Hi. This is Lee Phillips. I’m an attorney. I want to talk to you
about charging orders for two seconds. Your attorneys probably
never talk to you about this type of
asset protection. In a crowd, I ask
people, and I’ll ask who knows about
charging orders and I get almost nobody
that raises their hand. When you go in and
talk to your attorney about setting up a
business, the discussion is going to be we’re going to
protect you from what happens in the corporation, or the LLC. That’s the corporate shield. Nothing’s ever said about
what happens to the company if you, the owner,
get in trouble. And that’s a big issue. I’ve seen more people these last
few years lose their company because they got in
trouble personally than I have seen them be in
trouble because of something that happens in the company. How do you get in
trouble personally that would threaten your company? Well, the big one is if you
get sick or you get divorced. 56% of all bankruptcies
are a result of somebody in the
family just getting sick. So you don’t have to hit the
kid in the crosswalk on the way to church on Sunday. That’s not a business problem. That’s personal problem. You get sued, you
declare bankruptcy. The question is, do
you lose your business? Do you lose the assets
in your company? And that may be real estate
that you’ve invested in or maybe the machinery at your
shop or it’s maybe the equipment at your doctor’s
office or whatever it is. The question is, are you
going to lose those assets because you’re in
trouble personally? If you have a Limited
Liability Company, an LLC, or a limited partnership,
then the answer is no if you’ve done it right. Because they have an asset
protection facet to them that corporations don’t have. The corporation is set up
to protect you from what happens in the company. The LLCs and the
limited partnerships have another asset protection
facet that protects the company assets from what happens
to you, and that’s called the charging order.