Luisa is concerned about risks and liabilities involved with business ownership. What actions can she take to BEST protect her personal property against the financial obligations of her business? (1 point) Responses Register the business name; patent the logo Register the business name; patent the logo Establish an IRA; set up automatic withdrawals Establish an IRA; set up automatic withdrawals Seek legal counsel; choose the right legal structure Seek legal counsel; choose the right legal structure Hire an accountant; enroll in online banking
Seek legal counsel; choose the right legal structure
The BEST action Luisa can take to protect her personal property against the financial obligations of her business is to seek legal counsel and choose the right legal structure.
To best protect her personal property against the financial obligations of her business, Luisa can take the following actions:
1. Seek legal counsel: Consulting with a lawyer who specializes in business law can help Luisa understand the different legal structures available for her business. They can guide her on selecting the most appropriate structure that provides personal liability protection, such as forming a limited liability company (LLC) or a corporation.
2. Register the business name: By properly registering her business name with the appropriate government agency, Luisa can establish and protect her brand identity. This can prevent others from using a similar name and potentially causing confusion or diluting her brand.
3. Patent the logo: If Luisa has a unique logo or design that represents her business, she can consider seeking a patent or trademark protection for it. This will provide legal recourse in case of any infringement by other businesses.
4. Establish an individual retirement account (IRA): By setting up an IRA, Luisa can separate her personal and business finances, thereby safeguarding her personal assets from any business-related debts or liabilities. Contributions to retirement accounts are also tax-advantaged, providing additional financial benefits.
5. Set up automatic withdrawals: To ensure regular savings and protect personal assets, Luisa can establish automatic withdrawals from her business profits into her personal savings or investment accounts. This way, she can build a financial cushion and protect her personal finances.
It's worth noting that hiring an accountant and enrolling in online banking are also essential business practices, but they may not directly protect personal property against business liabilities. Nonetheless, proper financial management can help maintain accurate records and ensure compliance with tax and financial reporting obligations, which indirectly benefit personal asset protection.