Is your business protected? Probably not.
On this episode of the Making Bank podcast, Jonathan Feniak discusses which states have the best laws for your business. Jonathan explains how Wyoming, Nevada and in some cases Delaware, have the most protection for you as a business owner. Sometimes, a claim goes after the entrepreneur, not the company, and it can really hurt your assets. Listen to this episode to learn how to prepare and protect yourself.
Listen to Josh and Jonathan discuss the laws of business:
Jonathan’s Background (2:19)
Jonathan gives a brief account of his background, as he earned a JD and MBA. With his experience in wealth management and legal expertise, he helps businesses protect themselves and their assets.
Which States are Great for your Business (4:41)
Jonathan discusses how certain states like Wyoming and Nevada are great for businesses, as their laws focus on protecting the owners. He also compares Delaware, that has laws that protect both business owners and shareholders.
Getting the Right Insurance (6:40)
Giving examples, Jonathan explains the importance of having the right insurance for your business. Not only should you choose the right policy, but it’s also imperative you read through the fine print to make sure all your bases are covered.
He also delves into the details on how certain umbrella policies may or may be right for your field of business, such as real estate.
Piercing the Veil (9:54)
Jonathan relays what can sometimes happen when you are not fully insured in an area, but you have a large claim to settle. He calls this “piercing the veil,” when the claim will go after the owners of the company for the liability. The issue with veil piercing laws is that in most states, they tend to leave a lot up to the judges. He explains how to give yourself, as a business owner, another layer of protection.
He touches on how Wyoming in particular has strict veil piercing laws that protect the businesses against these claims.
Protecting your Privacy (17:31)
Jonathan covers the ways his firm can protect your privacy as an owner, which is key when running a business. He discusses how different states have different laws about how public information can be and emphasizes the importance of privacy as a way to help yourself if a claim comes about.
Jonathan distinguishes the different rates of forming an LLC in different states. He warns those, especially in California, to be cautious of forming an LLC in that state, as the startup and annual fees are unusually high.