Hold all your intangible assets such as trademarks, patent rights, domain names, web sites, company name, trade name, trade secrets, etc. in an LLC. . Never lose track of them. Renew them when it’s time. Identify each of them and assign them a value. License them to your operating company.
By quietly transferring trademarks, patent rights and other intangible assets to offshore or out-of-state companies, global businesses can cut their tax bills dramatically.
Most privately owned businesses don’t even know what intangible assets they own. If you ask them, they will inevitably leave some out. Every business should inventory all their intellectual assets. if they aren’t documented, document them. Assign a market value to them.
Hold all your physical assets such as building, cars, equipment, inventory in a different LLC. Lease them or sell them to you operating company whenever that’s necessary. Like the first LLC, that LLC will never be allowed to do anything that will get it sued. But if your operating company gets sued, all your assets will be safe.
Consider this possibility. Your operating company gets sued and you lose a multi-million dollar lawsuit. The next day, you close down that company and incorporate another operating company with a generic name. Then you license all the intangible assets to them, including the business name and start conducting business like nothing happened.
Because, believe it or not, nothing did.
The best business structure for the chaotic, tumultuous 21st Century is a combination of multiple companies, each serving a particular purpose. Intangible assets, such as patents, copyrights, trade secrets, digital properties & web domains, should be put in an a single purpose LLC where they’ll be safe from lawsuits, and licensed to the operating company.
We protect your business and your vital business assets through business restructuring and intellectual property rights. This approach has the ability to preserve your business and all its vital assets through serious threats to survival.
“Today, President Obama signed the Defend Trade Secrets Act of 2016 (“DTSA”) into law, bringing trade secrets alongside trademarks, copyrights and patents as intellectual property rights protected under federal law.” May 23, 2016.
A client tested this in a court of law, and it works.