Asset Protection — Corporations, LLCs, and Limited Partnerships
Protect Yourself and Your Family From Personal Liability: If you Own Rental Property or a Business - have you considered Asset Protection to Limit your Personal Liability?

What are the Possible Consequences of Being Personally Liable for Business Debts and Obligations?

Personal liability can devastate the accumulated riches of a lifetime of work. This form of liability opens the individual to claims for a wide range of business obligations. Most people realize that personal liability may extend to business losses, but other obligations may also reach individuals, including:

— damage awards in lawsuits;
— tax deficiencies and penalties; and
— back wages and benefit payments.

Example: John and Josie operate an apartment building as sole proprietors. One of their tenant's friends dives from the diving board into the pool and suffers a serious spinal injury. The company's insurance and assets are inadequate to cover the damages awarded in the personal injury and loss of consortium suit, so the plaintiffs enforce their judgment against John and Josie's personal assets.

The limited liability offered by incorporation, or forming an LLC, shelters business owners from personal liability. Some insurance can also help cover business owners, directors, and officers. However, if an owner or director performs certain personal acts, behaves illegally, or fails to uphold statutory requirements for corporate or LLC status, he or she may face personal liability despite the corporate or LLC shelter.

- Article content derived from FindLaw, a Thomson business

Services and Fees for Business Entities

I.	CA Registered Agent Services Only (For Entities Formed in CA or Foreign Entities Registered in CA	$125.00 Annually
II.	Formation of Business e.g. Incorporation, Drafting Bylaws, Shareholder Certificates, etc., Filing annual reports, Compiling Corporate Record Book ,Etc.	$850 - $3,000* per entity (variation due to State, number of properties, etc.)
III.	Annual Maintenance* e.g. filing your annual reports, filing your annual franchise tax payment, amending your Bylaws or Operating Agreement, updating your records, Etc.	$650.00 (and up) Annually (including 30 minutes personal consultation time regarding your company)(or hourly rate of $150.00)

* Record Keeping is essential to maintain your asset protection. You should consider professional annual maintenance services if any of the following have occurred since your entity's start date:
— You need to file your annual report or pay your franchise tax;
— You've had a registered agent or address change;
— You've had a manager, director, or shareholder change;
— You need to prepare a consent to action or meeting minutes to reflect a new lease or bank, a dividend payment, share transfers, or a contribution to a profit sharing plan, to name a few;
— You have questions about changes in the law or your compliance with the current law

Plan Your Legacy, Preserve Your Wealth, & Protect Your Children