If Your Clients Are Business Owners, How Do You Protect Yourself?

If everything we’ve told you is true (and it is), how do you keep your own business safe? To understand the mindset, consider these three simple, yet costly myths:

Myth #1: Sole proprietorship’s are simple — the easiest business structure to operate. As you know by now, the worst choice is to operate as a sole proprietorship. Unfortunately, simplicity and asset protection are “inversely related,” meaning the more protection you have, the more complex your situation may become. I know that does not resonate with many of you. But your goal is to accumulate profit and assets, and the more assets you accumulate, the more you must protect them.

The good news is that you need not go it alone. The key is to strategize with a knowledgeable, experienced advisor to come up with your optimal protection plan. After all, you need to stay focused on adding value and profit to your new venture, not to become an expert on business start-up methods. You should only have to do that once — but do it right.

Myth #2: Most start-up business owners cover only one component of the big picture by getting tax advice from their professionals. But there’s more. Could you benefit by having a separate legal entity to help save on taxes? Which entity is best for your venture? As you know now, there are many elements to consider.

Myth #3: I’m a good person, and I have insurance. Why would anyone sue me? That’s admirable, but that’s not how the game is played. Desperate people don’t care if you’re a “good person.” If you have money — or the perception of money — you’re a potential target!

Don’t bury your head in the sand. Now that you’re aware of the pitfalls, take action yourself — and arm your clients as well — with the tools and information to be successful. After all, it’s in YOUR best interest to make sure your clients prosper! How do you make that happen? Call FAST BUSINESS CREDIT and ask for more information on how we can help your clients and your business!

About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to http://www.FastBusinessCredit.com or call FBC at 1-888-313-6333 or 702-977-5246.