Operating a business as a sole proprietor or as a general partnership is generally not a good practice for most businesses. Using a corporation (Inc.) or a company (LLC) provides personal liability protection to the owners if they follow certain procedures that include:
There are asset protection features in Florida that are not available in many states. This month we will discuss your homestead. Your home is truly your castle in Florida and your homestead is protected from all third party creditors under Article X, Section 4 of the Florida Constitution which exempts your homestead property from levy and execution by judgment creditors. This protection applies to traditional homes, Condominiums, manufactured homes, mobile homes and even boats if used as the person's primary residence. The Constitution defines homestead as one's principal place of residence up to one-half acre within a municipality and up to 160 contiguous acres in any county in Florida. Also, upon the death of the owner, the protection is extended to beneficiaries who are related by blood to the decedent.