Safeguarding Assets

Obstacle

Many times business risks exist and the business owner might not be aware of it. The business owner of ten real estate properties owned the property in his personal name. If an accident would have occurred in one of the properties, the business owner would have been personally liable and personal assets could have been at risk in a lawsuit.

Approach & Solution

Our firm approach is to utilize strategic partners who have knowledge and experience in specific areas beyond our firm 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.