Businesses are risky. They can be susceptible to legal lawsuits, complaints, and claims. Therefore, a business owner must always be one step ahead and plan for unexpected pitfalls to protect their business and assets. In order to protect a business and assets from lawsuits, creditors, and claims, a secure asset protection plan should be developed with the assistance of a knowledgeable asset protection attorney. Without a reliable asset protection plan, a business or company can risk substantial loss of business and personal assets.
The Different Types Of Assets
Assets are resources that are owned and controlled by a business. The purpose of assets is to generate economic and financial benefits. They are the channel that prompts and sustains production and growth. There are many types of assets, and each can be categorized in various ways. Keeping track of a business’s assets is essential to the success of a business. In order to protect your business, it is wise to take inventory of all of your assets. A qualified asset protection attorney who counsels clients in Tustin, California, can help you organize and manage your assets to ensure that you, your business and your assets are well protected.
Business assets can be any resource that generates cash flow as well as receivables. They can be current, noncurrent, tangible, intangible, operating, and nonoperating. Some assets can hold equity, appreciate, and depreciate. Some can also be written off when tax season approaches. To better understand assets and asset protection, contact a knowledgeable asset protection attorney for more information and a detailed assessment.
Common examples of assets include:
- Cash and cash equivalents (checking and savings accounts)
- Investments and stocks
- Certificates of Deposit
- Marketable securities
- Accounts receivable
- Real estate
- Office supplies
- Intellectual property
Determining the value and type of assets your business possesses is vital. By knowing the value of all of your assets, you can make business decisions confidently. For instance, in the event that you wish to sell your assets, it will make the transaction process go more smoothly. If you do wish to sell an asset, it is advised to consult with an asset protection attorney, especially if it is considered a significant asset, such as real estate.
Current And Noncurrent Assets
Business assets typically fall under one of two classifications: current assets or non-current assets. Current assets are cash assets that are normally obtained within a year. Examples of current assets are inventory, receivables, goods, services, and debts owed by another party. Even though these assets hold value for a short period of time, they are still valuable to the daily operation of a business.
Longer-term assets are classified as noncurrent assets. These assets are less liquid than current assets. However, noncurrent assets hold value for a longer period of time. In other words, they hold value for more than one year since the majority of businesses do not intend to sell or convert noncurrent assets. Examples of noncurrent assets include buildings, real estate, land, machinery, equipment, and furniture.
Tangible And Intangible Assets
Like the terms imply, tangible and intangible assets refer to assets that are either physical or non-physical in nature. For instance, tangible assets can be buildings, vehicles, land, cash, and investments. These items can be physically held or touched. On the other hand, intangible assets are assets that cannot be touched, such as copyrights, trade secrets, and other kinds of intellectual property.
To gain a detailed evaluation of your business assets, consider contacting an experienced asset protection attorney in Tustin, California.
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A well-drafted asset protection plan by an asset protection attorney can help prevent creditors and other entities from claiming or going after your business and personal assets. At Matthews Law Firm, Inc., we help protect our clients’ business and personal assets by employing secure and reliable legal strategies, such as asset protection plans and other measures.