To provide cash flow and investment for growth, a business owner will often reinvest earnings in the company. These retained earnings comprise one of the assets that would be available to creditors of the company. Various asset-protection strategies can be used to protect such assets. For example, a holding company can be set up to own more than 10% of the shares of the operating company. The holding company can receive dividends without having to pay any additional tax and can then lend to the operating company as a secured creditor. The retained earnings can be moved to the holding company, out of the reach of the operating company’s creditors. Asset-protection strategies should be considered as soon as the operating company consistently earns profit that is being reinvested in the business it operates.