If you set up a limited liability company (LLC) or corporation for your existing business, what does the new entity own?
Too often, the answer is nothing.
How does that happen?
Your sole proprietorship or partnership never gets around to actually transferring the business assets to the new entity.
So, you’re really still running the business as before while pretending there’s a corporate liability shield in place to protect you as the owner.
Unfortunately, a hollow entity (without assets) isn’t going to protect you personally.
Naturally this means you’ll want to transfer the assets to the entity so that it can operate as intended for tax and liability purposes.
An experienced business lawyer can help you use the right contracts and assets transfer paperwork in a way that makes sense for your business model. Because if you’re going to set up a corporation or LLC, you might as well take advantage of it.
