Asset Protection Corporation

An asset protection corporation does exactly what the name implies. This is a business that protects the assets of clients or customers. Assets include both tangible and intangible items of value. For example, tangible assets include a person's possessions or a company's furniture and equipment. Intangible assets are items that have value, but that aren't physical objects. An author, for instance, owns the copyright to the novels she has written. Depending on the author's popularity, the copyright could be very valuable. A business may own patents and/or trademarks. Termed intellectual property, these are types of intangible assets. Additionally, when a business is sold, the purchase price often includes an amount known as goodwill. This is another type of intangible asset that can be assigned a value and basically refers to the business's customer base. Of course, a business itself is a thing of value to its owners. In protecting both tangible and intangible value, an asset protection corporation may offer security systems to the client's property, estate and tax planning assistance for the client's wealth, or legal strategies regarding the client's business structure, tax procedures, and/or possible professional liability.

Security companies often offer their services to both residential and business customers. For a person's home, a company might provide motion detectors, alarms that are activated by the opening of a door or window, or a combination of these types of strategies. The homeowner can turn the system on and off by entering a code into a keypad. The keypad often comes with a one-touch feature that summons either law enforcement or emergency medical assistance by pushing the appropriate button. As part of the security system provided by an asset protection corporation, other buttons may be placed strategically throughout the home to summon law enforcement when the alarm system itself is turned off. For example, an emergency button may be placed in the kitchen. If someone breaks in while the family is home, hopefully a family member could access this button and trigger the alarm. Many small businesses often use similar types of security systems to protect their employees. Large corporations and government agencies often hire an asset protection firm to evaluate, design, and implement a customized security system. This may include hiring guards, utilizing metal detectors, or the use of employee badges. The firm may also provide video monitoring and a sprinkler system in case of fire.

Another type of asset protection corporation specializes in estate and tax planning. Even individuals with a small net worth may want to seek legal advice when preparing a will to be sure that the instrument is properly written, witnessed, and executed. Those with a large net worth most certainly need legal assistance to ensure that the heirs, not the state, are the beneficiaries of the estate upon the person's death. A reputable and knowledgeable firm can help individuals plan the best way to protect the assets they have worked so hard to accumulate. A plan can be created that benefits the individual throughout the rest of his life, provides financial security for a surviving spouse, and reduces tax liabilities. Of course, paying taxes is a certainty of life. The Pharisees once sent their disciples to Jesus and asked about the lawfulness of paying taxes to Caesar. Jesus knew the wicked motive behind the seemingly innocent question and asked them whose image was on the tribute money. As recorded by tax collector turned apostle, "They say unto him, Caesar's. Then saith he unto them, Render therefore unto Caesar the things which are Caesar's; and unto God the things that are God's" (Matthew 22:21). Taxes need to be paid but no more than necessary. An asset protection corporation can advise legitimate legal strategies for protecting as much of one's net worth as possible.

Finally, an entrepreneur may need legal assistance in protecting her business. Structuring a company in a certain way may reduce taxes on one's profits and protect the owner's personal assets in case of litigation. Entrepreneurs often start out as sole proprietorships. There is little cost to starting a company with this type of structure which makes it a popular choice. However, the individual's personal assets are at risk if the sole proprietorship is sued. By forming the business as an LLC (limited liability company) or corporation, the owner(s) are not personally responsible for the business's debts. The LLC or corporation is, according to the law, a separate entity. An asset protection corporation can help an entrepreneur or management team to structure the company in such a way to reduce taxes and lessen liability. However, owners and managers need to be careful that the asset protection firm is providing legitimate and reputable options. Some of these firms advise strategies that may lead to audits by the Internal Revenue Service. Others are outrageous scams. An entrepreneur or management team should only hire an asset protection corporation that has sterling credentials and a strong reputation in the industry.

Additionally, professionals such as those in the medical profession may seek specialized advice for protecting assets in the case of medical malpractice suits. Other professionals, such as attorneys and accountants, may also benefit from specialized strategies in the event an unhappy client files a lawsuit. Such individuals often have practices to protect in addition to personal assets. A reputable firm should provide assistance in how to structure both the business and personal aspects of the professional's assets to provide as much financial protection as possible. Again, the professional will want to investigate an asset protection corporation before accepting its services to ensure that the firm specializes in solutions and not in scams.