Regardless of the type of business you conduct, there is a
significant risk of being sued in our litigious society.
Lawsuits can range from claims of negligence to defective
products to disputes with employees. Incorporating is a
means of guarding against these potential threats.

Single Incorporation - Protecting Your Personal Assets

Incorporating your business is a method for creating a legal
wall between your personal assets and business. Any judgment
against your business will not impact your personal assets.
While your home, savings, stocks, etc., are protected, what
happens to your business? If a judgment is rendered against
your business, the business assets are as good as gone. This
doesn’t have to be the case.

Double Incorporation Strategy - Protect Your Business Assets

Many businesses can benefit from pursuing a double
incorporation strategy. The strategy is designed to address
the situation where a business has significant assets that
are exposed to litigation risk. If you incorporate your
business, it is all well and good that your personal assets
are not at risk. But what if your business has a number of
high value assets such as manufacturing machinery, office
equipment, popular domain name, custom software or other
items? Merely incorporating your business will not protect
these assets because they are owned by the business entity.
Since a successful lawsuit would result in a judgment
against the business entity, all assets of the business
could be seized as part of the judgment. In short, you lose
your machinery, office equipment, intellectual property or
any other