With the downturn in the economy and more people losing their jobs, more people are turning to their entrepreneurial spirits and starting their own businesses. At-home businesses are booming and website like “E-lance” allow people of all professions to do consulting work from home by matching independent contractors with individuals looking for help. Some even turn these jobs into full-time employment.
Independent Contractors Lack Benefits
Independent contractors work for themselves as opposed to working for a company. They typically do not get benefits and are liable for their own business expenses and insurance. Independent contractors should seriously consider forming their business as a Limited Liability Company (LLC).
An LLC Can Protect Personal Assets from Business Creditors
Whether an individual is cleaning houses, writing newspaper articles, or doing bookkeeping on a consultant basis, an LLC can protect an individual’s personal assets. Personal assets are typically not at risk. A creditor of the LLC would be able to seize or place a lien only on assets belonging to the LLC to satisfy debts of the company. A creditor of the LLC cannot seize or lien personal property to satisfy debts of the company (there are limited circumstances where negligence, fraud or by contract the law does not allow the protection). Most people may never need the protection of an LLC but the process of formation is simple and it can save your home and other assets in case your business falls on hard times.
Getting Legal Help
An experienced estate planning attorney works with clients to understand all the options for protecting and growing their estate assets, including strategizing on protecting business assets. Experienced Estate Planning Attorney Elga Goodman can help you create a plan and find the resources you need to fully protect and preserve your assets. Contact us today at 973-841-5111 to learn more.
Posted in: Estate Planning, New York Estate Planning