Ultimate Legal Defense

Any small business owner should know the ultimate defense against frivolous lawsuits and loss of property. There are three main components to asset protection: commercial property, stocks and home. These three factors are the basis for an LLC or S-Corporation. If you already have these, it is time to upgrade. If you don't already have these, make it a priority.

Having an LLC or S-Corporation is the first step in creating a family limited partnership as a defense from frivolous lawsuits. Hire a lawyer or someone who specializes in asset protection to insure penalties will be paid through dividends not confiscation of property and liability is questionable; ergo, making a wealthy person similar to a working-class person.

Frivolous lawsuits are awful. The only people who win are lawyers. A person is encouraged to sue when placing a huge number like $3,000,000. If all they lost was a cup of coffee, they will get $1.29. In the United States a person may sue for as much money as they want. This does not mean they will receive the claim amount after winning. People are awarded damages. If a doctor botched a tubal ligation making it so the person had to get an abortion and then another tubal ligation they will receive compensation for the abortion and second tubal Ligation. They will not receive missed wages or pain and suffering. It was worth suing though their reimbursement is only a percentage of filing fees, retainers and hourly consultant fees paid to the lawyer.

In the past, lawyers target the wealthy because they can pay fees quickly. In issues of suing a working-class person the working-class person will spend years paying off debt; therefore, courts favor the poor person, even though they will only receive a nominal amount. Fortunately, new laws require lawyers to give an honest estimate of what claimants will receive in the lawsuit. This helped immensely, yet there are still people who believe they will get rich quick by suing a wealthy person.

Family limited partnerships do not protect business owners form legitimate lawsuits; however, attorneys are more willing to accept a settlement and avoid going to court. An honest business assess damages through receipts and send a check. This should not require legal interaction. An honest person will accept the settlement.

Family limited partnerships do not make business owners exempt from criminal prosecution. It protects personal property, a right everyone should have, since it is not owned by one person. Since it is shared property police are unable to confiscate property from an innocent person. When more than two parties have equal rights to property all parties must be guilty of the crime. Often people list the office building as an equal partner. An inanimate object is unaware and unable to participate in crime. Even if the building was haunted the ghost not the building was responsible for wrong doing.

To understand the finer parts of liability, think of a band with four members. The band needs housing, food, clothes and a tour bus to perform concerts and pay loans. One person in the band was found guilty of dealing drug and goes to jail. The band still has to go on tour. Should three innocent band members, roadies, banks, investors and audience be punished for the action of one person whom they thought was clean after going to rehab.

The partnership acknowledges other people need access to property to maintain livelihood. Family limited partnerships are also flexible. Each band member establishes their partnership with their percentage of earnings to avoid overlap and avoid complicated divisions of ownership if the band breaks up.

It is unfair people have to be wealthy enough to afford a logical defense of property. Why is everyone in association to a criminal punished? Fair or not, business owners are accountable for keeping several employees in house and home. One con-artist or criminal should not be able to destroy countless people's lives.

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