Some business entity forms can protect your personal assets from liabilities of the business.

Did you know that some business forms protect you as owner from the liabilities of the business? Larry owned a rental property. He placed it in a business entity called a Limited Liability Company or LLC. Larry then hired a management company to take care of the rental. The tenant threw a wild party, during which a drunk guest fell down the stairs, sustaining injuries. The guest sued Larry, but he could not reach Larry’s personal assets because the they were protected by the Limited Liability Company. To maximize asset protection, own your business interests in entities like Limited Liability Companies or corporations that protect your personal assets from the liabilities of the business.