Latest news with #LLCs
Forbes
05-08-2025
- Business
- Forbes
Beyond Insurance: How To Defend Your Business Against Lawsuits
Blake Harris is an Asset Protection Attorney and Founding Principle of Blake Harris Law. For many business owners, insurance is viewed as the primary line of defense against legal threats. But relying solely on insurance to shield your business from lawsuits may offer a false sense of security. Policy exclusions, caps on coverage and claims denials can leave entrepreneurs unexpectedly exposed, especially in industries where litigation is common. That's why business owners serious about long-term protection should consider a layered approach—one that includes legal structures designed to insulate personal and business assets from creditors and plaintiffs. From LLCs to asset protection trusts, these tools offer powerful, often underutilized safeguards that go far beyond a standard liability policy. The Limits Of Insurance Insurance is a critical component of any risk management strategy. But even comprehensive policies don't cover every scenario. Some common gaps in coverage can include punitive damages, claims arising from fraud or intentional misconduct and newer risks like data breaches or cyber liability. These exclusions are typical in many standard policies. What many entrepreneurs don't realize is that simply being sued—regardless of the outcome—can be financially draining. Legal fees, time away from operations and reputational fallout can do serious damage before insurance even comes into play. Litigation costs can be disproportionately burdensome for small businesses. That's why asset protection needs to begin long before a claim is ever filed. Forming The Right Legal Entity The foundation of business protection starts with selecting the appropriate legal structure. Sole proprietorships and general partnerships offer no liability insulation, meaning personal assets like homes and savings accounts are fully at risk. Incorporating as an LLC or corporation creates a legal separation between business and personal assets, shielding owners from many types of claims. The U.S. Small Business Administration confirms that LLCs and corporations can protect personal liability. However, not all entity structures are equal. In high-risk industries or for businesses with multiple revenue streams, setting up a multi-entity structure—such as operating LLCs owned by a holding company—can further isolate risk. Segregating liabilities by function or location helps limit exposure from one part of the business affecting another. Importantly, the benefits of these structures only hold if they're properly maintained. Commingling personal and business funds, failing to adhere to formalities or not keeping documentation can cause courts to 'pierce the corporate veil,' effectively eliminating your protections. Regular compliance reviews are essential. Asset Protection Trusts: The Next Line Of Defense For business owners with significant assets or long-term exposure, domestic asset protection trusts (DAPTs) or offshore trusts can serve as a second firewall. These legal structures allow individuals to transfer assets into a trust—out of personal ownership—while still retaining some benefits, such as investment control or income. Once assets are placed in a properly drafted trust, they are generally shielded from future creditors and litigation claims. DAPTs are currently offered in a number of states, including those known for strong trust laws, like Nevada, South Dakota and Delaware, though the level of protection may vary depending on the settlor's residency. Offshore trusts in various jurisdictions are known for providing strong asset protection benefits through established case law and high barriers to foreign judgments. That said, timing matters. These tools are designed to protect against future threats, not existing threats. Transferring assets into a trust once litigation has begun or is imminent can be viewed as fraudulent conveyance. Business owners should explore these options early, ideally as part of their foundational planning. Building A Multilayered Strategy The most effective risk management strategies don't rely on a single solution. They integrate multiple tools—legal structures, insurance coverage, trust vehicles and operational safeguards—into a coherent plan. For instance, pairing a well-structured LLC with an umbrella insurance policy and a DAPT can provide redundancy if one line of defense fails. Clear documentation, consistent compliance and proactive planning are what distinguish protected businesses from vulnerable ones. Just as a company invests in cybersecurity or quality control, legal risk should be addressed with the same level of attention and investment. It's not just about avoiding disaster; it's about creating long-term resilience. In today's increasingly litigious environment, insurance alone is no longer enough to protect business owners. While it plays a vital role, it's only one piece of a broader risk management puzzle. Legal structures like LLCs and asset protection trusts can offer a durable, proactive layer of protection that insurance simply cannot. A sound legal structure isn't just a shield; it's a strategic foundation. Business owners who take proactive steps now to diversify their legal defenses can operate with more confidence, knowing their assets are protected no matter what challenges arise. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Zawya
04-08-2025
- Business
- Zawya
Company registrations in Jordan increased by 39% since 2019
AMMAN — Minister of Industry, Trade, and Supply Yarub Qudah said on Sunday that the number of companies registered in Jordan during the first seven months of 2025 increased by 17 per cent compared with the same period in 2024, and by 39 per cent compared with 2019. According to statistical data from the Companies Control Department, a total of 4,224 companies were registered in the first seven months of this year, with a combined capital exceeding JD 287 million. Qudah noted that using 2019 as a baseline underscores a sustained upward trend in company registrations, despite the economic challenges posed by the COVID-19 pandemic, the Jordan News Agency, Petra, reported. Limited liability companies (LLCs) represented the largest share of new registrations, with 3,021 companies accounting for 71.5 per cent of the total and combined capital surpassing JD 84 million. Meanwhile, private shareholding companies led in terms of capital investment, with a total exceeding JD 155 million. The minister also highlighted a 'significant' decline in company closures and dissolutions, which dropped by 39 per cent compared with the same period last year and by 78 per cent relative to 2019. A total of 651 companies closed during the reporting period, down from 1,073 in 2024 and 2,985 in 2019. Additionally, approximately 3,000 companies regularised their status as part of ongoing efforts by the Companies Control Department to address inactive firms. Qudah pointed to a surge in digital services, with 385,224 electronic transactions completed in the first seven months of 2025, an 81 per cent increase from 212,576 transactions during the same period last year. Electronic payments also rose by 35 per cent, reaching JD 11.1 million, up from JD 8.2 million in 2024. The majority of newly registered companies were concentrated in sectors such as import/export, marketing services, management consulting, food services, real estate and housing, information technology, brokerage, trade, packaging, and logistics, Petra reported. The minister emphasised that the growth in company registrations reflects Jordan's increasing investment appeal, driven by the Investment Environment Law, streamlined business procedures, and the country's political stability and security. He also credited the strength of the banking sector and the support provided to investors by relevant institutions. Qudah added that these figures demonstrate the resilience of the Jordanian economy in the face of regional and global geopolitical challenges. He also said that the Economic Modernisation Vision and its executive programme include numerous investment-oriented targets, supported by initiatives to encourage investment, simplify procedures, and accelerate processing times. Most company registration steps are now fully automated, with investors required to visit the department only to sign final documents, he added. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
Yahoo
22-07-2025
- Business
- Yahoo
Airbnb ‘take over' now driving up Atlanta homeowners' costs — here's why insurance may be their next headache
When you think about what it might mean to live next door to an Airbnb, you might imagine lots of noise, a constant stream of strangers coming and going, and general chaos. But one thing you may not anticipate is the cost of your HOA fees rising. Residents of a downtown Atlanta condo building have been complaining about an influx of Airbnb renters since 2021. "The weed, the smoking, the drugs," resident Nicky Buggs told Channel 2 Action News (WSB-TV) about her concerns. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it But, those are not the only issues. Since Airbnbs took over the building, residents say they have seen their homeowners association (HOA) fees and utility bills increase. And understandably, they're not happy about it. The hidden cost of living among Airbnbs Living among Airbnbs is as unpleasant for these Atlanta residents as you might assume. 'I see females running up and down the halls with no clothes on,' resident Zeda Stanley Sartor told Channel 2 Action News. Since limited liability companies (LLCs) were reported to have turned a large number of units in the building into Airbnbs, there have been frequent parties and lots of noise. But residents' frustrations go beyond that. Not only have their HOA fees increased, but they say the floors with Airbnbs are the ones being prioritized for upgrades, while non-Airbnb floors are being deprioritized. That's not surprising since, at this point, residents say Airbnb owners control the HOA board. The HOA board told Channel 2 Action News that eventually, all floors in the building will get updated, acknowledging that renovations are sorely needed. 'We cannot do them all at once. It's a 21-floor building, can't be done,' board member Marsha DeQuiors said. But, condo owners aren't thrilled to suddenly see their HOA fees rising after staying the same since 2018. They're also not thrilled that since Airbnbs have moved in, their water bills have also risen — with leaks also becoming more of a problem. "We even looked at like, OK let's just meter each unit and make everybody responsible for their own water, and the building's not designed for that," board member Jamey Waters told Channel 2 Action News. Residents say they complained to state and local leaders, who pledged to place limits on Airbnbs. But, when Channel 2 Action News combed through records, it learned that just 11 of the dozens of units being used as Airbnbs had the required licenses to serve as short-term rentals. 'We can do some research on that,' DeQuiors responded when asked about that. The HOA plans to put cameras in hallways to keep track of what's going on in the building in hopes to stave off problems from Airbnb tenants. But, the board says that HOA fees must keep rising to keep the building running. Channel 2 Action News reached out to Atlanta City Council for an update on the Airbnb limits they've been asked to consider. Reporters were told that one ordinance was recently introduced, while another was still under consideration. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. The risk of Airbnbs Having Airbnbs take over a condo building is more than just a hassle for the people who live there. Not only can it lead to increased utility bills, but it could also lead to homeowners insurance premium hikes. There's inherent risk for insurers because short-term guests may be more likely to cause damage than residents. It's in the best interest of residents, for example, to maintain a smoke-free environment if the building's rules dictate that. There's little to stop an Airbnb tenant, who's staying for just two nights, to light up a cigarette — and worst case scenario, for that to start a fire. As such, the addition of Airbnbs could cause a building's insurance rates to rise — that is, if policies aren't canceled altogether. Provider Harris Insurance explains that short-term rentals can affect the availability of insurers willing to cover a given building, since insurers tend to view these arrangements as higher risk. It's also important to remember that homeowners policies don't just cover property damage. They also include liability coverage for incidents where residents or guests are injured on site. All it takes is for one Airbnb guest to get out of hand before someone gets hurt, or a series of people get hurt, costing insurers money. That's not something they want, so the easier route may be to cancel policies if hiking up premiums doesn't suffice. While it's easy to see the appeal of renting out condos on a short-term basis through platforms like Airbnb, the reality is that it can introduce a world of financial risk — both for the condo owners and the neighbors who live with a stream of revolving guests. What to read next Robert Kiyosaki warns of 'massive unemployment' in the US due to the 'biggest change' in history — and says this 1 group of 'smart' Americans will get hit extra hard. Are you one of them? How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
