Asset Protection Attorney – Protect Assets from Creditors
Written by JGPC Business Law on July 19, 2019. Updated June 2026.
Asset protection helps business owners separate personal wealth from business liabilities and reduce the risk that personal assets could be exposed to creditors, lawsuits, or business debts. Establishing the proper legal structure and implementing asset protection strategies early can help safeguard your financial future if challenges arise.
Everyone who opens a business does so with the intention of making a profit, so why do so many businesses in Fremont, Livermore, and elsewhere end up failing? Even worse, almost any holiday party or barroom bull session will involve someone telling a story of how his long-standing financial woes began with a bad business decision. The fact that businesses sometimes fail to make a profit and have to close is just a normal part of capitalism, but no one’s personal financial situation should be ruined because of a business failure. The best thing that business owners in the East Bay can do to avoid this problem is to seek professional legal advice regarding asset protection, and to do it now, before the big financial problems start.
What Is Asset Protection?
Assets are anything you own, including money and other types of property. Assets can belong legally to you or to a business entity. When a business closes, it liquidates (sells) its assets and uses the money to pay as many of its debts as it can. If the money is not enough to settle all the debts the business incurred (and it usually isn’t, or else the business would not have closed), creditors will come after the business owner’s personal assets, if they can, to pay the remainder of the debt. Through asset protection, business owners can avoid having to use their personal assets to pay business debts.
Asset protection often takes the form of setting up a business entity to keep the assets of the business separate from your personal wealth. The differences among the various types of business entities have mainly to do with taxation and with what kinds of asset protection they offer. The limited liability company (LLC) entity designation is especially popular for the asset protection it offers.
When to Set Up a Business Entity for Asset Protection
The time to think about asset protection is now, before you even start your business. You will need asset protection structuring if the business closes, but you will also need it if your business becomes a party in a lawsuit. Likewise, business asset protection can reduce your financial losses in a divorce, but don’t wait until your marriage is in trouble, or even until you get married, to think about asset protection.
Contact JGPC Business Law About Asset Protection for Businesses
Jim Gulseth and the other attorneys at JGPC Business & Corporate Law keep asset protection in mind whenever they help someone establish a business. Contact JGPC Business & Corporate Law at (925)463-9600 about asset protection.
Frequently Asked Questions
What is asset protection?
Asset protection refers to legal strategies designed to help shield personal or business assets from creditors, lawsuits, and financial liabilities. For business owners, asset protection often involves selecting the appropriate business structure and maintaining proper legal documentation.
Why is asset protection important for business owners?
Without proper planning, business owners may face financial exposure if their company encounters significant debt, litigation, or other liabilities. Asset protection strategies can help reduce the risk of personal financial losses arising from business-related issues.
Can an LLC protect my personal assets?
In many situations, a properly formed and maintained LLC can help separate personal assets from business liabilities. However, liability protection is not absolute and may be compromised if legal requirements are not followed or if personal and business finances are improperly mixed.
Does asset protection only help if a business fails?
No. Asset protection can also help reduce risks associated with lawsuits, contractual disputes, creditor claims, and other business-related liabilities that may arise during the normal course of operations.
What are common asset protection mistakes made by business owners?
Common mistakes include operating without a formal business entity, failing to maintain corporate records, commingling personal and business funds, signing unnecessary personal guarantees, and delaying asset protection planning until problems develop.
How can a business attorney help with asset protection?
A business attorney can evaluate your specific risks, recommend appropriate business structures, prepare governing documents, help maintain legal compliance, and develop strategies designed to protect both business and personal assets.