Protect Vital Business Assets
A business is a money making venture. A company is a tool for conducting your business. Tools are disposable when their usefulness has come to an end. Never fall in love with a tool.
Don’t confuse your business with your company. A business is valuable as long as it makes money. A company is valuable until it loses its usefulness. When it’s usefulness comes to an end, throw it away. Every operating company should be a disposable shell. If it becomes more than that, it severely limits your options. It becomes a lead weight dragging you down.
If your operating company has become a lead weight, spin off operations. Don’t expose your intellectual assets to lawsuits. A business lasts as long as it makes money. Companies last until their utility ends. Don’t confuse them. The best Corporate restructures keep your valuable assets out of your operating companies to protect them from lawsuits. Brand your business concept, not your companies.
Identify every valuable intellectual asset & reduce them to copyrights, trademarks, patents, trade secrets, etc. Move them to a non-operating company & license them to an operating company in return for royalties. This will protect vital business assets and can save taxes.
- Trade secrets
- Web sites
- Customer database
- Social media accounts
The Act that made it all possible.
“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.