Most of the mistakes that some investors and entrepreneurs make is not to protect their equity while they are accumulating capital.
All of us are always concerned about increasing our equity every time.
But there is also something important, to keep your assets safe, against crises and protectionist and populist governments.
Protecting your assets is the way to financial independencea
When we begin our investments, we work, we put our money together, and we are hard-pressed to achieve financial independence.
Remembering that more important than having equity is to maintain.
I am not referring here to the protections against events that we do not have control of, such as theft, accidents, fires, etc., for which there is already the traditional Loss Insurance.
I am referring to the legal protections of our personal property against financial difficulties in your company, personal life or even the government.
Protect against venture risks
If you are entrepreneur it is interesting to protect your investments to avoid potential losses if your venture is wrong.
And you can be sure that it happens a lot.
But do not be afraid to risk, just risk without fear …
When opening a business, always look for the type LLC.
So the risk of your capital is limited to what you invested in the company.
Limited companies such as asset protection
As I said earlier we can use limited companies for such an advantage.
However, this patrimonial protection is not intended to circumvent the treasury or to defraud creditors, but to give its members limited liability to the value conferred on it to the capital stock of the company, not putting at risk their personal assets to the detriment of what may occur with the business.
In fact, the patrimonial protection is fundamental for the businessman who tries to survive in an extremely competitive market with rare incentives and with more and more obligations.
Usually limited companies LLC serves as a glove for such equity protection cases.
LLC can easily be structured to separate control (management / administration) and ownership rights (partners / owners).
In addition to providing a mechanism by which managers can limit the authority of non-manager members.
And the company can be open less than a month, see more about offshore companies.
Beware of Confiscation
Protect your assets against government or confiscation.
They will always find a way to put a tax on their assets, to further inflame the state.
Not to mention that at any time they can create a tax or confiscate their assets, all within the law.
The thief is such that they are taking their property without even realizing it, for they come disguised as laws.
Take the case of some South American countries, all given to protectionist governments, which condemn entrepreneurs.
Protecting your assets and your investments without doubt will make you live more peacefully.