It’s important to consider the way you treat your personal assets when you’re starting a new business. If you do things right, you should be able to separate your personal and business assets, protecting yourself, even if your business goes broke.
It’s always a good idea to speak with a decent commercial lawyer or account before taking any drastic financial management steps, but it’s also a good idea to know what options are available to you before you speak to anyone.
With this in mind, we’ve put together a short list of the top 5 things you can do to protect your personal assets when you’re starting a new business. They include:
- Structure yourself as a company
Structuring your business as a company, rather than as a small business or sole trader, can help protect your personal assets. Companies are seen as separate entities, and only the company’s assets will be at risk if something goes wrong.
A business planner or commercial lawyer will be able to help you decide what the best business structure for your financial needs is.