Oswego Business Asset Protection & Estate Planning 

 Posted on January 26, 2023 in Asset Protection & Wealth Preservation

Asset protection in Oswego is only possible if business owners engage the right Oswego estate planning attorney to protect their estate and assets.

A Case for Asset Protection and Estate Planning

Every human being tend to have an estate. Your estate includes everything you own: be it your businesses, investments, your home or other form of real estate, furniture, a car, personal belongings, life insurance, savings, and checking accounts; just name it. We all have an estate, no matter how small or large, old or new. And one thing is certain—you can't take it with you when death calls.

That is where asset protection and estate planning come in.

What is Asset Protection and Estate planning?

Asset protection and estate planning are proactive steps people take to protect their estate and control how the possessions constituting their estate would be shared among their loved ones (or designated organizations) after their death or when they become incapacitated, as the case might be.

Why Business Owners in Oswego Need Asset Protection and Estate planning

Asset protection is crucial for small and medium-sized business owners because of the inherent risks and pitfalls that characterize everyday business operations. For instance, almost all businesses face the risk of lawsuits and claims with regards to:

• Mortgage and debt obligations to vendors and third parties,

• Claims for damages or injury caused by your business employees,

• Professional or product liability,

• Consumer protection issues, etc., constitute some of the risks that often confront businesses,

• Partnership and Business disputes including members of business ventures that the owners are a part of

• Professional negligence and malpractice concerns

If not properly handled, such risks could lead to significant losses of both personal and business assets. Consulting an Oswego business asset protection and estate planning attorney will help you define these risks and come up with a robust plan that will assist you in avoiding or minimizing them, so you can operate your business successfully.

The Objective of an Asset Protection Plan and the Mistake of Many Business Owners

The objective of any thoroughly drafted asset protection plan is to prevent or considerably decrease risk by shielding your personal and corporate assets from creditors' claims. Sadly, many small and medium-size business owners are ignorant of the inherent dangers that could hurt their businesses or the ways they can protect themselves. A good asset-protection strategy uses legal tactics that are implemented ahead of time and can discourage potential claimants or assist in preventing the seizure or transfer of your assets following a verdict. Don’t delay the time you need to set up your business asset protection plan. The faster you set it up, the longer and stronger it will be.

Types of Claims on Assets

There are two main types of claims that can be made on assets: Internal Claims and External Claims.

Internal asset claims

Internal claims are made by creditors whose right to recourse is restricted to the assets of a certain entity, like a company. For instance, supposing you have a company with its own real estate and slippery floors, and somebody falls and gets injured on the company's property; the injured party can only bring a claim against the company's asset (the real estate). This assumes you were not the one who caused the injury.

External asset claims

Unlike internal claims, external claims can extend beyond the business's assets to cover your personal assets. For example, if the companies you own also have a truck that you carelessly drove into a group of pedestrians, the injured party can sue both the business and yourself, and get remedy from the business assets and your personal assets as well.

Being aware of the different types of claims that may be filed against you or your business will make it easier for you to prepare ahead and safeguard your assets from seizure and wage garnishment. Also, a business asset protection and estate planning attorney in Oswego can help you understand what assets are more vulnerable to claims.

Types of Asset Protection Planning Strategies

Asset protection plans are as different as the people who want them. There is no one-size-fits-all approach. The strategies that your estate planning attorney in Oswego will recommend for you will depend on your situation, that is, the kinds of assets you possess and the creditors who are most likely to bring claims against them. Some of the typical legal strategies employed for business asset protection include:

Establishing a company

Incorporation is the most widely used method of shielding business assets from liabilities and losses. Once your business attains the status of a Limited Liability Company (LLC), your business assets become separate from your personal assets, and third-parties can no longer bring claims against your personal property except in rare circumstances. Your Oswego business asset protection attorney will help you navigate the benefits of forming a company, which include:

• Limited liabilities enable you to perform business without worrying about damages and losses.

• Enjoy immense taxation benefits, such as pass-through taxation advantages.

• Flexible and customizable management.

• Gives your business professional credibility.

• LLCs are inexpensive to form and renew.

• Membership options are flexible.

Other company types that offer valuable business asset protection include:

S–Corporation Business

An S-Corporation is an enterprise structure that offers many levels of business asset protection. It operates under stated rules and certain bylaws outlined under Chapter One of the IRS Code. Some of the benefits that come with using the S-Corp strategy are:

• It simplifies the process of dispersing salaries and other types of compensation.

• Shareholders can receive dividends.

• Your company enjoys pass-through taxation benefits and other advantages.

• It's easier to transfer business ownership.

Limited Liability Partnerships [LLPs]

LLPs are a common way for two, three or more business partners who have invested in the same goal to protect their own interests. An LLP might be the right choice for businesses with multiple entities.

The following are some of the benefits of an LLP:

• Freedom to choose a name of your choice and function as a business entity.

• Liability protection from potential lawsuits and other possible issues.

• Highly flexible and include different options.

• Managers can name and remove members easily.

• You receive and enjoy the advantages of corporate ownership.

With a business asset protection attorney in Oswego guiding you all the way, you can easily get an LLP in Oswego.

Family Limited Partnerships (FLPs)

FLPs are a great option for business owners seeking to join forces with their family to protect \ their assets together as a group. It is the perfect legal way for a family to pass on wealth to another generation.

Some of the benefits that come with this designation include:

• Ability to conduct business operations as one family to care for one another.

• Families can minimize the accounting and legal costs involved with combining business interests.

• FLP brings favorable taxation.

• Family members involved in an FLP are not liable for damages and debts.

• Participation in the decision-making and management processes is easier.

Take into account your family’s collective goals and define how an FLP can be of help. If you are not sure, an Oswego asset protection attorney can assist you.

Create Different Forms of Trusts to Protect Assets

A trust is an arrangement between the person who establishes the trust (the trustor, settler, or grantor) and the trustee, who is in charge of the trust's assets. A grantor trust is a legal arrangement whereby one party (the grantor) transfers property to another (the trustee), who then holds and manages the property for the interest of a third party (the beneficiary). Trusts established during the grantor's lifetime are known as inter-vivos trusts or living trusts, while trusts established at the grantor's death are known as testamentary trusts, either by a living trust or will.

Although trusts have been employed in a wide variety of asset-protection schemes, they can be broadly classified into two categories: revocable and irrevocable. The trustor retains the legal authority to change the trust's terms by making amendments or to terminate the trust entirely by revoking it. With an irrevocable trust, the grantor loses all such control. The irrevocable trust's strength as a vehicle for protecting assets stems from this very lack of discretion. Assets that you no longer possess or control are immune to legal action.

A trust asset attorney in Oswego can help you assess how well your business assets can fit under trust protection.

Reduce Your Business Liabilities by Contacting Experienced Asset Protection Attorneys in Oswego

Creating and putting a solid plan into action to protect your assets involves all parts and stages of your business. Whether your situation requires one or multiple asset protection strategies, you need an experienced Oswego estate planning attorney that will help you scale the necessary legal instruments and processes needed to accomplish the plan. At Gateville Law Firm, our Oswego estate planning and asset protection attorneys can develop a reliable asset protection plan for you. Our team consists of renowned real estate attorneys with specialized qualifications and backgrounds in family law, business law, estate planning, tax management, and asset protection. Gateville Law Firm serves the irreplaceable residents of Oswego and the nearby surroundings such as Kendall, Yorkville, Plano, Plainfield, and more. We don’t just walk you through the process, we make sure that all your instructions are followed to the letter so you and your family can have the peace of mind you deserve.

Contact us today at 630-780-1034 or leave us a message by filling out our Contact Form. Someone is always waiting to take your calls or receive your messages. We look forward to giving you instant feedback and hope to have an initial consultation with you at your earliest convenience.