Many times business risks exist and the business owner might not be aware of it. A business owner had ten real estate properties owned under his personal name. If an accident would have occurred in one of the properties, the business owner would have been personally liable. As a result, assets could have been at risk in a lawsuit.
Approach & Solution
Our firm's approach is to utilize strategic partners who have knowledge and experience in specific areas beyond our firm's expertise. An insurance evaluation by our strategic partner revealed that while the insurance premiums paid by the business owner were competitive there was liability exposure. This was never discovered by the business owner’s insurance carrier. The solution to the potential liability was to transfer the ten real estate properties to newly created limited liability companies. By transferring ownership to the LLC’s the risk of potential liability was mitigated.