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Asset Protection Services for Hobart Businesses

Establishing asset protection measures as a last line of defence in protecting your wealth is a vital step in securing your future.

The purpose of asset protection is to reduce the impact of events when things go wrong (whether those events are within or outside of your control). It’s an important fall-back position for when:

  • You have failed to identify or manage a material risk
  • There is no suitable alternative but to simply accept material residual risk

Regrettably, many business owners do not place sufficient emphasis on protecting their wealth despite the:

  • The more successful you have been, the more you have to lose
  • More successful you have been, the greater the chances are that a ‘gold-digger’ will initiate a claim against you, whether it’s a legitimate claim or not
  • More successful you have been, the greater the chances are that a ‘gold-digger’ will initiate a claim against you, whether it’s a legitimate claim or not

Disasters occur all too often, and it is typically too late to fix your affairs once the ‘horse has bolted’. It is far better to act first, to shut the gate before the horse bolts!

Fortunately, with a little planning and sound advice, you can typically improve the protection of your assets, thereby reducing the impact of both foreseeable and unforeseeable events. In essence, asset protection is a range of strategies that involves separating valuable assets from the risks that may affect their value.

In this way, basic planning and business structuring can mitigate risk in a highly cost-effective manner. This is especially important for those risks that are hard or impossible to foresee (and therefore manage).

Factors Affecting Your Business Structure

At the heart of any sound asset protection plan lies the legal structure of the business and the ownership arrangement of personal assets. To a large extent, your business’ legal structure determines many key aspects of your asset protection, after-tax wealth creation outcomes, capital-raising capability (both debt and equity), and succession and exit planning. All of these factors are important and must be taken into account when selecting the most appropriate legal structure. Ultimately, your legal structure needs to:

  • Provide appropriate control and ownership
  • Meet the operational and strategic needs of your business
  • Accommodate the nuances associated with your particular industry and regulatory requirements
  • Accommodate the requirements of your personal circumstances, goals and objectives
  • Provide the flexibility needed to accommodate future growth (expansion of your structure, changes in your family and personal circumstances, etc.).

The Golden Rules of Asset Protection

We cannot predict or control all risks. From time to time, events occur that force us to rely on the defensive approach of asset protection to limit the impact of risks.  Asset protection incorporates a range of strategies that involve the separation of valuable assets from risks that may impact their value. In particular:

  • The separation of the legal ownership of assets from those legally responsible for losses associated with any given risk
  • Where it is not possible to separate assets from risk, granting security to others in a manner that either protects the assets or exposes minimal

Accounting and Taxation Services in Hobart

In addition to our Risk Management & Asset Protection services, we also provide Accounting and Taxation services to keep you on track and compliant.

Incorporating our Accounting and Taxation services into your business growth plans enhances your business performance and after-tax wealth.
To take your business to the next level, get in touch today.