The Business Wealth Preservation Group, LLC, Taxes - Consultants & Representatives, Fox Lake, IL

Asset Protection Myths

I don't own enough assets to be concerned about asset protection.

Wealth is relative – it's about protecting what you have – home, equity, savings, cars, boats, business assets, etc. Is your business viable without assets? If you cannot afford to lose most of your business and personal assets – your business is not too small for asset protection!

I have insurance – that's my asset protection.

Insurance is a necessary part of life but is the quintessential putting all your eggs in one basket. Litigation awards are outrageous and growing. If the claim exceeds coverage, your assets are at risk! If the activity is outside of your coverage – employee operating a company vehicle under the influence of drugs or alcohol – you may have no coverage at all. Read the fine print from your for profit insurance company. Today's litigation results and their devastating impact on businesses and individuals speaks for itself.

Why do I need to be concerned with asset protection – my accountant told me my assets are almost fully depreciated and carry little book value?

What? We are always amazed by this comment. Book value means nothing in this instance. Assets will be seized and sold for fire sale or scrap value. If the business loses its assets – how do you operate the business? Is still viable? Can you afford to replace all of your assets at one time – after depleting your cash defending the lawsuit?