In the face of the rise in interest rates on home and business loans and the ever-increasing cost of living, it has become more crucial than ever to prioritise asset protection.
Now could be the ideal moment to optimise your affairs for your benefit when considering the acquisition of new assets or restructuring your current assets to alleviate any potential risks. Where possible, it is essential to keep your personal and business affairs separate and safeguarded from any potential threats.
What are some Common Questions related to Asset Protection?
At Argon Law, we are here to assist you with any and all questions related to asset protection. Our expertise in asset protection covers a variety of areas.
How Can I Maximise Asset Protection through a Company?
We can explain the reasons, methodologies and strategies to best protect your assets via the use of an existing company or creation of a new one. There are a variety of legal structures one can use to better protect your assets.
What Should I Know Before Buying a Property, Business, or Other Asset?
When considering the legal structure for your business or asset, it is crucial to examine factors such as taxation, liability to creditors, and profit distribution. The four most common structures used are sole proprietorship, partnership, company, and trust.
There are both pros and cons to any legal structure. We can help you delve into the advantages and disadvantages of establishing a trust and help you make informed decisions about safeguarding your assets.
At Argon Law, we can help navigate the process when it comes to acquiring new assets and help you to avoid being sued when it comes to purchasing a new business or property.
What are some Risks which come with Owning Assets?
Owning assets comes with inherent risks, including the possibility of suppliers or other creditors suing you for unpaid debts, potential lawsuits against anyone supplying products or services for damages caused by faulty items or negligent advice, and the risk of facing claims for personal injury occurring on your property.
There are also risks associated with providing personal guarantees for the liabilities of your business. These can lead to potential claims against you and these, in turn, may lead to the loss of all your assets, not just the business in question. Assets in your name may be at risk if you are only a shareholder or director of a company.
How Can I Minimise the Risks Associated with Owning Assets?
To minimise risk, setting up a company to act as the owner when purchasing a business or asset is a common strategy. It is essential to establish the company from the outset, as delaying this process may have negative tax consequences. Trusts can also serve as useful tools for asset protection.
At Argon Law, our experienced lawyers can guide you in selecting the structure that best suits your business needs and interests. We consider factors such as your tax position, risk tolerance, and available capital to provide tailored advice.
What happens if any of these risks are realised?
If any of these risks materialise, it can put all your assets at stake, not just the specific business or property involved. As an individual owner, you could lose everything you possess.
However, if you own shares in a company and serve as a shareholder only, your personal assets held in your name or in another company are generally not at risk. As a director, it is advisable to seek legal advice regarding your personal exposure.
We can also offer legal advice regarding personal exposure if a claim is made against businesses you are associated with.
Argon Law are here to help.
Visit our Asset Protection page to find out more. If you have any queries or require legal assistance, please don't hesitate to contact us at 07 5443 9988 or [email protected].
Argon Law, located in Maroochydore on the Sunshine Coast, is a firm specialising in commercial law, business law, and property law. We are dedicated to supporting you in every possible way.
