How many companies should I have?

How many companies should I have?



so how many business entities should you have how should you kind of start thinking about structuring them to protect your assets I'm Michael Redd and if you have comments about this topic please leave them below if you'd like to plan with me then click on the link in the description in schedule meeting asset protection is a very important topic and the topic that comes up a lot for asset protection is how many different business entities should I have how should i structure them what I should I really do to protect me well beyond that basic stuff I'm just setting up your entity choosing the right one and keep up with your corporate formalities there really is a lot of strategy that goes into how should you structure these kinds of things and if you want some more in-depth discussion about it I encourage you to I reach out and get a copy of my book building a wall around your wealth I wrote this book with asset protection in mind and it's set in the state of Minnesota Minnesota has its law set up so that really a lot of things are at risk so you can apply these pretty much when you where you're at and you really get you thinking about those things and you can get a free copy of it by clicking on the link in the description now you should really think about this as segregating risks right you should have one business entity usually per asset class and usually per enterprise when I say per asset class that means if I've got that operating business then I should probably have it separate from what owns the real estate the real estate has different kinds of risks coming from that asset class and it's also really big target as I get equity in that building then it's going to be something that is really easy for anyone who wants to sue you to try to come and get there they know you can't move that away you can't tuck that into tuck that into a bank account you can't put that in trusts overseas or another state that's going to sit there so you really want that separate so that something happens in your operating business that in a get sued they won't be able to come and get that real estate you might want to also think about that for large equipment purchases you might want to put that into a separate entity and lease it back because it's the operating entity that's doing the business there's probably going to be the one that bears the risk and when it's sued you really just want the cash and maybe some furniture and things to really be what's at risk the other thing should be other entities so that they aren't able to be taken and they should be running that way and there are tax benefits of these lease backs and things and there are tax benefits to renting the operating company renting the real estate from the business further with that look at your different enterprise levels okay a lot of you will start with that one entity and then decide to do a little bit of a side hustle or decide to do consulting or if you main if you manufacture something you may start to resell it or maybe even try to install in things yourself when you start separating those enterprises and they're really not the same they become tangential they need to be in separate entities don't just set up Smith enterprises and put everything under the Sun and the Smith Enterprises you need to have a separate entity for each one to kind of separate those risks out we don't want them to contaminate each other that's one of the reasons why one bad business deal can really take the entire wealth structure down you can lose everything in it because you haven't segregated them when you put each deal type each asset class each thing in its own entity and treat them as separate persons that only one domino goes down and if you really think about it if one thing went down you wouldn't lose everything and you would be able to maintain the other things a little bit easier could your overall business structure and lifestyle survive if one thing got hit usually the answer is yes if it's not then that's usually a growing pain kind of thing but you still wouldn't lose everything you'd have something to start over with even if the other one kind of failed so think about that and if you have more than one enterprise make sure there's no entity if you have a lot of different asset classes together just separate them out in different entities so you can be protected a little bit if you have any other questions about it like I said you can get a free copy of my book from the link in the description and that will give you a very good overview and a very good kind of rule of thumb to live by and how to kind of set those things up

Leave a Reply

Your email address will not be published. Required fields are marked *