How an LLC Can Protect Your Arizona Business and Help It Grow
The Right Company Structure Can Help Secure Your Business Assets Against Lawsuits
The way you structure your business can have a profound impact on its success or failure. Choose the wrong business structure, and you may lose a lot of your profits to certain kinds of taxes. Choose the wrong business structure, and you may lose everything you own after someone sues you. Choose the wrong business structure, and someone might take everything that you have built while you stand by helplessly.
There are a lot of options for structuring your business, and you need to consult with an experienced Chandler business attorney to understand them all and to know how each could benefit or harm your business in the long run. Many people find that an LLC, or limited liability company, is a good option that provides great protection for the business and allows it to grow. Here’s what you need to know:
A limited liability company takes its name from what it does: It protects the owners from liability in the business. If a customer, a business partner, or another party brings a lawsuit against the business, the owner will not be also held liable merely as a result of being an owner. As the owner, you would not have to liquidate your home or other assets to pay the judgment in a lawsuit. You would be protected.
However, that doesn’t mean that the person or organization could not go after your business assets. Any profits, cash on hand, or property could all be seized to satisfy any judgment found against the business.
There are some instances in which you could still be held personally liable if your business is sued. For example, if you are found to have engaged in intentional fraud, you can be held personally liable and your personal assets could be seized. In extreme cases you could even be ordered to serve time in jail or be subject to other penalties.
When you set up your LLC, your business attorney in Gilbert can help you understand what situations you might face and what liability the company or you would face. Your attorney can also help you put provisions in place to protect yourself and your business. You need to talk through the options thoroughly to make the right choices to protect yourself and your assets.
Protecting Your Business
One way that an LLC structure protects your business is by protecting you. If someone sues you, chances are good that your insurance will cover any damages that are awarded. However, even if the claim lies outside your insurance coverage, there will be only so many assets that can be liquidated to cover the reward. Even if you have to liquidate some business assets, you still have your own credit and assets to draw on to bolster the company, either to help it weather the storm or to rebuild it.
Your Chandler business attorney can help you understand other measures to put in place to protect your company against liability. That might mean drawing up more secure business contracts, getting different insurance policies, or investing in a way that ensures you have the funds on hand to settle any claims that are brought against you. You can also improve safety procedures, better maintain your property, and better train your employees, among other things.
Always work with a business attorney in Chandler and with the right business consultants to put the right measures in place to protect your business. Give your business the opportunity to succeed or fail based on its merit. Don’t let it be brought down by a lawsuit.
The attorneys at Denton Peterson Dunn are ready to help you. Our top-notch legal team can help you draw up the right contracts to protect your interests. They can also represent you in litigation and employment disputes, helping you to avoid liability. If you are just starting out, they can draw up the LLC or corporation paperwork for you to ensure that your business and your personal assets are properly protected. We have been helping businesses just like yours for more than 20 years, and we can help you put the right measures in place to protect your business and ensure that it has the chance to grow. Contact Denton Peterson Dunn today to consult with a business attorney and determine the right options for your business.