Right now, the coronavirus (COVID-19) is presenting many new challenges for small businesses as they quickly develop work from home plans and employees adapt to new working conditions.
But while coronavirus is the current obstacle, businesses will most likely encounter various economic events that challenge growth and prosperity.
Understanding how to protect your business and wealth is the first step to ensuring longevity in any market, under any conditions.
In this article, we’ll discuss some powerful ways you can protect your business and help it thrive in uncertain times.
Form an LLC
When you form an LLC, you separate your business assets from your personal assets. This prevents your savings, home, retirement and other personal belongings from being targeted by lawsuits. It also prevents you from being personally liable for the debts of the company.
But, while legally separating businesses from the owner, an LLC can elect treatment as a partnership for tax purposes. This allows for tremendous tax savings that can amount to thousands of dollars a year.
Even better, LLC’s are easy to run and manage with no limitations on how many members can be involved or where they’re located. And with an LLC, there’s no law requiring resolutions, amendments, meeting minutes or annual board meeting.
An LLC is peace of mind, incorporated—allowing your business to weather any storm and come out standing.
Get a Revocable Living Trust (RLT)
RLT’s are NOT just for the wealthy and they’re NOT just for the elderly. They’re for everyone and are a smart way to provide long-term financial planning for your family.
RLTs let you avoid the hassles of probate
Probate is a legal process for settling claims against the decedent (the person who has passed) and for distributing the decedent’s assets. This is the #1 reason people get an RLT—to avoid probate. It’s an expensive, slow-moving process that can last anywhere from a few months to years.
RLTs solve the problem of decedents who have many assets in real property
Probate legal fees, costs and federal estate taxes must be paid in cash. Decedent’s who have their assets in real property tend to have little cash. This situation may force the Executor of the probate estate to sell the property quickly, often resulting in property going at half the price it’s worth.
Solves the problem of insurance
Most insurance is sold to provide for the surviving spouse or for the children of the parents if both die. However, an examination of the costs of probate may result in a large portion, if not all, of the insurance being used to pay such probate expenses and taxes.
Apply for the Small Business Association’s (SBA) Economic Injury Disaster Loan
In the wake of COVID-19, the President took action to protect small businesses with the Coronavirus Preparedness and Response Supplemental Appropriations Act. Under this Act, the SBA issued the Economic Injury Disaster Loan:
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. […] These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
If you own a small business that’s being impacted by COVID-19 and want to learn more about applying for this loan, see the contact information below.
SBA’s disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail firstname.lastname@example.org
Living in unprecedented times doesn’t mean you have to operate with uncertainty. There is a way to have peace of mind—but it’s going to require you taking action to protect yourself, your business and your loved ones.
Incorporating is the most powerful thing you can do to protect yourself in business. At IncAuthority.com, our LLC and corporation setup service is 100% free. Always. So, don’t wait another minute! Form your business today and enjoy lawsuit protection, tax advantages and much more! Start now for free.