Business assets should be owned by the business… not you!

If you have an LLC or you plan on starting one, then make sure you title the business's assets in the name of the LLC. This includes bank accounts, machinery, vehicles, and any real estate that the business might own. There are two reasons that you need to do this. The first is that it's basically a legal formality, and it's required so that you can continue to receive the liability protections that the LLC provides to you. And the second reason is that owning these assets personally would expose you to unnecessary risk. For example, let's say that your business uses a car or a machine. If that car or machine is owned in your name personally and somebody gets injured when you're driving the car or using the machine, then the injured individual is going to go after the owner of the car or the machine. And because you're the owner of the car or the machine, the injured individual is going to sue you personally rather than the LLC. Ultimately, that would defeat the main purpose of the LLC, which is to provide you with personal liability protection.