Advanced asset protection using multiple business entities

[awkwardgenius]

This is something I've been working on with my business mentor, a veteran entrepreneur of over 40 years, to make accessible to the small to mid sized business, where it was previously inaccessible to all but the largest multinational corporations, with their floor full of highly paid finance professionals. We're of the opinion that, in the current political and economic climate, it's going to be difficult (if not impossible) to compete using the traditional monolithic business structure in the near future.

A single entity of the proper type can provide tax advantages, and certain protections (e.g. limited liability) under the law. This is fine for most very small businesses (say, under $1mm sales size).

But next time you're at Arby's, I'd encourage you to look at the paper tray liners. You'll notice that the trademark doesn't belong to Arby's Inc, but to a separate company. That entity owns all of Arby's IP, and licenses it back to another Arby's-owned entity (e.g. a management company). There are likely other entities serving various business purposes as well.

So why would they do this? Well, when you have multiple legal entities serving distinct business purposes in your organization, you open up a world of possibilities that didn't exist for you before. Your business becomes clay in the hands of a creative entrepreneur.

You're able to enhance the balance sheets of one of your companies (all with absolutely audit-able transactions, serving verifiable business purposes) to make that entity an ideal candidate for lending or investment capital, where your previous single-entity business would have been denied for not meeting specific ratios or not falling into the right industrial categorization.

You can create rock-solid asset protection against litigation and regulatory expenses by creating isolation between your operating entities and those which hold assets.

You can maximize your tax advantages by structuring each entity to receive the maximum benefits available under the tax code.

You will begin to recognize new income streams using existing resources and assets, as you start to optimize the operation of each entity (e.g. the company that holds your IP may begin licensing that IP to others for additional revenue, or your sales force begins forming joint ventures to cross-sell related products from other companies).

The possibilities are absolutely staggering when you start to see this structure unfold before you.

Now, here's the catch...there's a reason primarily only Fortune 500 companies did this before. It takes either a very, very savvy entrepreneur who can manage all of the added complexity in his head, or you need a team of pros who can do so on your behalf. You don't want to be on the wrong end of an audit because you did something stupid that you can't justify at the end of your tax year.

If this is something that interests anyone here, I'd be very happy to set up a live training with my mentor and partner, and we can explain the finer points of how all this works. This isn't a sales presentation. When you leave, you'll know exactly how multiple entity structuring works, and you'd be able to theoretically go implement it for yourself. It's going to be very educational in nature, and it's going to be free.

That said, in the interest of transparency, we will be demonstrating using a system we developed to help manage and minimize the complexity and financial overhead this sort of structuring creates. If you're interested, we can work with you to implement the strategies using our tools and support. But there's no pressure, and no obligation. We do think this is the best thing since sliced bread for business, and that's why we're willing to completely show our hand, because we think once you see how easy we make it, you'll trust us to help you implement it.

If you operate a business grossing at least $1mm, you can either PM me, or click my signature to request a training. Again, this isn't a sales pitch...it's an offer for free education on a very powerful method for structuring your business. If you end up working with us to do it, that's just gravy, and we're happy to help.

 

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[Mr_Imhotep]

opvisitv qutv!