Is Your Business Protected from Creditors and Lawsuits?
Running a business comes with inherent risks—some expected, others entirely unforeseen. From contract disputes to employee claims, accidents, or unexpected creditor issues, one lawsuit can threaten everything you’ve worked to build. The good news? With the right structure and protections in place, you can shield your personal assets and your business’s long-term stability.
1. The Right Structure Matters
Many owners start their businesses as sole proprietorships or partnerships without realizing how much personal liability they’re taking on. Properly formed LLCs and corporations can create a legal shield between your personal assets and the business—but only if they’re set up and maintained correctly. Annual filings, operating agreements, and governance formalities aren’t just paperwork—they’re essential protection.
2. Asset Segregation is Key
One of the smartest moves business owners can make is to separate valuable assets (like real estate, equipment, or intellectual property) from operating entities. This way, if one part of your business faces a lawsuit, the rest of your assets remain insulated.
3. Insurance Is Your First Line of Defense
No structure is complete without proper insurance coverage. Liability, errors and omissions, and umbrella policies are often the first layer of protection against unexpected claims. A periodic review with a trusted advisor ensures coverage keeps pace with your business growth.
4. Regular Check-Ups Catch Weak Spots
Even businesses that started out well-protected can develop gaps over time. Growth, new ventures, partnerships, or changes in law can leave you exposed without realizing it. A Business Well Check can reveal these vulnerabilities and help you fix them before problems arise.
Protect What You’ve Built
The best time to strengthen your protections is before an issue arises.
Schedule your Business Well Check today to uncover risks, strengthen your safeguards, and ensure your business—and personal assets—are shielded for the road ahead.
If you Need Help, It Would Be Our Pleasure...
Kevin Snyder is a husband, father, and an Orange County estate planning attorney and elder law attorney at Snyder Law, PC in Irvine, California. He's all about family and passionate about estate planning, elder law, and veterans. He founded Snyder Law to help people be prepared and have the peace of mind they are protecting their families and aging parents for when life happens.