Luisa is concerned about risks and liabilities involved with business ownership. What actions can she take to BEST protect her personal property against the financial obligations of her business?

Question

A. Register the business name; patent the logo
B. Establish an IRA; set up automatic withdrawals
C. seek legal counsel; choose the right legal structure
D. Hire an accountant; enroll in online banking

Answer 1

The best action Luisa can take to protect her personal property against the financial obligations of her business is:

C. Seek legal counsel; choose the right legal structure

Choosing the right legal structure (such as forming an LLC or corporation) can provide liability protection, meaning that her personal assets are generally protected from the business's debts and liabilities. Consulting with legal counsel can help her understand the options available and ensure that she is adequately protected.