If you own a business you have probably been told to just set up an LLC or Corporation and you are protected. Unfortunately, this strategy may not protect you. In many cases it is most effective to have multiple entities to separate the business from the assets. Yes, you can use an LLC to manage the business but it may be unwise to hold significant assets in the LLC. Really you will need to have at least 2 entities to run a business. This causes more separation and therefore more protection for you and your family.

Simply owning a business can help you save thousands on taxes and help protect what you own. This holds true more most Americans even if they do not have a large business. Home based or asset management businesses can do wonders for your tax bill.

Although every business is different, the general rule of thumb is to have at least two business entities. One to manage the business and one to own the assets of the business.

This may seem overkill for many of your accountants and advisers from a cost and tax standpoint but if you stand back and take a look at the overall picture, it is easy to see the benefits. When in doubt, asset protection is most important, but you may as well work in as many tax benefits as possible.

The hardest thing is balancing the tax benefits and the asset protection strategies. The fact is, if you own a business you will need both. Verify with your advisor the asset protection strategies. If you would like more information on selecting an advisor see our article on How to select an Asset Protection Attorney at http://www.protectwealth.org/attorney.htm this applies to most financial advisers as well.