One of the most important decisions you will make when startinga new business will be the selection of a business structure(i.e. business entity). The main business structures available underTexas law are sole proprietorships, general partnerships, limitedpartnerships, registered limited liability partnerships, corporationsand limited liability companies.
Typically, the two main considerations when selecting a structureare the liability protections afforded an owner of the business, andthe federal and state tax implications associated with the structure.This article will provide a general overview of the foregoing businessstructures as well as the tax and liability implications associated witheach of them.
In planning for your future, you presumably spend a lot of timeanalyzing and monitoring your various wealth managementprograms. It’s likely that you have consulted or work regularlywith a financial planner to optimize your portfolio. And why not?You’ve worked hard to attain your financial freedom, so maintainingit should be a top priority.
As a successful professional, you have high expectations anddiscerning taste. You have unique possessions, and they’re oftenirreplaceable. You certainly have insurance for these expensivebelongings, but have you really considered if it’s thorough? If yoususpect that your coverage isn’t consistent with thehigh quality of your personal property, it is imperativethat you meet with your insurance advisorfor a professional review.
As you’ve accumulated wealth through theyears, your insurance profile and financial riskshave become increasingly more complex. However,many individuals in your position do notrespond to this subtle dynamic, and often theirinsurance protection becomes inadequate. Asyour financial planner assesses your portfolio’srisk, so too should an insurance specialist evaluateyour various property and liability exposures.If your insurance agent isn’t already proposing innovativesolutions, then it is recommended thatyou interview other insurance specialists who willfulfill your individual product and service needs.
Why You Need a Risk Advisor
You probably already know you need specialized insuranceproducts and services. However, if you’re like many successfulprofessionals, you may not have time to go beyond a simple policycomparison process or recognize your potential risk. Some individualsremain unaware of their sophisticated insurance needs untilit’s too late—when a loss occurs.
The right risk advisor is someone who understands the hazardsconfronting the wealthy and provides a superior level of serviceto their clients. An independent advisor or agent—one whorepresents the client and provides quotes from multiple insurers,including those with highly complex and customized productportfolios—is always an excellent choice. Independent agents evaluatenumerous premier companies on these essential criteria andprovide a concise recommendation:
- What’s the financial rating of the company?
- How is their claims service rated?
- What additional coverages are available?
- How does the company handle defense costs and access to legal counsel?
Types of Risk Assessment
Obviously, one of your primary considerations when evaluatingyour personal insurance needs is your homeowner’s policy.Premier carriers provide on–site residential home appraisals soonafter the policy has been issued to better understand the exposuresthat may threaten your assets. They recommend ways to reducethe chance of a loss, and ensure that your coverage is sufficient torepair damage should it occur.
When desired, a specialist can provide valuations of yourhome’s contents and valuables. The appraiser will estimate yourhome’s replacement cost and analyze all data to formulate safetyrecommendations. Once a comprehensive appraisal is complete,a bound report, which notes special features and includes photographsof your home, is provided to you. This valuablebenefit ensures that, in the event of a loss, your insurercan restore your home to its original beauty.
Specialized excess liability coverages you may require Beyond Homeowners and Auto Insurance
As an affluent professional, there are severalinherent realities that increase your exposure levels.As such, it’s likely your excess liability needs go farbeyond traditional homeowners and auto insurancepolicies. Below are some examples of situations thatamplify risk:
Perhaps you’re well–known in the community,rendering you vulnerable to individuals who can potentiallyundermine your personal and financial security.Or maybe you serve on the board of a public,private, or nonprofit organization; in this particularsituation, you may eventually find yourself engaged ina lawsuit, for which your personal liabilities are ill–prepared.
If you often conduct personal business online using wirelesstechnology, you may be exposed to multiple liability losses on accountof targeted identity theft that could divert thousands or evenmillions from your bank or investment accounts.Owning secondary homes, employing domestic staff, experiencing"wealth transfers" (e.g. selling a business, etc.) can all threatenyour current or future net worth.
Key to Finding the Right Risk Management Solution
Clearly, it is important to acknowledge your need for specializedasset protection. Therefore, it is critical to respond to thisneed immediately, and with the excellent guidance that only aninsurance specialist can provide. In their capable hands, you canbe certain that you will receive the exceptional service and highlysophisticated products you require and deserve. An independentadvisor will work with you to understand your unique goals andensure you maintain your financial security.
