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Importance of Asset Protection for the Business Owners

As a business owner, you probably realize that besides turning a profit, which is not easy itself, your business and personal assets are susceptible debts and mortgage obligations to third parties and vendors, claims for damages caused by your employees, product or professional liability, and consumer-protection issues. It is important to insulate your business and personal assets from the claims of creditors. Specifically, it is done by employing legal strategies, put in place before a lawsuit or claim arises, that can deter a potential claimant or help prevent the seizure of your assets after a judgment.  The process to plan and to implement these strategies is called asset protection. 

Common strategies in asset protection. 

Strategies used in asset-protection planning include separate legal structures or arrangements, such as corporations, partnerships, and trusts. The structures that will work best for you depend, in large part, on the kinds of assets you own and the types of creditors most likely to pursue claims against you. Some of the more common legal vehicles used for asset protection include corporations, partnerships, and trusts.

One prominent exception to the limited liability of corporate principals relates to providers of personal services. Personal service liability includes work done for or on behalf of another by doctors, attorneys, accountants, and financial professionals.

In addition, liability protection offered by a corporation will be available only if the corporation carries itself as a separate and distinct entity, apart from the individual shareholders or officers. If a corporation has no significant assets, a creditor can attempt to prove that the corporation is not acting as a separate and distinct business entity but is the alter ego of its officers or shareholders. This strategy is called piercing the corporate veil, and if successfully proven, it allows the creditor to reach beyond the corporation to the assets of its shareholders.

Moreover, a revocable trust in which the grantor reserves the right to alter the trust by amendment, or to dissolve a part or all of the trust by revoking it is not a powerful asset-protection tool like an irrevocable trust. The latter, for lacking of control, discourages creditors from pursuing them. 

Last by not the least, please note, mere association with some for the purpose to make profit makes you a partner and your personal property is susceptible to all claims related to the activities you carry out for the purpose of the partnership. 

Consider the services of an attorney in developing an asset-protection plan that works best for you.

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Why is registering trademark a good idea?

Trademark lawyers at LLA are dedicated to help small business owners to defend trademark right . Small business owners who  aim to dominate local market and do not  intend to infringe anyone’s property right needs to make sure he  picks a name that is not used by anyone in his area. That’s be safe enough, right?

No. As many purchasing decisions are influenced by brands because they mean quality, service and other reputation. Therefore, you need to make sure your won’t change your brands whenever anyone send you a cease and desist letter requesting you to stop using it because you have violated their rights. The following are five reasons why you need to register your trademark pronto.

1.Trademarks conveys whole messages about you. Think about Apple, Amazon, Google, Tesla? What do they mean to you? certainly not fruit, a place or a scientist, right. They mean quality, artful, efficient, powerful or environment friendly, right? It is same for you. it tells the world about your belief, your style and the needs you fulfill, etc. Trademark to your business is like your own name to you. Can you imagine the effects you will suffer if you have to change your name?

For the same reason, you cannot afford to change your trademark, your brand every time someone with registration to ask you to, nor to pay for litigation or punitive fine that will destroy you.

2. Trademark Infringement Complain will cost you a fortune.
There are obvious aspects to a trademark infringement case that can damage a company – the loss of a brand, accompanying loss of sales, delays in getting your product back out into the marketplace and the oftentimes significant cost of a re-brand. However, there are other satellite issues which can arise and they can take the price of getting it wrong to dizzy new heights. Factors such as negative publicity in a social media world and legal fees can carry a heavy price tag. Now you do the math.

3. Trademarks make it easy for customers to find you. The marketplace is crowded and it’s hard to distinguish your business from your competitors. Trademarks/brands are an efficient commercial communication tool to capture customer attention and make your business, products and services stand out.

4. Trademarks allow businesses to effectively utilize the Internet and social media. Your brand is the first thing customers enter into a search engine or social media platform (Facebook, Twitter, Pinterest) when looking for your products and services.

5. Trademarks can appreciate in value over time. The more your business reputation grows, the more valuable your brand will be. When you sell your business, you won’t only company set-up. Most importantly, your trademark/brand. You can charge as much as you like if you made it appealing enough and it is registered, needless to say. If you desire it, your trademark can lead to the acquisition of your business by a larger corporation.

In sum, Brands are a critical asset. Do your due diligence before investing a lot of time and money in launching a new brand. Be sure the brand fits your company. Obtain a clearance search to make sure your new brand is available and doesn’t infringe on anyone’s prior rights. Act, today!

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Are Employers Liable for Workplace Violence?

Because employers are required by law to provide safe workplace and safe employees, employers could be held liable for negligent hiring and negligent retention.

In negligent hiring actions, the plaintiff argues that “but for the employer’s lack of exercising his duty of care before hiring the person who initiated the intentional injury, the victim would not have been harmed”.

In negligent retention actions , the employer is responsible for its failure to take appropriate action when becoming aware of the employee’s unfitness. For example, if employers should have reassigned, provided training and terminated the employees whom they know have violent tendency, the employers will be held liable for the damages of the victims.

In summary, employers must assess their liability for work-related violent incidents, and must take action to create a safer work environment. Failure to do so exposes them to lawsuits based on claims of negligent hiring and negligent retention. To avoid these problems, companies should implement a stringent pre-employment selection program, a zero tolerance policy that bans possession of weapons on company premises, and a workplace training program that addresses prevention techniques.

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