May 27, 2021
Business planning vs asset protection planning
What’s the difference between business planning and asset protection planning? If I have an LLC, do I have to do more asset protection planning?
Business planning is a form of asset protection. Business activities are risky (as in you face a higher chance of litigation being on that hustle grind).
Setting up entities, like an LLC, can help prevent the risk and liability of one business from spreading to another. It can prevent your business liability from affecting your personal liability and vice versa.
It doesn’t always work though. Often when we talk about "asset protection planning," we are talking about additional risk mitigation to put more protection around your personal assets.
Most business owners I know who get sued, also get sued personally. Having a stronger asset protection plan, beyond just their basic business planning, helps keep all of their personal assets in the family, rather than handing them over to the law firm that sued you.
Being successful in Ame…