(513) 916-1600The journey of a business owner is one of passion, dedication, and innovation. As business owners, prioritizing the safety of your assets is paramount.
In the U.S., over 29 million businesses thrive, according to the Small Business Administration. If there’s a lesson to be learned from these enterprises, it’s that business owners need to prioritize asset protection. Allow the team at Krugler Law to guide you seamlessly through Ohio’s laws, ensuring your business’s absolute security.
Distinct Business and Personal Realms
Merging personal and financial interests could spell doom for business owners. The distinction isn’t solely about formalizing your business structure. Simple steps such as maintaining separate bank accounts for personal and business expenses, and using distinct credit cards, are vital. Such demarcations become even more critical if you’re planning to establish an LLC or other corporate entities.
Choosing the Right Business Framework
Many businesses kickstart as sole proprietorships. While it’s a practical initial choice, as your business grows and you collaborate with contractors or employees, the legal intricacies multiply. Here are some structures business owners can consider:
- C Corp: A clear division between business and personal assets, involving shareholders and a board of directors.
- LLC (Limited Liability Corporation): The owner’s tax return reflects the profits, offering protection from personal liabilities.
- General Partnership: A mutual agreement involving at least two individuals, where each partner shares the business’s liabilities.
- S Corp: Business profits are directly passed to owners or shareholders, ensuring taxation occurs only once.
The Significance of Business Insurance
Insurance isn’t merely a health or life necessity. Business owners need to view business insurance as a shield, guarding against potential lawsuits that might target personal or business assets. While incorporation offers a degree of protection, comprehensive business liability coverage fortifies that protection.
Is Your Business Aligned with Compliance?
The team at Krugler Law can meticulously assess your operations for adherence to business regulations pertinent to your structure. Key compliance areas include:
- Remitting business taxes.
- Settling state and local dues.
- Accurate document filing.
- Maintaining rigorous business records.
Failing to adhere could expose business owners to personal liabilities, especially in scenarios like missing business tax filings.
The Foresight of Asset Protection
Asset protection isn’t an afterthought; it’s a foresight. Reacting post a claim against your business is too late. Business owners possess the tool of proactivity, which when wielded correctly, can safeguard assets efficiently.
Consult with Krugler Law About Your Business Today
The skilled team at Krugler Law is equipped to ready to address your questions about business structure, personal liability, and asset protection. Contact our office today to arrange a consultation. The more you plan, the lesser the risk of encountering lawsuits or other liability issues in the future.
