Asset Protection in Startups

Protect Your Growing Business — Before It’s Too Late

If you’re building a business you know will succeed, the best time to protect it is beforeit takes off. Too many entrepreneurs focus only on growth and wait to think about legal protections until they’re locked into leases, vendor contracts, or even when they’re already facing lawsuits. By then, you’re stuck trying to fix things in a crisis — and that can backfire.

Smart business owners use proven asset protection strategies early. That can mean setting up a thoughtful holding structures for example, and separating valuable assets like your brand, trademarks, or technology into one entity and licensing them back to the operating company. If your brand gains power, you don’t want it automatically exposed to every slip-and-fall or contract dispute.

Many owners also build in extra layers of protection by incorporating entities in business-friendly states or placing certain assets in trusts — sometimes even an irrevocable trust — to keep them beyond the easy reach of creditors. This can add tax planning benefits and succession advantages, too.

It’s equally important to avoid personal guarantees whenever you can — especially for commercial leases and vendor agreements. The right limited liability entities, used properly, help make sure your personal wealth and your business assets don’t all sit in the same basket for creditors to reach.

Fraudulent transfer laws exist to unwind last-minute asset shuffling. So don’t wait until there’s a problem. A smart ownership structure, separate entities, and strong planning now can give you peace of mind — so you can grow what you’re building without unnecessary risk.

At Recalde Law Firm, we’re experienced on both the litigation side and the structuring side of asset protection. Our litigation work gives us a unique understanding of where creditors and opposing counsel focus — so we know how to plan around those pressure points before they ever arise.

We can help you design a strategy that makes sense for your business — whether that means setting up trusts, holding companies, layered legal entities, licensing your intellectual property, structuring your leases, or protecting your trademarks.

If you’re ready to plan ahead, let’s talk.

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