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What steps should I take to protect my personal assets as a small business owner in Florida?

Picture of Chris Battis By   ·  1 minute read

Protecting Your Personal Assets as a Small Business Owner in Florida

As a small business owner in Florida, it is important to take steps to protect your personal assets. Here are some suggestions:

  1. Choose the right business entity: One way to protect your personal assets is by forming a limited liability company (LLC) or a corporation. These business entities have separate legal identities from their owners, which means that in most cases, the personal assets of the owners are protected from the business's liabilities. However, it is important to note that this protection is not absolute, and in some cases, courts may "pierce the corporate veil" and hold owners personally liable for the business's debts.
  2. Get insurance: Another way to protect your personal assets is by getting insurance. General liability insurance, professional liability insurance, and product liability insurance are some of the types of insurance that can protect your business from claims made against it. It is important to review your policies periodically to ensure that you have adequate coverage.
  3. Keep personal and business finances separate: Keeping your personal and business finances separate is crucial to protecting your personal assets. You should have a separate bank account for your business and use it exclusively for business purposes. Similarly, you should have a separate credit card for your business expenses.
  4. Keep accurate records: Maintaining accurate records of your business transactions can help in case of any legal disputes. You should keep all your receipts, invoices, contracts, and other documentation related to your business.
  5. Follow the law: As a business owner, you must comply with all relevant laws and regulations. Failure to do so can result in legal action against your business, which can put your personal assets at risk.

It is important to note that while these steps can help protect your personal assets, they are not foolproof. In some cases, courts may still hold owners personally liable for their business's debts. If you have concerns about protecting your personal assets, you should consult with an attorney who can provide tailored legal advice based on your specific situation.