Do I really need business asset protection?
If you’re a business owner, professional, or high net-worth individual, this is one of the most important financial questions you can ask:
“Do I need to protect my assets in case something goes wrong?”
The short answer: yes. In today’s world, even the most cautious business operators can find themselves facing legal or financial risk. That’s why asset protection isn’t just for big corporations—it’s essential for any business owner who wants to safeguard what they’ve worked hard to build.
Why is asset protection so important?
Australia is seeing a rise in litigation, and unfortunately, business owners are particularly vulnerable. Even one unexpected incident—like a legal claim from a customer, employee, or supplier—can put your personal assets at risk.
This means that without the right structure in place, you could lose your savings, your investments, and even your family home.
And here’s the kicker: it doesn’t have to be your fault. Sometimes things go wrong due to circumstances outside your control.
What can I do to protect myself?
At McMillans, we recommend a multi-layered approach to asset protection:
Start with a full risk review
Understand where you’re vulnerable—before something goes wrong.
Implement a risk management plan
Put practical measures in place to minimise exposure.
Ensure you’re adequately insured
Public liability, professional indemnity, and income protection are all worth reviewing.
Structure your business and assets wisely
And this is where it gets powerful.
How does business structuring help protect assets?
The way you own and separate your personal and business assets can make all the difference. Here’s an example of a common structure used to protect assets:
A Trading Company runs the business and carries the operational risk.
A Holding Trust or Company owns valuable assets like property, plant, equipment, and intellectual property.
A Spouse or another family member (who is not a company director) holds the family home or personal investments.
If the business is sued, the assets are protected because they are legally held outside the at-risk trading entity. You still control and benefit from these assets, but they’re far harder for creditors to access.
An example in practice
Imagine you’re sued by a disgruntled employee or a customer over a service issue. If your personal and business assets are tied together, you could lose everything.
But if your assets are held in separate, protected entities, like a family trust or through your spouse, they are shielded from that legal action. That’s the power of smart structuring.
When should I put asset protection in place?
Before you need it. Once a legal threat or financial issue arises, it’s often too late to restructure or shield your assets. Proactive planning is key.
Let’s build a plan that protects what matters
At McMillans, we’ll:
Review your current business and personal asset structure
Help you understand your exposure to risk
Work with your solicitor (if needed) to implement effective protection strategies
Ensure your structure is also tax-effective and supports your long-term goals
Protect your hard-earned wealth—before it's at risk
If you're running a business or building wealth, don’t wait for a problem to arise. Talk to our experienced team about business asset protection today.