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14 - The Oakville Beaver Weekend, Saturday February 21, 2009 www.oakvillebeaver.com YOU OWN A BUSINESS. COULD YOUR BUSINESS AND FAMILY ASSETS BE IN JEOPARDY? The Incorporators Will Build A Corporate And Personal Structure For You That Will Ensure Such A Situation Does Not Occur. The question is what can you do to prevent such an occurrence. Some businesses are relatively benign when it comes to the exposure to Lawsuit but others have a high degree of risk. If your business is in the latter category, here are some of the steps you can take to minimize your exposure: Step 1 Incorporate your business; in this way, any suits would be limited to the assets of the Corporation; the foregoing would also apply to any claims your creditors might have in the event of a bankruptcy. Step 2 If your business is capital intensive, incorporate a separate company to hold all the major assets of the business; again, should a lawsuit be filed against the Company or your business fail, there will be no assets for your creditors to attach. Step 3 If your business is made up of more than one distinct business, it may be wise to incorporate separate companies for each business as, if one business fails, you will not lose the other businesses. Step 4 Only one spouse should be a Director of the Corporation as well as being all The statutorily required (President, Chairman Of The Board, Secretary-Treasurer) officers. All family assets including the house, bank accounts, mutual funds, investments, etc. should be transferred into the name of the remaining spouse. In this manner, should certain liabilities survive the corporate umbrella, once again, there will be no assets in the hands of the Director for the creditors to attach. You cannot do this after legal proceedings have begun. Step 5 Transfer all your investments and RRSP's to funds that are administered by life insurance companies as creditors cannot attach any funds held under the life insurance `umbrella'. In addition, some life insurance companies will guarantee your capital even if the life insurance company itself goes bankrupt. Written By E. L. Foster, President of The Incorporators / The Tax Advisory / The Business Advisory Inc., Oakville Beaver Readers' Selection First Place Diamond Award winners in the categories of Incorporation Services, Tax Preparation Services and Business Advisory Services for the last six years. ARE YOUR BUSINESS AND FAMILY ASSETS PROTECTED IN THE EVENT OF A LAWSUIT OR BANKRUPTCY? COMMITTED TO REDUCING THE INCOME TAXES THAT YOU PA Y www.thetaxadvisory.ca 25 25 YEARS YEARS 2 25 25 Y A YEA YEARS YEARS 25 25 2 25 YEARS S YE YEARS YEA YEARS ARS ED FOSTER 2PLACE DIAMOND 25 2 25 25 VOTED25 AWARD WINNERS IN THE CATEGORIES 5 YEARS YEARS FIRST YEARS YEARS OF INCORP ION SERVICES, TAX PRE 25 SERVICES 6 YEARS IN A ROW! 25RVICES ADVISORY YEARS 25 BUSINEAND BUSINESS R OVER 25YEARS 25 SMALL AND HOME BASED 5 YEARS SERVING YEARS EARS 25 25 YEARS 25 25 25 25 YEARS YEA INCORPORATORS ARS YEARS 25 25 25 25 YEARS YEARS YEARS YEARS ss whose annual ne · Any business which has a risk o ut everybody. ss of $20,000; ich in today's litigi 25 YEA 2 YEA 2 YEA INCORPOR ATING YOUR COMPANY WILL PROTECT YOUR BUSINES S AND FAMILY AS SETS. 25 YEARS EARS 25 5 YEARS ARS 25 5 YEARS ARS YEARS Who Should Incorporate? YEARS Why Should I Incorporate My Business? · To pay less income tax. your business and f ur business greater credibility. · To protect your business name. our creditors. Why Should I Have `The Incorporators' Incorporate My Business? re one-third to one-half that of our competition. · The Articles of Incorporation th ou will be desig such a way as to provide you with maximum flexibility in your corporate and ncome tax planning. een incorporating comp twenty-five years ADVISORY THE TAX THE TM ADVISORY THE BUSINESS COMMITTED TO INCORPORATING YOUR COMPANY THE RIGHT WA THE FIRST TIME Y www.theincorporators.ca www.thebusinessadvisory.ca COMMITTED TO MAKING YOUR BUSINESS A SUCCESS