Business owners and real estate investors are just some of those at risk for losing their personal assets if they are sued by a customer or tenants. We talked some last time about owning your rental property or business in an entity. See my blog of January 26, 2012.
I spoke with a lady this week with multiple businesses and she did have each of them inside of separate business entities, but she still had liability in a lawsuit because she didn’t keep the entity formalities in place and had comingled her personal monies and records with those of one of her businesses. She also did not have several layers of protection between her customers/tenants and her personal assets.
Do you have your business or rental property in an entity? Did you establish and keep the entity formalities in place and ongoing? Did you consider multiple layers of different types of entities to protect your personal assets?
Consider taking action to protect your life’s work in the event of a lawsuit. There may not be time to recreate all that you lose.