Your business may have many different types of assets. Anything of value, such as cash, accounts receivable, inventory, equipment and real estate, constitutes an asset. Have you thought about what would happen to your assets if your company were to experience financial problems?

When it comes to protecting your personal assets, your best bet is to incorporate. Simply stated, incorporation keeps your business obligations separate from your personal ones. So, financial obligationsor even lawsuits shift from the business owner to the business itself. This is the first way to shield some if not all of your personal property. An attorney can advise you on the proper form of incorporation for your business, including how to elect officers and file the necessary paperwork.

Once your corporation is established, it may also make sense to set up a tax-qualified pension or profit-sharing plan. In most states, those funds will be protected from your creditors or the corporation's creditors. (Divorce settlements may be an exception, however.)

Having the right insurance is another essential for protecting assets. It reduces the risk of loss and helps keep your business running after a disaster. Some types of insurance, such as workers' compensation, are required by law, whereas others may be required by your landlord or bank.

Some typical forms of insurance for a small business are:

1. General liability. This insurance pays for claims in the event that someone other than you or your employees is injured on your property and elects to sue.

2. Errors and omissions. Lawyers and consultants are the most likely to need this form of insurance. It protects you if you are sued because your advice was either damaging or incomplete.

3. Business interruption. A fire or other disaster could shut your business down indefinitely and even, perhaps, to close altogether. This insurance pays you back approximately what your business would have earned were it operating normally.

4. Key man. If you or one of your senior managers were to die, key man insurance (sometimes called 'key personal' would keep the company in business.

5. Vehicle. Most states require liability coverage on all business vehicles. Employees who will be driving the company's vehicles should be included on the policy. If you are using your own vehicle for business, contact your insurance company to make sure your business use of the vehicle is also covered by the policy.

Two types of experts can help ensure you have the right types of insurance for your business: a property and casualty insurance agent and an agent specializing in health and life insurance.