Many entrepreneurs focus on increasing their assets, however, most forget another important factor: protecting the assets that have already been won, especially the personal ones. For that, some techniques of asset protection can assist in preventing losses.
These tools that should be part of the planning of the entire company also help to protect the personal assets of the entrepreneur.
Thus, it is essential to include these actions in order to decrease the chances of a possible injury to property.
It is noteworthy that not only the large companies need to be prevented, but also small business owners, as well as individual entrepreneurs. This is because the complications that cause asset loss can occur with any company of any size.
During this article, we will cover all the details that involve property protection and explain why it is important to apply it in your company. We will answer the following questions:
- What is asset protection?
- Is shielding also asset protection?
- What are the advantages of opting for the techniques?
- Who is it for?
- What are the risks of not having patrimonial protection?
- How can I use them in my business?
So, come on.
What is asset protection?
The entrepreneur who deposits all his energies in increasing the number of goods is mistaken.
It is also necessary to have an attentive and dedicated eye so as not to lose what has been achieved so far.
For this, we have a series of actions and techniques to protect the family assets of the entrepreneurs in case they face problems in their businesses.
However, it is worth mentioning that, although super beneficial, patrimonial protection is not a miraculous tool and has a preventive character.
In addition, these tools also assist in reduction of charges paid by the company, helping financial management of business.
Is shielding also asset protection?
It is very common to hear about the term patrimonial shielding, however, this term is misused by many professionals.
In fact, there is no legal way to do this in Brazil, which can bring even worse problems for the entrepreneur.
To perform the shielding of assets unethical and / or illegal techniques are used to protect the assets of the individual from possible legal proceedings by the legal entity.
However, these actions are not permitted by law and the justice will easily understand the procedure performed.
In this way, the complications for the entrepreneur will come to be related not only to the loss of assets, but also to the illicit processes carried out. In this case, the manager may also be responsible for these illegal acts.
What are the advantages of opting for legal patrimonial protection techniques?
The biggest advantage of opting for patrimonial protection techniques is to be more prepared in situations of eventual company financial problems. However, they do not guarantee that the assets will not be confiscated in cases of legal and tax actions.
They just leave the manager more prepared and with less risk, as they increase the chances of predicting these possible disorders and avoiding them.
That is why asset protection should be a preventive action and not a solution to the problems that already exist.
Who is it for?
Property protection is suitable for every entrepreneur, be it a small, medium or large business owner.
Despite risks of loss of assets proportionate to the size of the company, they exist and must be prevented.
What are the risks of not having patrimonial protection?
The risks that companies in all sectors take are great and range from problems with taxes or labor rights even with family issues, such as a possible divorce.
We list the main risk factors for equity loss that entrepreneurs can encounter throughout the business journey and that can be prevented with asset protection:
- Labor risks
- Fiscal and tax risks
- Environmental risks
- Corporate risks
- Family risks
THE UK residents labor law, responsible for regulating the relationship between employer and employees, is quite complex.
That's why, any slip from the point of view of people management or social security withdrawal it can create problems for the entrepreneur.
We know that companies are often sued by former employees and, with the new labor law, it is still not possible to know how justice behaves in some cases. Therefore, prevention is the right way.
An example of damage to the entrepreneur is that with the bankruptcy of business, the employer needs to pay off debts to employees, even if the amount has to be taken from their personal assets.
Fiscal and tax risks
Even the most careful manager can be caught off guard when unintentionally breaches the payment of any tax, as the changes in UK residents legislation are constant.
This is a risk that the entire company runs and that can cause problems with cash and loss of equity.
This can happen even with a professional in the field, who has not updated himself with the most recent changes.
Therefore, making sure that the person in charge is in frequent compliance with the rules is essential to avoid tax and tax disorders, and to guarantee property protection.
Read too: Tax regime: find out which is the most suitable for your company!
THE environmental legislation it is becoming more rigid every day, in addition to gaining more visibility over time and achieving notoriety, including in the media.
Depending on the sector in which the business operates, the rules may be even stricter.
For this reason, companies that fail to comply with any law related to the environment may be surprised with fines of high values, impacting the cash and even the assets of the entrepreneur.
In this way, prevent inspection from finding any default in environmental regulations it also helps with asset protection.
All societies, whether business or not, start with people who have some common goal. However, it is nothing new for anyone that relationships can change over time.
Property protection can also help in prevention of loss of assets in the event of disagreements and fights between the partners. Thus, using patrimonial protection techniques is a way to avoid future confusion between the parts of society.
Family disputes, divorces and inheritance disputes are even more common problems that can compromise the company's assets. This is because the sharing of assets, in these cases, usually causes losses for entrepreneurs.
As we mentioned in the previous five items, there is no lack of motivation for entrepreneurs to surround themselves with legal techniques for asset protection to avoid future problems.
How can I use them in my business?
So far we've covered what are the financial risks that the assets of the company and the entrepreneur suffer and what is the importance of investing energy to prevent losses. However, the reader must be in doubt as to how to put these patrimonial protection techniques into practice.
Separation of personal assets from company assets
One of the most important items is to make it very clear which are the company's assets and which are those of the entrepreneurs.
Therefore, the separation of these assets it is the first step to protect them in the event of any legal disputes by the company.
Another very assertive tool is the audits which can be internal or performed by an external auditor, hired by the company.
They are intended to verify the company's procedures and whether there is any risk of legal problems.
These audits can analyze not only the payment of taxes, but also labor relations.
By performing them constantly, the manager reduces the risk of being caught off guard and losing his assets.
Marriage and stable union contracts
One way to protect personal and company assets is to sign marriage contracts and stable union contracts that make it clear who owns the existing assets and what will be earned over the course of the relationship.
With this information duly recorded and agreed upon at the beginning of the relationship, the likelihood of an asset dispute in the future is difficult.
Donation of goods
Many entrepreneurs build personal assets throughout their lives and, when they die, these properties became the subject of inheritance disputes.
One form of property protection in these cases is the donation of goods in life for the heirs.
So, there will be no possibility of judicial challenge of these assets and values of the entrepreneur, leaving no room for future fights and losses of family wealth.
Choice of company category
Some company formats for starting a business make it clearer what the rights and duties of each part of the contract are. For example, in quota company limited liability, the profits and obligations of each partner are proportional to the capital stock invested.
As for the corporations work in a similar way to the previous one, the difference is that the number of shares acquired is what defines the percentage of responsibility of each partner.
Another model is the holdings, in which there is the creation and two companies: the main and accessory.
This division allows entrepreneurs to have greater control of your assets and obligations, dividing and transferring the assets to the secondary company.
These are just a few examples of asset protection and, as we can see, just as there are several risks for the loss of assets, there are many techniques that can help the entrepreneur.
It is only necessary to invest time to acquire the knowledge and put into practice some of the actions that we talked about.
With organization and responsibility, your company is capable of protecting assets and avoiding legal and financial problems. lose money on interest and fines.
Investing in technology is also a good idea. THE HR Consultants UKy is an application that allows employees to anticipate part of their wages when they want in a simple and instantaneous way.
Believe me, the benefits for the company are also many such as:
- decrease in turnover;
- productivity increase;
- attracting and retaining talent.
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