Complex Structures and Deals for Asset Protection Planning
Consider some of the following arrangements to provide added security for your business, all of which presume an owner of higher-risk company ("HRC"):
- Having another company (possibly one you also control) own the HRC's furniture, equipment, etc. and lease them to the HRC, with a lease that can be terminated to "yank out" the assets provided in the event of certain occurrences such as bankruptcy or insolvency of the HRC—to ensure that those assets aren't exposed to the liabilities of the HRC leasing the assets, and your equity in those assets remains safe;
- Creating another company to bill the HRC's customers and handle accounts receivable/collections actions that contracts with the HRC, so that the value of those accounts receivable are not considered an asset of the HRC doing the work, and so a management fee can be earned by your billing/collections company and control over when and if payments are made to the HRC;
- Accounts receivable factoring, allowing the HRC to borrow against its accounts receivable and thereby strip them of their value;
- Creating a defined benefit plan to take advantage of state and federal law protections like ERISA and ensure a protected retirement;
- Having the HRC own an insurance company or risk retention group to become self-insured, allowing the HRC's owners to collect the profits that would otherwise be paid to a third-party insurer.