Protecting personal assets

[SageMother]

What is the best way to protect your personal assets when operating a home business?

[Melizzy]

You should personally incorporate is what i have been told. Don't know why, but maybe somebody could tell us?

[mamab]

I was told to do an LLC, Limited Liability Company, but I'm not sure that's the best thing.

[gblued]

I have heard both those pieces of advice, plus another! My dad always transferred anything valuable to my mother´s name, saying that it would be protected under her ownership if anything went wrong with his business. Not sure if that is the best thing to do, could get messy in a divorce, but that is what they did!

[moonmagick]

I have heard of people transferring property into a family members name also. I am not sure of the legalities of it, but it worked for them.

[PiscesGirl]

Yes, the LLC is the way to go to protect your personal assets. It is not hard to incorporate yourself rather than using a lawyer.

[mamab]

I would say that transferring personal property to someone in the family would be a good idea, unless they co-sign for any of the business expenses. In our case, my husband and I both signed for the loan we got, so that option doesn't work for us. I have, however, been told that even if you default on business expenses, they can't take away your home or your car because you HAVE to have them. Is this information correct?