6 Lessons Learned: Services

Understanding LLCs and Asset Protection Just about ten years ago, our economy went through one of the toughest periods since the depression of the early 20th century. From that experience, there were many businesses and individuals who suffered serious financial losses, even to the point where some have not been able to fully recover yet. There were a lot of businesses that ended up having to close down for good, as well as countless individuals and families who lost the homes and other vital assets. Since that time, the economy has been brought back to a positive state, and many of us who survived that experience have been able to learn a great deal about how to stay protected from any potential future economic harm. One of the more important lessons coming out of that rough period has been learning the great importance of having certain measures in place to protect their assets from being taken away. Surprisingly, until then, there were many people who were not very clear on the distinction between assets and liabilities. Even when someone did grasp the concept of homes and properties being assets, they still might not know that other things like cars are considered liabilities because their values are generally lost over time. With a clearer understanding of what assets truly are, people have then been able to gain even greater understanding of what they can do to both protect the assets they have and increase the numbers of assets they have. Among the different strategies that can be used to protect our assets, one process that has gained a lot popularity recently has been that of forming a limited liability company, or LLC. As our technologies have advanced, especially with the growth of the online markets, there have been growing numbers of people who have been starting their own businesses. Especially since the vast majority of these are small businesses, if not essentially owned and operated by a single person, they have learned that establishing their businesses as LLCs is one of the best ways to ensure protection of their personal assets, should anything go wrong. If they do not have the protection of the LLC, it is then possible for them to lose both their personal and their business assets if someone were to file and win a lawsuit against them.
Finding Similarities Between Options and Life
When you form your business as an LLC, you are afforded some of the same benefits and protections as corporations, but without as much bureaucracy and as many personal risks. Again, the important factor here is that, with a standard corporation, your personal assets could potentially be taken away if your corporation is sued and loses the case. An LLC, on the other hand, provides greater assurance that your personal and business assets are not counted together. In this, even if your business assets happen to be taken away, your personal assets should then still be protected.
Finding Parallels Between Options and Life
In many ways, this is actually a great time for anyone with enough discipline and will to take that leap and form a business. Learning from the past, people are less likely to repeat those financial mistakes by having the protection of their businesses as LLCs.

 

Author: s3m4ng4t