Legal Question in Business Law in Colorado

How to create a holding company for assets

We own a home and 2 small home based businesses that have done quite well in the past. We want to protect our assets and have been thinking about putting the assets into the name of our main company so that if someone decided to file a claim against one of the small businesses, they could only attach the assets of that particular business. Is this possible? If not, what do you suggest?


Asked on 11/18/08, 1:18 pm

1 Answer from Attorneys
Mark Cohen The Cohen Law Group, A Professional Corporation

Re: How to create a holding company for assets

Each business should be incorporated or be an LLC. Assets of each business should be separate. Title to your home should not be in the name of any of the businesses, in my opinion. Additionally, you need to make sure that you treat them like separate businesses by having separate bank accounts, etc. The words "LLC" or "INC" should be on your cards and letterhead etc so people can't claim they did not know you were doing business as an LLC or corporation. Finally, if you use standard contracts for any of your businesses, those should be reviewed to make sure they are giving you maximum protection from potential liability.

Mark Cohen

www.cohenslaw.com

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Answered on 11/18/08, 1:28 pm


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