How To Protect Your Business

by Bruce Givner on March 12, 2011

What steps should business owners take so that if something goes wrong, they will not lose all or most of the assets that they have worked so long to accumulate?

Easy - Contact Givner & Kaye and establish your asset protection plan today!

Los Angeles asset protection lawyer Bruce Givner, founding partner of the Los Angeles estate planning and tax law firm Givner & Kaye, discusses asset protection planning and protecting your business. To learn more contact:

The Law Offices of Givner & Kaye, APC. (310) 207-8008

  • Recapitalization. The parents should exchange their 100 shares of common voting stock for 1 share of voting stock and 99 shares of non-voting stock.  There is no one correct next move.  There are lots of attractive alternatives.  For example, the parents might gift the 1 voting share to an irrevocable trust for the children and enter into a buy-sell agreement that strongly favors the children’s trust.
  • Private Retirement Trust.  Under California law a PRT can be used to protect the receivables and hard assets of the closely held business. For non-California businesses a similar result can be achieved using a children’s trust or an FLP.
  •  Family Limited Partnership (or FLLC). The investment real estate and investment liquid assets should be transferred to an FLP or FLLC, with the parents (or their living trust) being only limited partners (or non-managing members).
  • Defined Benefit Pension Plan.  A DBPP allows the largest deductions for the closely held business.  Any tax qualified employee retirement plan (think O.J. Simpson) is protected from all creditors (except orders for child and spousal support and the U.S. government) as long as one rank and file employee is covered.
  • Captive Insurance Company. This asset protection strategy is used to insure the business, its subsidiaries and owners from unusual risks.

Find out what Givner & Kaye can do for you. Contact us today. (310) 207-8008

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