Key person insurance, also called key man insurance, can be thought of as a hybrid between business insurance and life insurance. Companies can take out this type of insurance on the lives of certain employees to cover the risk of losing “key” workers. The company pays the insurance premium, and if the covered employee dies, the business collects the death benefit. Key person insurance can also be structured as a disability policy if the employee becomes disabled. Investors and lenders may require a key person policy to provide for business continuity. Key person insurance can be used in partnership buyouts as well.

The first step in safeguarding your personal assets from your business liabilities is choosing a business structure that limits personal liability. Corporations, including S corps and C corps, as well as limited liability companies (LLCs) and limited partnerships, provide protection for their owners’ personal assets. When a creditor goes after these types of entities for payment of a debt or lawsuit judgment, typically only business assets may be pursued. This is not true for sole proprietorships and general partnerships. The owners of these business types can be held personally liable if the business owes money. 

Family-owned businesses are common in the United States. The term “mom-and-pop” business is not always meant literally, but there are approximately 1.5 million businesses run by married couples nationwide. Here are some important considerations for your family business.

It has been a tough couple of years for many small businesses, but, as the adage goes, what doesn’t kill you makes you stronger.

Consider taxes, liability, privacy and more when planning to have a limited liability company hold your real estate.

Tax benefits help donors give to charities in 2021. Deductions up to $600 available for “non-itemizers.”

Investing in a small business can be a great way to diversify your assets and keep your money in your local community. This potential win-win investment can position the business for success and position you for a nice payoff. Before you invest in any business, though, you should first learn as much as possible about it by engaging in a rigorous due diligence process.