MULTIPLE COMPANIES EQUAL MULTIPLE ENTITIES
ENSURE YOUR BUSINESS IS PROTECTED
straightforward process that, as counterintuitive as it sounds, involves us creating some complexity within these structures so they’re less liable to suits and are better protected. We have to create these legal complexities to ensure that the first person who wants to can’t sue you. We’ll call on another analogy here, that of securing your home. You could opt to simply lock your doors when you leave and call it good. Or, you could set up an alarm system with a camera that records any suspicious activity while you're not home. Sure, it’s a little more involved to set up, but it’s going to offer way more protection in the long run.
One of the most common questions we get asked by business owners is, “If I have multiple business endeavors, should I have them listed under multiple companies?”
The answer is a resounding “Yes!” especially if your endeavors have different risk exposures.
For example, let’s say that in addition to your main business, you put on mastermind workshops for other business owners. As part of the experience, you take the group out and drive race cars. If one of the drivers crashes their car and gets hurt and your mastermind is under the same entity as your business, then your entire business can be pulled into that lawsuit. Everything you own is potentially at risk. It’s kind of like if you try to use one umbrella to cover your entire family — aunts and uncles and all. It’s not going to provide much protection, and everyone is going to be at risk. Establishing multiple entities for your businesses provides an umbrella for each family member so that everyone is protected. Establishing these entities is a fairly
Wouldn’t you rather have better protection for the things that really matter?
Setting up these entities is not a difficult process, but you’ll want to have guidance from an experienced business lawyer, like our team at REIBLAW. Call us today to establish the structure you need to ensure each facet of your business is shatterproof.
EASY IRISH SODA BREAD
We want your feedback! Each month, we’ll ask a question to our business community to find out what you need guidance with and how we can best serve you.
Inspired by AllRecipes.com
INGREDIENTS
• 4 cups all-purpose flour • 4 tbsp white sugar • 1 tsp baking soda • 1 tbsp baking powder • 1/2 tsp salt • 1/2 cup margarine
Here’s our query for this month.
• 1 1/4 cups buttermilk, divided • 1 egg • 1/4 cup butter, melted
Since we’ve been talking all about entity formation, we’re curious:
Have you formed multiple entities for your different businesses? If so, has this structure served you well?
DIRECTIONS
1. Heat oven to 375 F, and lightly grease a large baking sheet. 2. In a large bowl, combine flour, sugar, baking soda, baking powder, salt, and margarine. 3. Stir in 1 cup buttermilk and egg, and mix until dough comes together. 4. Knead dough on a lightly floured surface. Form dough into a round before placing it on baking sheet. 5. In a small bowl, combine melted butter and remaining 1/4 cup buttermilk. 6. Brush the raw loaf with this mixture and cut an “X” into the top. 7. Bake loaf for 45–50 minutes, or until a toothpick comes out clean after being inserted into center of loaf. You may need to continue brushing the loaf with the butter mixture while it bakes.
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