Connect with us

Business

Money On The Move: 4 Pointers For Protecting Your Business Assets

One of the greatest feelings in the world is knowing that your company is making a profit. It is a sign that your vision and leadership have gotten over with both your employees and your customers. However, it is important that you know how to protect your newfound wealth after it has been created.

Money On The Move: 4 Pointers For Protecting Your Business Assets

Sign a Prenuptial Agreement

If you are married, account for business assets in a prenuptial agreement. This ensures that your company is not considered marital property to be divided equally in a divorce. While you may give your spouse a portion of the company, it is less likely that it will need to be sold or closed.

Have a Succession Plan

Your employees, shareholders and customers will want to know that there is a stable future ahead for your company. Creating a succession plan can help create the desired stability. When you decide to retire or are unable to run the company, your employees know that you still have a job while your customers know that they will get the same great product or service as always. Your shareholders are likely to remain invested if they know that the business is capable of making money after you are gone.

Have Business Insurance

The unexpected can come at you, well, unexpectedly. An injury occurring on your company premises, a natural disaster, or even a theft could set present a significant expense. Having insurance on your business can help mitigate all of these risks. If a person gets hurt on company property, you may be liable for medical expenses for that individual. If you have liability insurance then you won’t have to pay for those expenses out of your pocket. It may also be a good idea to incorporate or form an LLC as a means of reducing liability in the event a judgement is entered against the company.

Property insurance can protect you from both natural disasters and theft. Many insurance companies will offer discounted rates if you take additional steps to protect your business, such as newer fire suppressions systems, regular emergency drills, etc. You may also want to consider hiring a security company of some sort, such as Security Services Northwest, Inc. or a similar firm in your area. This is especially important if your business transports physical money between locations on a regular basis.

How Is Your Money Treated for Tax Purposes?

The owners pay FICA and other taxes on that money like they would when working for any other employer. However, it may also be possible to give yourself a distribution of profits, which is treated as ordinary income for tax purposes. It may also be beneficial to keep your net worth tied up in company stock that can be used as collateral for loans. The loans can then act as income but are not treated as such by the IRS.

The ability to provide financially for themselves and their families is the main reason most go into business. Therefore, it should be your top priority to think of ways to protect your assets and ensure that your wealth can be preserved for generations to come.

Recent Posts

Elevating Your Writing Skills With These Simple Steps Elevating Your Writing Skills With These Simple Steps
Education4 days ago

Elevating Your Writing Skills With These Simple Steps

Writing skills are an essential part of communication and is not something that naturally comes from within. You have to...

When to Replace Your Car’s Tires and How to See The Warning Signs When to Replace Your Car’s Tires and How to See The Warning Signs
Autos4 days ago

When to Replace Your Car’s Tires and How to See The Warning Signs

Trying to get by with tires that may be long past their prime can lead to many problems. Worn tires...

4 Reasons Why Your Small Business Should Hire An SEO Company 4 Reasons Why Your Small Business Should Hire An SEO Company
Business7 days ago

4 Reasons Why Your Small Business Should Hire An SEO Company

Starting a small business is a very noble endeavor. It takes a lot of courage to step away from the...

What Effects Would Artificial Intelligence Have on the Future of Digital Marketing? What Effects Would Artificial Intelligence Have on the Future of Digital Marketing?
Tech2 weeks ago

What Effects Would Artificial Intelligence Have on the Future of Digital Marketing?

In the past few years, the wave of technology has drastically transformed digital marketing. From connecting with people to working...

Best Affiliate Marketing Software Of 2021 Best Affiliate Marketing Software Of 2021
Business2 weeks ago

Best Affiliate Marketing Software Of 2021

The best affiliate marketing software makes earning advertising revenue from your website quick and convenient. The next challenge is to...

When Is It Time For You to Declare Bankruptcy? When Is It Time For You to Declare Bankruptcy?
General3 weeks ago

When Is It Time For You to Declare Bankruptcy?

If you’ve reached a point where you can no longer pay your debts, you need to file for bankruptcy protection....

Paying More For The Same Flawed Healthcare Insurance Paying More For The Same Flawed Healthcare Insurance
Law3 weeks ago

Paying More For The Same Flawed Healthcare Insurance

Chances are, you are paying more for your health insurance this year than last year. You may well wonder, why...

Conveyor Belt Systems: 6 Ways to Improve Efficiency Conveyor Belt Systems: 6 Ways to Improve Efficiency
Business4 weeks ago

Conveyor Belt Systems: 6 Ways to Improve Efficiency

You might think that conveyor belt systems cannot be improved because of the simplicity of their design. After all, how...

3D Rendering Terminology: Guide For Architects to Communicate With CG Artists 3D Rendering Terminology: Guide For Architects to Communicate With CG Artists
Tech1 month ago

3D Rendering Terminology: Guide For Architects to Communicate With CG Artists

When chipping away at a building representation project, a modeler and a 3D delivering worker for hire need to see...

Learn and Become A Professional DevOps Engineer! Learn and Become A Professional DevOps Engineer!
Tech1 month ago

Learn and Become A Professional DevOps Engineer!

Have you been having a tough time deciding what you want to do when you grow up? Once your school...

Debunking The Common Myths About Cosmetic Surgery Debunking The Common Myths About Cosmetic Surgery
Health1 month ago

Debunking The Common Myths About Cosmetic Surgery

Just a few years back, plastic surgery was thought to be some kind of sorcery or something that existed in...

Home Improvement2 months ago

How to Choose The Right Type Of Flooring For Your New Home

Building a house from scratch can be a tedious and stressful process even though you know you are doing something...

3 Ways To Style An Oversized White Shirt This Summer 3 Ways To Style An Oversized White Shirt This Summer
Lifestyle2 months ago

3 Ways To Style An Oversized White Shirt This Summer

If there is one staple item you need ready for your summer wardrobe, it’s an oversized white shirt. They are...

5 Tips For Picking The Perfect Wedding Ring 5 Tips For Picking The Perfect Wedding Ring
Lifestyle2 months ago

5 Tips For Picking The Perfect Wedding Ring

Your big day is coming up for your wedding day and you set the standards too high with your engagement...

What's That Thing Called? All You Need to Know About Your Car's Lift Struts What's That Thing Called? All You Need to Know About Your Car's Lift Struts
Autos2 months ago

What’s That Thing Called? All You Need to Know About Your Car’s Lift Struts

Imagine you’re out for grocery shopping or a weekend outing with family, and you need to load your shopping or...

Categories

Archives

Trending