Blog: Do not keep all eggs in one basket
Business activities always contain some risk. Business risk cannot be eliminated, but it can be reduced a lot for example by creating well-designed company structure.
It is possible to establish a separate legal entity to keep the most valuable assets of the business apart from risky projects. It may be reasonable to keep different activities, contracts or trade marks in different companies as a primary defence against malicious attack.
The annual cost of accounting and administrative services of a special purpose entity is probably much smaller than avoided risk.
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