Monday, September 1, 2014

Why do Americans and Canadians celebrate Labor Day? - Kenneth C. Davis



In the United States and Canada, the first Monday of September is a federal holiday, Labor Day. Originally celebrated in New York City's Union Square in 1882, Labor Day was organized by unions as a rare day of rest for the overworked during the Industrial Revolution. Kenneth C. Davis illustrates the history of Labor Day from Union Square to today.

 Lesson by Kenneth C. Davis, animation by TED-Ed.

Sunday, August 31, 2014

Living Trust Definition - What is a Living Trust?

The best living trust definition is a written legal document which substitutes for a will as your primary estate planning vehicle. When you have a trust you transfer your assets such as your home, financial accounts and personal property to the trust. In addition you change the beneficiary or contingent beneficiary of retirement accounts and life insurance to the trust. These assets are then administered for your benefit during your lifetime, and either continue to be held or transferred to your beneficiaries when you die.

The creator, also called the grantor, of the trust usually names him or herself as the initial trustee in charge of managing the assets. This allows the grantor to remain in control of the assets during his or her lifetime. For all practical purposes under this living trust definition, nothing changes in the way the grantor manages or controls the assets after they are put in trust. The only difference is the named owner.

A successor trustee is named in the document, usually a family member or friend but sometimes an institution such as a bank or trust company. This successor trustee then will manage the trust assets for benefit of the grantor if the grantor becomes disabled and for the contingent beneficiaries after the grantor dies.

This living trust definition is for the revocable living trust. It is also sometimes referred to as a revocable inter vivos or a grantor trust. It may be revoked or amended at any time by the grantors as long as they are still competent.


Robert Olson is the lead attorney at DIY Lawyer [http://www.diylawyer.net]. A website dedicated to helping people do their own legal work including drafting a Living Trust. They offer an e-book with a money back guarantee titled the Living Trust Annotated. This book teaches you to draft your own Living Trust for a fraction of what you would pay an attorney. With the purchase of the e-book you also receive a free half hour phone consultation with a DIY Lawyer to answer your questions about the book. You can read about it at DIY Lawyer's Living Trust Annotated [http://www.diylawyer.net/Revocable-Living-Trust-Annotated-EB.html].
Article Source: http://EzineArticles.com/?expert=Robert_Olson

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Saturday, August 30, 2014

The Advantages of Incorporation

It is a universal fact that persistent hard work and some timely luck is needed to be successful in any business venture. However, when it comes to forming a corporate entity for your business, a little homework is all that is required to help make an informed decision which could lead to the continued success of your business.

While it is correct for business owners to give premeditated thought as to their venture's location, customer service, human resources and other management issues, it is equally important that the owner consider the corporate structure of the business as well.

Many business owners don't consider this, but the corporate structure that is chosen can often times be the difference between the venture's success or failure, especially in today's highly competitive and litigious marketplace. Most often, entrepreneurs select the corporation as their preferred entity choice, which encompasses several unique benefits.

Incorporating, while definitely not for everybody, offers several distinct and money-saving advantages over other types of legal entities. Here are eight advantages of incorporation:

1. Protection of Personal Assets
If you operate as a sole proprietor or partnership, there is virtually unlimited personal liability for business debts or lawsuits. In other words, should you go out of business or be a defendant in a lawsuit, your personal assets such as homes, jewelry, vehicles, savings, etc. are subject to seizure. This is generally NOT the case of incorporation. When you incorporate you are only responsible for your initial investment in the corporation; as such, this limited liability feature of a corporation, while not a guarantee, is DEFINITELY one of the most attractive reasons of incorporation.

2. Transferable Ownership
Corporations are generally much easier to sell and are usually more attractive to buyers than either a sole proprietorship or partnership. The reason for this is because a new buyer will not be personally liable for any wrongful acts committed by the previous owners. For example, if someone buys a sole proprietorship, the new owner can be held personally liable for any mistakes or illegalities on the part of the prior owner... even if the new owner had NOTHING to do with the situation! This is usually NOT the case with a corporation.

3. Taxation
When you incorporate a business, there are numerous tax advantages at your disposal that are virtually impossible to accomplish with other business entities. When a business is incorporated, a separate and distinct legal entity is created. Because of this, there are various transactions that can be structured within the corporate parameters of the business that will save big money on taxes. For instance, if you own a building, you can rent office facilities to your corporation and claim depreciation and other deductions for it. Your corporation can then claim the rental expense. You are prohibited from doing this if you are a sole proprietor or a partner in a partnership.

4. Privacy and Confidentiality
Incorporating your business is a great way to keep your identity and business affairs private and confidential. If you want to start a business, but would like to remain anonymous, forming a corporation is the best way to accomplish this. Moreover, some states such as Nevada offer even more privacy protection for corporations and their shareholders.

5. Easier to Raise Capital
When you're looking to raise money through investment or borrowing, a corporation can actually make finding and getting the money you need easier. If you want to take on investors, you simply sell shares of stock. If you want to borrow, a corporation can add clout when dealing with banks or other lending institutions.

6. Perpetuity
As mentioned in #3, when you incorporate a business, you create a separate and distinct legal entity. This separate and distinct entity (the corporation) will exist in perpetuity irrespective of what happens to the shareholders, directors, or officers. This is NOT the case with sole proprietorships, partnerships or even limited liability companies. For example, if an owner, partner, or member dies, the business AUTOMATICALLY ends or gets wrapped up in the legal dissolution process. Corporations, on the other hand, exist forever.

7. Retirement funds
Retirement funds and qualified retirement plans, such as a 401k, may be established more easily.

8. Credit Rating
Regardless of an owner's personal credit scores, a corporation can acquire its own credit rating, and build a separate credit history by applying for and using corporate credit.

Yusoff Allian is a legal expert on the formation of C-corporations, LLCs, and LLPs. To learn more about the advantages of incorporation, visit http://www.ofincorporation.com.
Article Source: http://EzineArticles.com/?expert=Yusoff_Allian

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Friday, August 29, 2014

How to Choose an LLC Registered Agent

It is a must for your LLC to appoint a registered agent. That is because this person is responsible for sending and receiving documents on behalf of your company. And like any person you want to work with during the course of your business, you must choose your agent carefully.

Consider Your Capabilities and Resources

You can be your own LLC registered agent, but it's not advisable unless processing LLC papers is your specialty. Also, avoid choosing agents on the sole basis of fees; as the old saying goes, you get what you pay for. Don't forget to consult with the other LLC members during your search.

Gather Recommendations

Don't know where to start looking? Use your business network and ask for feedback from others who have experience hiring a LLC registered agent. Narrow down your recommendations to those who look like they suit your purposes. You should have three to five prospects on your "to interview" list by the time you're done with this step.

Visit your Agent's Physical Office

LLC registered agents who are worth their salt should have a website where you can learn everything there is to know about them. If you have spare time, though, it wouldn't hurt to pay your prospect a visit. That way, you'll get an idea how your agent operates based on the general "feel" of their office. For example, an agent with a messy, disorganized table is likely to treat business transactions the same way as well.

Ask Questions

Quiz your prospective agent on the process of organizing LLCs. A good one must be able to provide satisfactory answers regarding the theoretical and practical aspects of LLCs. Keep in mind that you'll never know when you'll need your agent's services, so inquire about operating hours and contact information as well.

Make Your Decision

All registered agents have their respective pros and cons. It's up to you to decide what strengths you need from your agent, and what weaknesses you can put up with. You can change your agent if you wish, but you'll have to contend with additional paperwork and fees.

Search for an agent the way employers screen employees: Let the right people know that you're searching, analyze your prospects carefully, and narrow your choices down to those who can gel with your LLC's culture. The steps outlined above are applicable not only for LLC registered agents, but also for other professionals you'll need aboard your boat too.

If you are looking for information on Tennessee LLC registered agent, click on the link. Or you can visit http://www.ezonlinefiling.com/.
Article Source: http://EzineArticles.com/?expert=Pete_Morgan

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Thursday, August 28, 2014

Cover Your Bases With Estate Planning

ESTATE PLANNING

Create a Will

As an original concept of estate planning, creating a will is a part of it. By writing a will, money and property are divided after someone's death. There is a living will, which relates to medical treatment and any procedures that must be adhered to in case the originator becomes extremely or deathly ill. Also, by taking responsibility for communicating--both properly and promptly--creates a more action oriented atmosphere that is destined to be organized, in comparison to no guidance for the future.

Issue Trusts

After someone's death, relatives and loved ones tend to be on end. In some cases, there are certain property rights and awards that must be issued out to these members. That is where a trust sets in. A trust is method of passing down funds to another, after one's death has occurred. There are many forms of a trust in action today; and they vary according to the specific needs of the person granting the initial trust (in most circumstances).

Power of Attorney

During estate planning, assigning a Power of Attorney is important. By addressing this issue, someone is nominated as the head honcho when you are not able. This applies to financial issues and personal matters (i.e. health).

Letter of Instruction

Moreover, a letter of instruction is another important document that must be created and developed. This kind of particular pass-down includes specific directives that your successors must adhere. In summary, a letter of instruction contains contact information (in the event of your death), which pertains to where important information, files, or safes are stored; and details that pertain to financial accounts, in addition to pass-downs about continuing activities.

Good Reasons for Estate Planning

When the responsibilities--of a grantor, etc.--are put into place, the numbers can be big, in relation to financial responsibilities, health decision leader, etc. As a result, governments and certain laws have been put into place, in order to assist families and associates passing things down. Before, without a will or any other lawful documentation, people and tribes had to go by what they were told, and what they had learned, while certain individuals were alive and/or on their deathbeds. Thereafter, conflict could occur because of possible misrepresentation, disbelief, and manipulative factors.

With that said, by attempting to be responsible and producing wills and trusts (estate planning), detrimental misguidance--concerning responsibilities--should be null if any. Ultimately, It is always a good idea to tinker with estate planning; cover your bases, before you are out for the count.

Article Source: http://EzineArticles.com/?expert=Quintin_I_Goynes

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Wednesday, August 27, 2014

Estate Planning Eases Confusion, Financial Worries



What you need to know about estate planning, including why having a will and assigning a power of attorney is crucial.

Tuesday, August 26, 2014

Monday, August 25, 2014

Jeffrey Volosin Discusses The Difference Between LLC And C Corps for Businesses

As being a part of the business world, it is important to understand different terms. Educating oneself on these terms not only helps with learning and understanding business conversation, but lets people know that the businessman (or woman) is serious and truly knowledgeable in the field. The two terms professionals should be able to know are a limited liability company (LLC) and a C corporation. While they are both structures, they both have their different traits and can allow many businessmen and businesswomen know what is most suitable for a business. Both have an indefinite term of life, but LLCs having plenty of distinguishing traits.

A limited liability company (better known as an LLC) is a specific type of business entity that mixes the personal liability protection of a corporation with the tax benefits of a partnership. It is a structure that offers protection to a company's owner. An LLC is best suited for small businesses with very few shareholders.

A limited liability company's taxation is a single taxation, which means the interests of the profit or loss is passed to members who are in the top 39.6% bracket. An LLC has the option to elect to be taxed as a corporation. Only the members own and manage an LLC. It has limited liability. In other words, the liability is not exceeded by the amount invested by members. Meetings for members are not required, but activities should be recorded.

A C corporation is a complete opposite. It is a specific type of business entity that is taxed separate from its owners. It is used for medium and large-sized corporations and owned by its shareholders; this is different from an LLC since LLCs deal with small businesses with a few shareholders. C corporations are managed by officers while LLCs are managed by the members or managing members themselves.

Another trait of C corporations is that it uses a double taxation in lieu of a single taxation that is seen in LLCs. Income is taxed roughly 34% and shareholders pay taxes on profits distributed. The choice of taxation structures are not allowed with C corporations, they must be taxed at a corporate tax rate. Shareholders are required to attend board meetings whereas stated for LLCs, meetings are not required. While these differences may be broad between the two types of corporate structures, knowing the differences allows professionals to make the right assessments for future businesses.

If you are looking for more information on incorporating your small business, please visit http://www.jeffreyvolosin.net to get find out more.
Article Source: http://EzineArticles.com/?expert=Jeffrey_L_Volosin

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Thursday, August 21, 2014

Understanding the Difference Between a Will and a Living Trust

When planning for the future of your children as you get older, there are a few options on how to pass on your assets such as property, life insurance, stocks, etc. The two major ways of stating and distributing your assets after your passing is with a living trust or will. When you hear the words trust fund or wills, it refers to estate planning. Although there are different trusts out there, the main one I will focus on is a living trust.

Will

A will is a document that is created to help distribute assets and properties to a beneficiary after one passes away. With a will, it will be submitted through a probate process, which is a court process. In this process, the courts will validate the will and ensure that all the instructions are followed properly while also repaying any creditors. The downfall to a will is that it becomes public so anyone can see the distribution of your assets to your selected beneficiaries. On top of not having privacy, it could take several months to even years for the court to sort everything out!

Living Trust

A living trust is a legal document that states three parties: Grantor/Trustor, Trustee, and Beneficiaries. The grantor/trustor is the individual or couple who establishes/creates the trust. The trustee is the person nominated to be in control of the trusts assets. In many cases, the trustee is the same as the grantor/trustor. Beneficiaries are those at the receiving end who will benefit from the trust. A trust is beneficial to most people who have property worth $100,000+ and/or those who have large amounts of assets. In certain states, properties at $100,000+ can be subject to legal fees in the probate process. With a living trust, it bypasses the whole probate process and all assets can be immediately accessed by the beneficiaries. As opposed to a will, a living trust is private so it does not go through a probate process, therefore it is NOT a public record. Things that can be listed in a living trust include: stocks, bonds, real estate, life insurance, personal property, etc.

A trust is beneficial for estate planning for those who have large amounts of assets. By establishing a specific living trust known as an A-B Trust, an individual can reduce the amount of taxes paid significantly. For example, in 2012, the current estate tax is $5.12M with a cap at 35% over the $5.12M. In an A-B Trust with a couple passing their assets to their one kid, they would designate half the fund to the surviving spouse and the other half to the kid. The surviving spouse and the kid will then each receive a tax break of $5.12M giving a sheltered total of $10.24M from estate taxes. When the surviving spouse passes, then his/her half is giving to the kid who is then subject to another $5.12M tax break. Unlike a trust, a will however will be only have a tax break of $5.12M.

Conclusion

When comparing the differences of having a last will versus a living trust, it shows that the trust comes out on top. A trust will help to give privacy, immediate access to assets from beneficiaries, AND tax breaks. For those who are near the age of deciding what to pass on to their children or know someone in that situation, help them understand the difference of the two and sway them toward a living trust if feasible!

Read more articles at: http://www.youngandsecure.com
Article Source: http://EzineArticles.com/?expert=Jonathan_R_Wong

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