events (like natural disasters) that may be outside of your control?
- Would your business be able to survive if an event caused a significant disruption to your revenue?
Good asset protection for your business is just as important as good creditor protection. A good insurance program will help your business to recover from events such as natural disasters, crime, employee dishonesty, business interruption, and cyber events. Just like with creditor protection, what you need as a business owner will vary depending on your industry and how you interact with customers.
Let Parable Wealth Advisors help you create a plan to address the risk planning needs of your business. We will work with affiliated and unaffiliated professionals to help you implement your plan. Contact us to learn more information.
Note: This post is for educational purposes and does not seek to provide legal and/or insurance advice. At Parable Wealth Advisors, we use our expertise to help business owners and will refer you to a qualified outside professional as needed.
