What is “business planning”?

First things first, when you think “business planning” don’t think of a “business plan”. The terms, despite sounding and appearing nearly identical, are not synonyms. A business plan is a document. It lays out your company’s objectives and the plan of how it will go about achieving those objectives. It’s a proscriptive roadmap. By contrast, business planning is the act of ensuring that your business assets are protected against civil money judgments, that they’re handled and/or distributed according to your wishes when you’re no longer able to do so (e.g., upon your death or incapacitation), and that your tax liability is mitigated to the maximum extent permitted by law. In summary, a business plan is to business planning what an apple is to apple.com.

Who needs business planning?

• If you’re serious about opening up a business, and doing it right, then you need business planning advice.
• If you’re concerned about protecting your assets against lawsuits (frivolous or otherwise), you need business planning advice.
• If you have a spouse or children or both, and you want to make sure they’re protected against lawsuits to your business, you need business planning advice.
• If you want to make sure your family has the means necessary to properly sell or continue to run your business the day you can no longer do so because of death or incapacity, you need business planning advice.

Do you need an attorney for business planning?

The short answer: Yes. Unlike the commonly held views on estate planning (which are incorrect, by the way – see what is “estate planning”.

Can you DIY business planning?

Despite the risk of beating a dead horse, here, no. No, you can’t. Actually, let me be more specific: Yes, you can, but you shouldn’t.

Can’t you just incorporate online, using a turnkey platform?

Incorporating is part of what, but it’s not all that, business planning is about. As the ole idiom goes, “The whole is greater than the sum of its parts.” If I fill a cup with ocean water and bring it to you, have you gone to the beach? No. Likewise, just incorporating is not business planning. Part of your business planning strategy may include incorporating (especially for a new venture), but that’s just one aspect of it. It’s not the totality of the strategy itself.

What does business planning have to do with asset protection?

Unlike estate planning, everything! Business planning is all about asset protection and a whole lot more. It contemplates tax mitigation and avoidance, estate planning, and asset protection. It’s got a lot of moving parts, and there is no way that a properly devised business planning strategy can be accomplished without the right professionals by your side. If your business is not worth the cost of consulting with an attorney, then you’re probably too green to be starting a business in the first place. Take that with a grain of salt. It’s just an opinion cultivated over 20 years of business and legal experience. To be clear, you don’t need to take the advice of your attorney. However, you should at least hear him out, so you have a better lay of the land before you.