Legal Question in Wills and Trusts in California

Re: How to protect my personal properties from my business?

If you can't find a bank that will eliminate the personal guarantee, consider some sort of asset protection trust for the assets you may want to protect. It's tricky however because the transfer can't render you technically insolvent, otherwise you run afoul of the fraudulent conveyance statute which allows creditors to avoid the transfer. In order to counsel you properly one needs to know the complete details of all your holdings and their values to see if it will work. They work in some instances but be careful.

Re: How to protect my personal properties from my business?

The fact that you are a corporation will protect you from creditors in general which is why the bank wants you to put up personal assets. You need to make a decision on how bad you want the line of credit from that bank. If you sign the personal guarantee you will still be protected from creditors in general but not the bank. What some people do is go ahead and sign the guarantee if the must have the line of credit and as soon as your corporation is successful enough to get its own credit switch banks.