Small businesses could use a good course or two in partitioning and legal isolation strategies.
The navy partitions its ships so no one torpedo or blas will flood the whole ship.
similarly small businesses should partition their businesses the same way.
Auto shop for example: big liablities all around.
perhaps one entity (a trust of sorts) would own all the tools, another owns all the computers. A third and so on would own the rest of the assets and finally, the owner borrows money against all equipment that is owned free and clear. When you borrow money and live off of it, it isn’t income and the equipment is now encumbered which reduces the possability that a lawyer can check to see what assets are free and clear.
I’m considering “licensing” all my business intellectual property from a “ahem” corporation in NV. Sorry, all my “extra” income is owed to Corp X in another state....and the licensing fees are really really high leaving me with just enough to get by.
IF I was to worry about frivolous lawsuits I might consider some of these strategies...I read about them in a comic book once ;-)
Never can be too careful these days - everyone wants a free lunch.