Thursday, December 13, 2018

Business Laws : Forming an LLC



Forming a LLC, or limited liability company, requires contacting the Small Business Administration to find out what type of licenses and registrations are needed to be filed.

Wednesday, December 12, 2018

The Advantages of Making a Will Which Can Serve As a Catalyst for Preparing It


Like most legal documents, the importance of a will increases with its acceptance amongst authorities. Making a Will is a complete legal procedure and its advantages are many which make the preparation imperative on the part of the owner. But the legal responsibility for making a Will shouldn't be taken in a negative light and procrastinated about. Instead the very advantages of making a Will could be the single greatest catalyst for the preparation of a Will by the owner of the assets. Below are a few of the major advantages of making a Will that could be the catalyst for the owner to prepare it.

Also we would like to state that people rarely find making a Will to be a pleasant task. Preparing a Will is a metaphor for our own mortality which people don't want to face. But as they say- No one is immortal or escapes death and taxes! Who knows? You could compromise with your own mortal end during the preparation and come out with a better view on life.

The advantages of making a Will are:

No dispute between dependents: There can be no chance of any conflict or dispute between the several dependents of the property if a will is already made. The will perfectly sums up what is left to whom and that itself diffuses any chance of conflict plus the division is also ensured by law of the land. Without a Will, inheritance disputes often run into years and decades which are not a viable option.

Lack of ambiguity: A Will is a legal document that clearly states the division of the property and that in itself clearly puts out the lack of ambiguity.

Property Management: The property can now be easily managed or divided according to the directions given in the Will and that leads to a better sense of property management.

Appointment of Executor/Guardian or Trustee: Will often appoints a responsible person as a Executor or a Trustee who acts as the overseer of the property. This also is important when the beneficiary is a minor or of unsound mind and cannot look after the assets.

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

Article Source: http://EzineArticles.com/8554007

Tuesday, December 11, 2018

What is a Financial Power of Attorney?


If you are ever incapacitated, who is going to take care of your finances? Betsy Abramson talks about why preparing these documents in advance is important.


By The People in Fairfield, CA is available to help with document preparation for you to represent yourself in many uncontested legal matters. Learn more here: http://bythepeopleca.com

Monday, December 10, 2018

FAQs - Know More About DUI Record Expungement and Get Your Life Back on Track



Most states in the US allow DUI record expungement. Expunging your DUI arrest or conviction record eliminates all the consequences it has in your life and helps getting your life back on track. To help you in regards to expungement, this article answers some of the most frequently asked questions.
DUI record expungement - Frequently Asked Questions:
1. What does expunging your DUI record mean?
DUI expungement is a legal process through which your DUI arrest or conviction record is completely physically destroyed.
2. Are you eligible for an expungement?
You are eligible to expunge your DUI record:
- if a certain amount of time has passed since your arrest or conviction.
- if you have completed all the terms and conditions of probation.
- if you have no new pending charges.
- if you have paid all the fines, completed jail time, community service, rehab and fulfilled all the conditions imposed by the court.
3. What will you benefit from expungement?
Once you are notified that your DUI records are expunged, you are, thereafter, to be relieved of all the disabilities resulting from your DUI arrest or conviction.
It means you do not have to disclose your conviction or arrest to your prospective private employer or when applying for a home mortgage loan or under any other circumstances.
4. How much does expungement cost?
Hiring an attorney to expunge your DUI records costs around $400 to $4000 depending on many factors like the nature of your charges i.e., misdemeanor or felony, number of charges and experience of your DUI expungement attorney. In addition to this, court and filing fees can cost $100 to $400.
5. Do you need an attorney for expunging your DUI record?
You can expunge your DUI record with or without the help of an attorney. A DUI expungement attorney ensures that your records get expunged on time. So if you can afford an attorney fee you can hire one. Otherwise you must make sure every phase in the expungement process is completed on time and correctly.
6. Will they need your presence at the court?
If you have hired an attorney, he/she will take care of all the matters on your behalf. But if you have not, you must represent yourself in the court.
7. How long does the DUI expungement process take?
If you want to expunge your misdemeanor record, it will take roughly 2 to 6 weeks from the time the application is filed.
Or if you want to expunge your felony record or want to reduce it to a misdemeanor it usually takes 4 to 6 weeks from the time the application is filed.
8. What expungement will not do for you?
Your expunged DUI arrest or conviction can still be used to increase your penalties and punishments if you get another DUI in the future.
Now that you know the answers for some of the most frequently asked questions, so you can take steps to expunge your existing or older DUI conviction and arrest record and get your life back on track.

Article Source: http://EzineArticles.com/4339215

Saturday, December 8, 2018

Advance Directives and Why You Need One


You've probably heard of advance directives, but are unsure of what they actually do and how they can help you. The truth is that these are a great way to plan ahead for your future, but they do require a bit of work upfront first. This is a good thing though, since it will save you time and energy later. It's better to have the work done before you actually need to do it so in a time of emergency everything is already sorted out beforehand.

The first thing to be aware of is the medical power of attorney, also called a healthcare proxy. This person is lawfully able to make medical decisions for you in the event that you are unable to. This includes when you are suffering from dementia and when you are not conscious. This is a big shoe to fit into, so to speak, so it is important that you select someone that you trust completely. Sometimes, you may want to select a backup healthcare proxy in the event that something happens to your original choice for POA. This doesn't happen often, but when it does you will want to be prepared. So having another person you trust on deck allows you to not worry about constantly updating your POA paperwork.

You also need to know that your POA will not be able to make decisions that override your decisions. This is to benefit you, of course. If you were to wake up out of a coma, you would then be able to once again make your own decisions and not have to worry about your POA making a decision that you do not want them to.

Some states do not actually honor other states' advance directives. Some do. So it will require a little research, either on your own or with your attorney, to make sure that if you are moving from New York to California, for example, that your advance directive will hold up under the scrutiny of the legal system. The easiest solution to this problem is to have an advance directive made up for each state that you will be residing in. So if you do move into a California retirement home, make sure that you set up an advance directive as soon as possible once you are a resident there.

A final consideration for the State of California is that if you are in a skilled nursing facility and want to set up an advance directive, you must have a patient advocate sign the paperwork as a witness. Again, this is to protect you and your rights.

Basically, the State of California wants to ensure that the patient is of sound mind and that they are not being taken advantage of. This is why an advocate must sign-they look out for their patients' best interests.

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

Article Source: http://EzineArticles.com/7119338

Friday, December 7, 2018

The Tax Benefits of a Limited Liability Company


A limited liability company, or LLC, is one of the most popular business entities today but also one of the newest. An LLC is unique in that it's a pass-through entity. The IRS does not consider an LLC a legally separate entity in terms of taxation, so all business income, losses, and expenses are "passed through" to individual owners to report on their personal income tax returns.

By default, a single member (or single owner) LLC is taxed as a sole proprietorship. An LLC with more than one member is taxed as a partnership by default. There are many tax advantages (as well as drawbacks) to forming an LLC instead of a corporation.

Flexible Taxation

One of the biggest benefits of forming an LLC is you can choose how you are taxed. This is one of the lesser understood advantages of a limited liability company. When you file your taxes, you can choose to file as a "disregarded entity" and get the default tax treatment or you can choose corporate tax treatment. If you choose the corporate taxation structure, your business will be taxed at a much lower corporate rate on the first $75,000 in income. Keep in mind an LLC's tax rate is completely dependent on the owner's income. If you have higher income, you will likely pay lower tax rates by choosing corporate treatment.

Lease Assets

With a limited liability company, you can lease your personal assets to the company. This means you can run your LLC from your home office and have the LLC leasing the office from you. Doing so means you are creating a business expense that you may be able to write off while improving your personal financial situation. This is a tricky area, however, as the expenses must be legitimate business expenses and you will need a formal lease agreement in place.

No Double Taxation

Corporations are subject to something known as double taxation, which means a corporation first pays taxes at the corporate level then again on income from dividends that are distributed to owners. LLC owners are not subject to double taxation; business income is reported on your personal income tax return and taxed once.

Tax Disadvantages

While there are certainly tax benefits to an LLC, there are drawbacks as well. LLC owners are required to pay taxes on their distributive share of the company's profit, even if they do not receive the distribution because the money stays with the business. Corporate owners are not required to pay taxes on business profits unless the profits are distributed (usually as dividends).

Finally, as an LLC owner, you will also be required to pay self-employment taxes, even if you are a single member LLC. Corporate owners who work as employees of the company, meanwhile, only pay half of this tax amount on their salaries while the corporation pays the rest.


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

Article Source: http://EzineArticles.com/9166249

Thursday, December 6, 2018

By The People FAQs


  • Are BY THE PEOPLE Personnel attorneys? No, we are not attorneys. We are Legal Document Assistants. In California, we are a licensed and bonded profession.

  • What if I need legal advise? You can always consult with an attorney of your choice. We can provide you with a referral for an excellent local attorney who specializes in cases similar to yours if you have questions we cannot answer for you, or your situation is more complicated than our services are meant to help with.

  • Do you have a Notary Public? Yes, whenever we are open we have a Notary Public on staff. If you are a BY THE PEOPLE customer, all Notarizations of your documents are included in our fees. If you have documents not prepared by BY THE PEOPLE, we charge $10.00 per signature you need notarized, in Cash Only. You must sign the document in our presence and provide valid photo identification.

  • Does BY THE PEOPLE handle Criminal Matters? No, we only handle uncontested civil matters. However, if you would like to contact us, we may be able to refer an excellent local attorney to you.

  • I need to have my documents prepared immediately. Do you have Rush or Same-Day document preparation services? Yes, we can prepare certain documents within a few hours, if necessary. Rush and Same-Day services are available for the following documents: Wills, Powers of Attorney, Health Care Directives, Deeds, LLC and Incorporation Articles. A modest Rush Fees will apply to these services.

  • How long will it take to prepare my documents? The documents we prepare at BY THE PEOPLE are typed specifically at your direction. All documents are then rigorously proofed to ensure you receive the highest quality legal documents available anywhere. Most of our documents are prepared and ready for you to sign within one week, depending on your situation. 

For more information please visit http://bythepeopleca.com/

Wednesday, December 5, 2018

Incorporation - Is It Right For My Business?


The process to form your incorporation is relatively easy, and the legal concept of incorporation is recognized all over the world. A Certificate of Incorporation is the evidence of incorporation and registration of the legal entity with the authorities of a particular state or an offshore jurisdiction. A primary advantage of incorporation is the limited liability the corporate entity affords its shareholders, and in many cases, favorable tax treatment. For anyone starting up his or her own business, an understanding of business incorporation is a must before taking that step.

Incorporation is a system of registration which gives a business certain legal advantages in return for accepting specific legal responsibilities and is an option that many businesses each year decide to take advantage of. However, prior to filing with the state, you should have your attorney and accountant advise you as to whether or not incorporation is the right step for your business, both from a legal standpoint and from a tax perspective. If the corporation is a closely held corporation and does business primarily within a single state, local incorporation is usually preferable. Incorporation is a state process, and therefore the process and specific benefits may differ from state to state, as well as registration costs, resident agent fees, etc.

What type of incorporation is best for my business? A "C" Corporation, an "S" Corporation or a Limited Liability Company (LLC)? In addition to those choices, you then need to decide where to incorporate. Not only does each state offer certain benefits, but costs to file and maintain the corporate status are different. Additionally, if your business purpose is rather simple and straightforward, you may be able to use an online incorporation service to incorporate, at substantial savings. Remember, when in doubt, or if any questions or issues need to be addressed, seek professional advice...it usually is cheaper in the long run!

There are certain states that offer important incorporation benefits to the directors and shareholders. You need to make a comparison of these benefits, as well as the filing costs, to determine if incorporation in that state is warranted. Another consideration for incorporation in a state other than where your business is located, is that you may be required to register as a foreign corporation in your resident state. This will usually entail annual filing fees equal to or greater than that for a domestic corporation. Again, prepare a checklist and weigh all benefits as well as additional costs, etc. before the incorporation process begins. Rather than incorporating in another state, you may also benefit by an offshore incorporation. Check it out carefully.


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

Article Source: http://EzineArticles.com/679430

Monday, December 3, 2018

Three Lessons on Durable Powers of Attorney


Durable Powers of attorney are an essential ingredient in a complete estate plan, which allow for continued financial management in the event of incapacity. Under a durable power of attorney, an attorney in fact makes financial decisions on behalf of the principal. The attorney in fact can be given broad and sweeping powers. Conversely, powers granted by a durable power of attorney can be limited to particular assets or powers. Accordingly, the level of control given to the attorney in fact should reflect the particular requirements of the estate as well as the principal's comfort with a broad grant of authority. In this article, the author teaches three lessons on effective execution and implementation of durable powers of attorney.

First Lesson: Why would I Need One Now?

The legality of durable powers of attorney stems from the law of agency. Under agency law principals, an individual with capacity may give an agent powers-to contract, to represent the principal or to revoke or amend a trust, for instance. In the case of a non-durable power, the agency terminates upon the principal's incapacity. Durable powers survive incapacity, but the principal must have capacity at the time of execution in order to effect a valid power. Accordingly, executing a durable power of attorney for financial management should be done prior to incapacity.

Waiting until one becomes unable to coherently express one's wishes with regards to financial management decisions is too late, and a court-appointed conservatorship may become necessary. What about the successor trustee designated in my trust, or the executor of my will? Would they be able to step in? Since the principal does not die at incapacity, only an attorney in fact designated under a properly executed power of attorney may step in to make financial management decisions. A last-minute durable power of attorney executed during incapacity would not survive a court challenge, however expensive or damaging the result.

Second Lesson: Consider making the Power Immediately Effective

Often, unwary estate planners will execute "springing durable powers of attorney," which only become effective upon the incapacity of the principal. Incapacity is determined according to a test set out in the power, such as a determination made by a medical doctor or a court rendered decision. But who wants to go through the expense, difficulty, and uncertainty of initiating a legal procedure to determine incapacity? Isn't one of the goals of estate planning to prevent unnecessary expense and delay? Moreover, doctors frequently hesitate to make determinations of incapacity because of liability they may face.

In most cases, a better strategy would be to execute an immediately effective durable power of attorney, which gives an attorney in fact the power to make decisions on behalf of the principal without any finding of incapacity. Many are fearful of an immediately effective power of attorney, reasoning that no one should be given such power over their financial affairs unless they are totally incompetent. If they have such a lack of trust for the attorney in fact, why are they executing a power of attorney in the first place? One would think that even more trust would be required when the principal is incompetent and has little influence over the attorney in fact. Finally, simple measures can be taken to avoid disasters before incapacity. Consider sealing a copy of the durable power of attorney in an envelope labeled "do not open until my incapacity." In addition to oral instructions, this can help to avoid the scenario of a run-away attorney in fact who uses the power of attorney to access financial accounts before incapacity.

Third Lesson: What powers should the Attorney-in-Fact be given?

The powers given to an attorney in fact depend upon the principal's desires and the particular concerns that stem from the types of assets held. The durable power of attorney should be coordinated with the will, trust and advance health care directive to ensure that they do not contradict each other. Namely, should the attorney in fact have the power to create trusts? To rescind or amend existing trusts? Should the attorney in fact have a power to make gifts to himself or to others? These powers can help ensure that preparation for long term care (medical) or tax planning can take place even after incapacity. Before executing a power of attorney, individuals should be fully informed of the powers that they are granting, and the possible consequences of such sweeping grants of power. In all cases, it's best to consult with an attorney who can advise on specific risks.

Conclusion

Durable Powers of Attorney are one of the five essential documents in estate planning discussed in this article series. Unlike a will or trust, which mostly deals with decisions that are made upon one's death, the durable power of attorney deals with life-time financial management and estate planning questions. Individuals should be aware of the risk in waiting to execute the power of attorney; the hazards of "springing" powers; the range of powers that can be given to the attorney in fact; and the risks associated with a sweeping grant of authority to the attorney in fact. --

This article is intended to provide general information about estate planning strategies and should not be relied upon as a substitute for legal advice from a qualified attorney. Treasury regulations require a disclaimer that to the extent this article concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Article Source: http://EzineArticles.com/expert/John_C._Martin/176675

Article Source: http://EzineArticles.com/2308430

Sunday, December 2, 2018

Defining Legal Terms - By The People



Rene goes over what types of questions they can help answer at By The People. A legal document preparation company.

See more at http://www.bythepeopleca.com

Saturday, December 1, 2018

Legal Questions : How Does a Living Trust Work?



The idea of a living trust is that, while a person is still alive, they transfer their assets into a trust document that administers the assets. Avoid probate through a living trust with help from a certified civil mediator in this free video on law and legal questions.

Friday, November 30, 2018

What is a Trustee?



Learn more about what a Trustee is in this video.

Thursday, November 29, 2018

Who is Entitled to a Copy of a Will?


When a person dies and leaves a will, who gets a copy of that will? Watch this video and learn more about who is entitled to a copy of a will.

Tuesday, November 27, 2018

Probate and Administrative Process, Know Your Rights


Probate is the system in which the court's system's method of processing the estates of a dead person. It is a legal document that enables the administration of the estate of the deceased. It allows for the resolving of claims and distribution of the deceased's will. Any grievances surrounding a deceased person's estate are filed in the probate court also known as the surrogate court. Once probated, the will becomes a legal instrument that can be enforced by the executor.

Administration process

Administration process of an estate on the other hand is the process by which the deceased person's assets are collected, maintained and distributed. An estate administrator sees to the proper administration of the will.

The Probate process

The probate process begins after the death of a person. An interested person files an application to administer the estate; a fiduciary is then appointed who is to administer the estate and at times may be required to pay a bond to safeguard and to insure the estate. Creditors are notified and legal notices published. There may be filed a petition to appoint a personal representative may need to be filed and letters of administration obtained. All these processes must be done in accordance with the limitation clause.

Property that avoids probate

Property that passes to another person contractually upon the death of a person does not enter probate for example a jointly owned property with rights of survivorship. Property held in a revocable or irrevocable trust that was created when the grantor's was still alive does not also enter probate. In most of these cases the property is distributed privately and without many issues thus no court action is required.

What happens in the probate and administrative process?

After a probate case has been filed in court, an inventory is entered and the deceased's property collected. The debts and taxes are paid first then the remaining property distributed to the beneficiaries. The probate and administrative process may be challenged at any time as a whole or part of it. The issues that arise during such hearings include will contests and paternity issues and these have to be solved before the matter is decided.

The need for the appointment of an administrator arises where the deceased left no will, some assets are not disposed of by the will, in cases where there is a will however, the case goes to probate directly. The estate administrators act like will executors but where the will does not state how to distribute of property, they follow the laid down laws.


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

Article Source: http://EzineArticles.com/8407779

Monday, November 26, 2018

3 Positive Points of Starting an LLC


When you start a business you will have to sift through the variety of options that are available to you in terms of running a full scale operation. Even if you're the only person working within the framework of a company, you will still need to file paperwork with your state and city governments, and you will need to have a good plan of action. Sure, you could just go into business and wait for the penalties to pile up and then form a legitimate business, or you could look into the proper way to go about starting an LLC. The latter is far better in many people's views, and will definitely save you headaches later on. Consider the following positive points of starting an LLC.

Multiple Owners or One Owner - Whether you have a great deal of investors that want to be part owners or you are alone in the process you will find that an LLC allows you to run your company with a great deal of freedom. Not only that, you will be able to include others in a management or even ownership capacity later on as long as you have an operation document that will showcase your ideas moving forward.

Liability - The best part of starting an LLC is that you will not be liable for a great variety of issues that will come up. For instance, let's assume that you have a client that is hell bent on suing you, and so they sue the business that you own and you have to go to court. If you file your paperwork properly, and you lose the case, you will only be liable for the money that is held within your business, and nothing else! That means if you own a home, a boat, a car or just about anything that is not part of the business proper, you could stand to lose nothing on a personal level. This is a great thing because you can protect your assets and not worry about what some might do to try and get your money.

Taxes - Dealing with taxes can be quite easy because they flow into personal income taxes in many ways. You will find that you will have to deal with your taxes in a manner that is a bit more simple than starting a larger company or a different option in terms of business. While it's not a matter of not paying your fair share, it's really a matter of ease when tax time comes around.

The above 3 positive points when starting an LLC are just 3 items that many find to be great. There are a number of other integral points to consider and each one seems to make the formation of this type of company a bit better than others. Only you can decide what path your business takes, but when it comes to starting something away from the traditional route of 40 hour work weeks, this is definitely one of the more attractive options. You'll find that it's easier than others, and it can bring amazing profits in time.

Article Source: http://EzineArticles.com/expert/Pete_Morgan/604971

Article Source: http://EzineArticles.com/7437558

Sunday, November 25, 2018

Estate Planning : Have You Been Named in the Will?



If you are a beneficiary in a will, you will most likely receive notice after the will is entered in probate court. Learn what to do if you have been named in a will from an estate planning and probate lawyer in this free video on estate law.

Saturday, November 24, 2018

Deeds - Some Ways To Make Changes - By the People



Rene at By the People talks about Deeds of trust and how they can help people make the necessary changes to their title for a number of different reasons. Call 707-428-9871 with any questions, and visit the website at http://www.bythepeopleca.com

Friday, November 23, 2018

7 Important Reasons to Form a Corporation or LLC for Your Business



Are you operating your business as a real business or as a hobby? It's time to make your business OFFICIAL before the summer push for business!

Let me ask you two important questions:
  1. Are you operating your business under your own name, a DBA or fictitious firm name, basically as a sole proprietorship or maybe as a general partnership? AND/OR
  2. Are you or your family at risk because of business or personal assets that are unprotected from unexpected losses or legal issues?
If you answered YES to either question please read on for important news about why NOW is the time to form an corporation or LLC for your business.
  1. Make it Official. Operating as a sole proprietorship or general partnership sends a message that you are still "testing" your business, or that you're not sure you'll really make it. Perhaps your accountant told you that incorporating is an unnecessary expense or that it won't help you save on taxes due to an expectation of low profits. This is the WORST marketing message you can send when you want to attract new clients and partners to your business, who want assurance that you're about your business and here to stay.

  2. The Law of Attraction. You get what you focus on. Testing, hoping and "seeing if things work out or not" BEFORE you decide to step-up and make your business official by incorporating broadcasts a clear message to the universe that you're not really serious about your business or committed to a positive outcome. The Law of Attraction states that the universe returns not what you wish for, but what you program into your deepest belief system through your dominant thoughts, actions and feelings. Making your business official and really stepping up says, "I am ready to receive!".

  3. Limited Personal Liability. You may be thinking "I already lost everything in the market collapse from 2008" and still recovering. If you're one of the few that managed to survive and grow your assets since then, but are still holding them in your own name, you're playing a VERY RISKY game (similar to those with assets in unstable European banks). Even if you don't have any assets right now, a lawsuit or judgment will destroy any credit you are looking to build in the future PLUS you may be looking over your shoulder for years waiting for someone to come after you when you finally do start to turn things around. That's no way to live your life. One lawsuit from an unprotected business can ruin your chances of getting a personal auto loan or refinancing your home. Good people who "play by the rules" can still be sued for the most unexpected reasons. You may be thinking "my business insurance will help me out" but are you really covered? Even if your business is never sued, what if you're unable to pay a vendor and they come after you? Do you want to be personally liable? Put a halt to greedy people looking to take what you have worked for! This is the best time to form an LLC or corporation to limit your personal liability.

  4. Reduce Your Taxes. The bottom line is that operating as a sole proprietorship will cost you the most in employment taxes (up to 15.3% on earned income up to $113,700 in 2013). That means that your income will be taxed as the HIGHEST possible TAX RATE as a sole proprietorship. By the way, filing a Schedule C (the form filed for earned income from a sole proprietorship) also means that your business is among those MOST LIKELY TO BE AUDITED. Why? The IRS has a $300 BILLION tax gap and they believe the biggest tax cheats are the little business owner like you. Why? Their stats show them that sole proprietorship are MOST likely to UNDER report their income and OVER report their expenses (two big no-no's with the IRS). Operating as an S corporation or LLC taxed as an S corporation in many situations is a much better approach for two reasons. You will have part of your profits as distributions which are NOT subject to the 15.3% employment taxes AND move that profit to schedule E, not schedule C which is more likely to be audited!

  5. Access More Funding Options. Operating as a sole proprietorship or general partnership limits you when it comes to funding options. You are also DAMAGING YOUR PERSONAL CREDIT SCORE by operating this way. How do you finance your business as a sole proprietorship? You use your PERSONAL CREDIT cards which will drive up your revolving debt which will in turn DRIVE DOWN your personal credit score! When you form a corporation or an LLC you will SEPARATE your PERSONAL and BUSINESS CREDIT. Yes, any type of cash funding with a personal guarantee will come into play, but that DEBT does NOT show up in the personal credit bureau which is HUGE for future funding! As you form a new LLC or corporation NCP will help (if you choose) to build your business credit scores quickly and get your business in a position to secure funding to grow. But the first step is to form a separate legal entity.

  6. Simply Your Life. Yes, in fact operating as a sole proprietorship will complicate your life, not the opposite. Separating your business and personal life will make it much easier for you to navigate both from a financial and legal point of view. Now you will have each in its own compartment where it belongs to protect your overall success.

  7. Asset Protection. Forming an LLC for your safe assets like investments (those outside a retirement plan) will help you sleep better at night knowing you don't have all your "eggs" in one basket. If you are using a LIVING TRUST to protect your assets that will NOT work and everything in your trust may be vulnerable. Do you own other businesses that really should be operating through a separate bank account in a separate entity? Do you own real estate in your own name that may be sending a message that you are rich and have assets worth taking? Have you been in business for years or are you operating more than one business in one entity? Are you doing some business with a new partner and making the big mistake of running that revenue through your current business? Avoid these costly mistakes and form a separate company for that separate business.


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

Article Source: http://EzineArticles.com/7748772

Thursday, November 22, 2018

Happy Thanksgiving!


May you enjoy the feast and the company of your family on Thanksgiving day!

Wednesday, November 21, 2018

What Is Estate Planning and Is It Useful?


Estate planning creates a plan for distribution of your assets after you die. Most of us are familiar with a common product of estate planning: the will. Featured in TV shows and in everyday conversations, sometimes, the discussion surrounding this popular topic is not favorable.

We've seen people contesting wills, challenging their family members, feeling cheated by the administrators of wills and by the law and we've seen them arguing through lawyers about what wills mean how they should be executed. Other forms of estate planning exist to reduce the amount of conflict surrounding decisions.

Health care decisions can be included in estate planning; a health care proxy exists so that a chosen person can act out the desires of an incapacitated person still under medical care.

When it comes to the distribution of their wealth and medical decisions, multiple measures exist to enable the dead and the severely injured a means of executing their own desires. However, even in the case where no formal plans are made, heirs do receive some forethought in terms of the law.

The law of intestacy communicates that even if no measures are taken to distribute assets by a deceased party, those assets will still go to the deceased person's heirs. The law of intestacy has the most staying power in situations where it is least likely to be challenged by those wanting more. For insurance, according to Attorney Sean W. Scott of Virtual Law Office, this law works with a small number of assets and a with a small number of heirs.

In each of these cases, one can imagine there would be less conflict involved. With less to fight over, fewer fights can ensue. The same is likely true with fewer beneficiaries; as heirs likely know one another well when smaller in number, less family tension can arise. Fewer instances of certain heirs feeling more worthy than others to certain possessions may exist. The likelihood that an individual or set of siblings would usurp others' belongings may be reduced. And general confusion arising from miscommunication and a lack of cemented durable relationships may possibly decrease with a smaller set of heirs. None of these suggestions are set in stone, yet corresponding data would be a more than interesting dinner topic.

Scott emphasizes the financial advantages of estate planning, sharing that taking certain precautions can save money for heirs receiving portions of estates. As lawyers stay on the job, working to settle issues between family members or between the state and family members, their tabs continue running. Evaluating the multiple options may familiarize you with the best decisions for your situation, reducing stress and increasing savings for your loved ones after you pass.


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Tuesday, November 20, 2018

Can You Afford Effective Estate Planning?


"Can I Afford Effective Estate Planning?"

That's Really Not the Right Question.

What you should be asking yourself is: "Can I Afford Not to Do It?"

You may be asking yourself whether you can really afford to do the effective estate planning that you know needs to be done. That's not the question to ask. The real question is whether you and your family can afford to be without the protection and security that the right planning provides.

Would you drive without car insurance? How would you feel without the protection that liability and property coverage offers??

Would you leave your home uninsured?

Would you go without health insurance, knowing that any major medical bills could wipe you out?
In the case of the car, home, and health insurance, you're protecting against the possibility of something happening. If an insured event occurs, then your insurance will cover you, and the premiums you paid for the insurance will be more than worth it.

Estate planning is protecting against the possibility that you might become incapacitated during your lifetime, and the certainty that you will pass away one day.

So what protection and security does the right kind of planning provide?

Protecting You if You Become Incapacitated. If you become incapacitated and need help managing your financial affairs and your medical care, the people you want helping you will need the proper legal documents in order to have the authority to act for you.

Protecting Your Loved Ones. The right kind of estate planning will protect your loved ones from any of the following:

  • Creditors - whether they have creditor problems now, or some that arise in the future.
  • Predators - people who would take advantage of them after they receive an inheritance from you.
  • Poor Financial Judgment - sometimes our loved ones just aren't good at handling money.
  • Loss of Benefits - if you have a loved one with Special Needs, then having the right plan will protect their continuing benefits.
  • Family Feuds - Unfortunately, when your planning is not done correctly, horrible feuds can arise between family members, even among siblings who previously got along.
  • Divorce Loss - if one of your loved ones got divorced, would you want their ex-spouse to receive half of their inheritance? Without proper planning, that can happen.
  • Blended Families - in families where there are children from other marriages, then the right estate planning will protect against one side of the family being inadvertently disinherited.
Protecting Your Assets. The right planning will protect your assets from unnecessary expenses, and the potential for loss from creditors or a nursing home spend-down.

  • Probate Expense - If your estate goes through Probate, then your family will pay a much higher cost to administer your estate. The attorney fee to pay in Probate is calculated as a percentage of your assets, starting as high as 4.5%. For example, in Lucas County, the attorney fee for probating a $400,000 estate (gross value) would be $15,000. With the right planning, that cost could be significantly reduced, resulting in savings of up to $11,000!
  • Creditors or Long Term Care Spend Down. If you're concerned about the potential for losing your savings to a nursing home, and if long term care insurance is not an option for you, then the right kind of estate planning can help protect a large portion of your assets and preserve them for your loved ones.

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Sunday, November 18, 2018

Legal Separation Vs Divorce - Understanding How to Choose


Happily ever after is not always the case when it comes to being married. Often times married couples have a hard time and need to have a break from each other for one reason or the other. It is amazing how many marriages actually end in divorce. However, before you make the decision to get a divorce it is important to know all the facts and options before making a choice. You need to look at legal separation vs divorce when choosing the right one to fit your needs. First let us look at and distinguish the differences.

Legal separation is similar to a legal divorce however there are notable differences that need to be taken into account. A legal separation does not permanently dissolve a marriage, it is something that can be temporary if so desired. There are some couples that just need time apart from one another and living separately is the answer.

A legal separation occurs when the two parties are living separately and it has been filed through the court system. Do not mistake a legal separation for a separation. A separation is not filed with the courts and does not carry the same provisions as a legal separation. Much like a divorce, a couples assets, property and child custody are addressed via a legal separation agreement which is filed with the courts. A separation does not provide provisions and is based solely on verbal agreements. Living separately is mainly used to determine if separating is really what a couple wants to do. There is not paperwork or filing with the courts in the case of a separation.

A legal separation is mainly different from a divorce in the fact that the couple is still legally married. There are benefits to living separately instead of immediately filing for a divorce. A divorce terminates the marriage and any and all joint interest the couple may share. A living separately does not terminate the interest however it does divide the interest. Another benefit of a living separately is the couple can still take advantage of the tax advantages of being married, they can also continue with joint insurance coverage.

Once legally separated can be canceled at any time and the marriage returned to its original status. If a couple automatically proceeds with a divorce when there is a chance for reconciliation, the couple would have to get re-married. If there is any possibility of a reconciliation a legal separation is the way to go. It gives you the time to decide if being separated permanently is what you really want.

The statistics show that 50% of first time marriages end in divorce, especially for individuals under the age of 40. This may not be surprising to many of you because it is a sad but true fact. It seems to be a quick fix for many troubled marriages. Maybe if more people know there were other alternatives to divorce, no so many divorces would be happening. There are times when all a troubled marriage needs is a little time and reflection for both parties to see that they truly were meant to be together.

Whether you choose to have a divorce or get legally separated, it is highly recommended that you obtain legal counsel. Both a legal separation and divorce require filings to be made in the courts. A divorce also requires a reason for the divorce whereas a legal separation does not require any reasoning. Do not take for granted the different options afforded to you, sometimes making decisions quickly and while in an irritated or frustrated state is rash. Divorce and separation are not games, they are serious matters and need to be viewed as such.

Divorce is not something anyone wants to experience but there are times when the only alternative to a bad marriage is divorce. Whether you decide to have a full blown divorce or give a legal separation a try, it is important to find out all the details and facts before making a decision. Each state and country have different rules and prerequisites that apply for both legal separations and divorce. This is one of the most important decisions you will make; therefore, make it wisely.

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Saturday, November 17, 2018

Irrevocable Vs Revocable Trust


Establishing a living trust is critical to the ability to protect your assets and beneficiaries when you die. But many people don't know that there are two types of trusts - irrevocable trusts and revocable trusts. With irrevocable trusts, the grantor's assets are moved out of the estate. In a revocable trust, assets stay in the grantor's estate. There are advantages to each type depending on the grantor's specific circumstances. Here is a rundown on the differences between the two types of trusts.

Irrevocable Trust

Most people are unaware of the advantages that this type of trust provides:

  • Asset Protection - Moves assets out of the grantor's hands, keeping it safe from lawsuits or creditors. A trustee has the power to make decisions with or without the input of the grantor.
  • No Estate Taxes - Many people are attracted to these trusts because they are protected from federal estate taxes.
  • No Capital Gains Taxes - A skilled lawyer will be able to move assets into irrevocable trusts so as to avoid capital gains taxes. This cannot occur with revocable trust.

Before placing assets into this type of trust, make sure that the grantor will never need them. While it is possible to retrieve assets, it is very difficult and time consuming.

Revocable Trust

Most people have an idea of what this type of trust is. Grantors without complicated tax issues that want to still maintain control over their assets, often choose to have a this trust.

  • Mental Disability - Individuals who fear that they will one day be incapacitated, may want to designate a trustee to handle their assets which can include extensive instructions that the trustee must carry out. This is called a Disability Trustee.
  • To Protect Beneficiaries and Property - Keeps your property and assets out of probate. This ensures that your documents stay private and out of the public record. If privacy is important to you, consider a Revocable Living Trust as opposed to a Last Will and Testament which becomes a matter of public record that can be seen by anyone.
  • To Avoid Probate - Assets at the time of a person's death will pass directly to the beneficiaries named in the trust agreement and avoid probate.
  • For Flexibility - These types of trusts can be changed. If you have a second thought about a particular item or beneficiary, you can modify the document through a trust amendment. If you don't like the trust as a whole, then you can revoke the entire document.
Word of Caution: These trusts offer not creditor protection. If the asset holder is sued, the items in the trust are fair game. Upon your death, those assets will be subject to federal and state estate taxes.


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Thursday, November 15, 2018

Wednesday, November 14, 2018

Living Wills and Healthcare Power of Attorneys Help to Make Sure Your Wishes are Met


No one can foresee problems that may arise should he become incapacitated. Yet, you can avoid negative consequences of unforeseen problems by creating Living Wills and Healthcare Power of Attorneys (HCPOA).

Setting up a Living Will or HCPOA is a relatively simple task. The first step it to consult with an attorney that specializes in estate planning to ensure that your documents are clear. Here's an overview of what you can expect from your Living Will and HCPOA.

Healthcare Power of Attorney

The HCPOA, otherwise known as a "healthcare proxy" is a legal document that enables an individual that you appoint (your "agent") to act as your healthcare representative if you become incapacitated. The agent becomes your acting representative at the moment you become incapacitated, thus eliminating the need for your loved ones to argue over your rights and wishes in court.

Your agent has the authority to request or deny any medical treatment that he determines to be appropriate. Therefore, it is a good idea to choose someone that you trust as your agent. Please note: In most states, your spouse will be your default agent. If you are not married but are in a lifelong relationship your partner, he does not automatically become your agent. Make sure that you appoint your partner as your agent to ensure that he or she has control over your medical decisions if you are unable to make them.

Because your agent has whatever powers you give him or her, make sure that he or she understands your desires. Some of the decisions he or she may need to make include but are not limited to:

  • Deciding whether or not you will receive medical treatment
  • Withdrawing life-support

Living Will

A Living Will and HCPOA should be used in tandem, since one document complements the other. Your Living Will is a document that clearly expresses your desires. In short, your Living Will provides your medical team with instructions for how to carry out your wishes should you become incapacitated. For example, if you become brain dead, you can state in your Living Will that you wish to receive or not to receive life support.

By creating a Living Will, you ensure that your desires will be carried out without court involvement that can be costly and stressful for your family. Criteria for enacting a Living Will vary by state; so make sure that you consult with an attorney to ensure that your Living Will complies with the rules in your state.


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

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Tuesday, November 13, 2018

Is Probate Necessary?


Whether probate is necessary depends on what property the decedent owned, how it was held, and on the law of the state in which the decedent died and the laws of any states where the decedent held property.

Sunday, November 11, 2018

The Advantages of an Uncontested Divorce


Many states these days give couples the ability to go through a simple uncontested divorce. In fact, this is the way most couples do divorce. It's relatively simple and inexpensive, and it preserves both parties' dignity and privacy.

Divorce is expensive no matter how you slice it, but if you do need to get a divorce, an uncontested divorce will let you save yourself time and money, and as much heartache as possible. This situation is difficult enough, and you don't have to make it more difficult to making the divorce itself contentious unless it's absolutely necessary to do so.

If there are particularly contentious issues in your marriage still to be resolved (such as child custody), then an uncontested divorce may not be the way to go, since of course you'll need to make sure your rights and those of your children are taken care of. In fact, in some states, if there are children involved, an uncontested divorce may not even be an option for you.

However, if you and your soon-to-be ex-spouse are on relatively good terms and simply need not to be married anymore, and if issues such as child custody are already worked out between you, then an uncontested divorce is going to be easier for everyone. Yes, the process of getting divorced is still painful, but an uncontested divorce makes it as simple a process as possible, too.

Privacy is also an issue with divorce. The disclosures you make to each other don't have to be a matter of public record unless you each want them to be if the divorce is uncontested. The agreement you make will have to be a matter of public record, but only that. By contrast, contested divorce is likely to have every single little nuance of the divorce a matter of public record simply because spouses in a major battle with each other make such things a matter of public record. So if you want to protect your privacy, work out the details of the divorce between you and simply make the final agreements a matter of public record, not every little discussion you to have had as well. This is easier on your children, too.

If you think you can't negotiate an uncontested divorce with your spouse, that's fine. Perhaps you can't. However, make sure that your spouse and you are both aware of the problems an uncontested divorce can help you avoid. It may very well be that simply faced with the differences in navigating through a contested divorce versus an uncontested one will convince the spouse who doesn't want the uncontested divorce to go through with it.

Now, it should be noted that you don't have to agree as to why the divorce is happening to make it uncontested. You only have to agree on the terms of the divorce to make an uncontested divorce possible. Therefore, at first blush, it may certainly be true that you think you cannot manage an uncontested divorce. However, after a bit of time has gone by and tempers have cooled, you may think that having an uncontested divorce is best for you after all. Think about it, think about the cost both financially and to your children, and then decide whether or not an uncontested divorce is your best bet.


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Saturday, November 10, 2018

Adult Guardianship



Many families struggle with how to manage the finances, health care and other personal matters of adults who are unable to care for themselves. You may decide to pursue an adult guardianship if an adult is mentally or physically unable to make his or her own decisions and does not have a living will and power of attorney that provide a competent person to make those judgments.

Friday, November 9, 2018

Thursday, November 8, 2018

Is An LLC Best?


I am not a lawyer, I am a Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California, and laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.

A Limited Liability Company (LLC) is a state-defined entity that can be thought of as being a hybrid business entity, having some features of both partnerships and corporations.

LLC's are popular primarily because they are more flexible, and are simpler to operate than type S or C corporations. Some think LLCs save taxes, however most often, they do not.

In some ways, LLCs are similar to corporations. Both LLCs and corporations provide basic liability protection for owners and/or shareholders, and officers.

One way LLCs are different, is that LLCs have owners, and corporations have shareholders. A LLC can have several owners, called "members" or "partners", named members, for the rest of this article.

A LLC's partnership agreement defines the member relationships in the LLC, and includes an ownership agreement.

LLCs can have at least one managing member, and may also choose to appoint officers. LLCs usually have an operating agreement, that describes the LLC's function. LLC members can be any combination of individuals, corporations, and other LLCs.

Double taxation occurs when a company first pays tax on their profits; and then their officers, employees, and shareholders, get taxed again on their individual incomes.

Historically, one of the primary reasons that LLCs were chosen, was for their potential tax savings. LLCs avoid the potential double taxation problems that C-type corporations can have.

Double taxation is not really an important financial issue now, because the IRS has caught up, and removed most of the way taxes could be saved on both common and creative types of income.

Now, there seems to be no tax advantages or disadvantages to forming a LLC. No matter what corporate structure or partnership one picks, they must pay taxes. Tax payments may be split up in different ways, however one way or another, income is taxed.

Single-owner LLCs are taxed the same as sole proprietorships, and file the same 1040 tax return and Schedule C, as a sole proprietor.

Single-owner entities rarely get the same liability protection that larger companies get. Multiple-owner LLCs may potentially provide better liability protection than some corporations.

Multiple-owner LLCs are taxed the same as partnerships. Partners in a LLC file the same 1065 partnership tax return, as would be done with any conventional business partnership.

Owners of LLCs are considered to be self-employed, and must pay a self-employment tax of about 15%, on the total net income of the business.

In C or S corporations, only the salary paid to employees is subject to employment tax. The IRS monitors salaries, and will define income as salary, if they think a company is not paying adequate salaries. Payroll taxation is expensive.

The actual advantages of LLCs over S or C corporations is that they are:

1) Much more flexible in ownership.

2) Simpler to operate.

3) Not subject to as many corporate formalities, or reporting requirements.

4) Owners of a LLC can distribute profits any way they want.

Usually, the state, county, and city, requires LLCs to pay them the same taxes, fees, and registration fees, as corporations must. Also, many states require LLCs to hire an accountant to prepare the LLC's tax returns.

LLCs no longer save you money. The best reason to choose to form a LLC, is the flexibility they offer.

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

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Tuesday, November 6, 2018

What Is a Deed of Trust and What Is It Used For?


A deed of trust is a term for a document which has a specific legal meaning in the United States not shared in other parts of the world. It means that the value of land or so called real estate is transferred to a trustee who holds the land or real estate as security in relation to a loan. The usual language used to describe the person borrowing the money is that of trustor whilst 'beneficiary' is the word used to describe the person that benefits from the deed, or in plain English the person or institution that lent the money.

This type of legal document is only relevant in a few states. The states which usually use this type of deed are Alaska, Arizona, Arkansas, California, Colorado, the District of Columbia,Idaho, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, North Carolina, Oregon, Tennessee, Texas, Utah, Virginia, Washington, and West Virginia. The other states in the United States tend to prefer the use of mortgages to secure the interests of lenders in relation to real estate transactions. Theoretically, the loan to which this type of deed relates is created in such a manner that lending institution or person transfers money to the trustor so that they may purchase the property so that the purchaser may then transfer this money to the person selling the property and the seller then executes a grant deed followed by an accompanying trust deed executed by the purchaser to create the trust deed. However, the usual practice is that the property is put into the hand of an escrow holder until the funds are available and the grant deed and deed of trust are in the possession of the escrow holder to enable the reversal of the purchase if all of the necessary elements do not fall into place.

A trust of this type is certainly distinguished from the nature of a mortgage because this type of property document revolves around three parties. A mortgage is only ever between two parties. Also, a trust of this nature does not actually involve a transfer of title from the mortgagor to the mortgagee in the way that a mortgage does. Usually, the method of documenting a deed of this nature is with the county clerk near the location of the property. This enables the searching and registration of encumbrances and interests in the relevant property such that it is possible to have an open system of property registration.

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Monday, November 5, 2018

Estate Planning Tools: Durable Power Of Attorney - Seven Factors To Consider


If something happens while you are alive, that makes it impossible for you to handle your financial affairs, sign legal documents or communicate your wishes to others, you could have trouble in many ways. Without a properly executed Power of Attorney, your family may need to get a court order just to handle your affairs. These can cost plenty and waste months of time.

Even though a power of attorney is a relatively simple document and is readily available from many sources, I am still amazed at how many families and individuals do not have one in force. Follow these simple guidelines and make sure that you are protected should anything ever happen that would cause you to need one.

Seven Factors To Consider:

1. Your Agents: One of the most important decisions with a power of attorney is your selection of agents. Will you use a single agent or appoint co-agents? Who will be your successor agent(s) if someone is unable or unwilling to fulfill their duties? These are the questions you need to answer before you are ready. Your agent(s) should be organized, good with numbers and possess great common sense.

2. Access Medical Records: Will you allow your agents to have access to your medical records? They may need this information to keep track of, or to dispute medical bills. But if you want or do not want them to have access to this information, you will need to specify inside your power of attorney.

3. General or Specific Powers: Will your power of attorney provide your agent with broad general powers or very specific powers? You can decide on either, but the more specific you get, the more limited the powers your agent will be allowed. Most people will choose to provide a general power that will include handling most financial, business and personal matters.

4. Beneficiary Changes: You can empower your agents with the ability to change your beneficiaries if you would like, but this can be a risky proposition. In most instances, you will not allow for this provision. You can also provide for the power to refuse potential inheritances. I think this can be helpful in situations where, if someone passes and is leaving you an inheritance, but you refuse it (or are deceased), it would go directly to your children instead.

5. Effective Dates: When will your power of attorney take effect? When will it terminate? You can have it take effect immediately upon execution, you can have it take effect upon the certification of some medical condition or you can specify a certain time period. You might use this if you were going to be out of the country for 3 months or in a rehabilitation program for certain length of time. All powers of attorney terminate immediately upon the death of the individual, but you can set other dates or events as previously outlined.

6. Hire Professionals: Will your agent have the power to hire professionals such as accountants, financial advisers, lawyers, etc? If you want them to be able to handle these on your behalf, you have to specifically allow them by including this power within your document. If not, you may want to specify who you are already working with and require their services if needed.

7. Receive Compensation: Will your agent be allowed to receive reasonable compensation for time and efforts spent acting as your agent? Will they also be allowed to receive reimbursement for any expenses that they incur while acting on your behalf? In most cases you should allow both of these. Taking care of someone's affairs can be time-consuming and there should be reasonable remuneration for these services. While you can specify either way, your agents may be unwilling to participate without it and this could cause bigger problem down the road.

Summary: Having a power of attorney drafted is a fairly simple and inexpensive process. You can hire an attorney, use online legal services or purchase a legal software package to assist you with the preparation. It is very important to follow the execution and filing recommendations for your state and county. Having proper witnesses and notarization of all signatures is a great safeguard for any legal documents, so make sure to get them done right.


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Sunday, November 4, 2018

Legal Document Preparation - By The People


Rene talks about how By The People Document Preparation Service in Fairfield CA can help people with uncontested legal matters in an inexpensive way. See more at http://www.bythepeopleca.com, or call 707-428-9871

Saturday, November 3, 2018

Annulment Versus Divorce



There are various ground upon which an annulment or a divorce could be granted by a court. The legal consequences could be very important, since an annulment basically erases a marriage, whereas a divorce simply terminates it.

Thursday, November 1, 2018

How to Choose the Right Business Structure



By reviewing the pros and cons of these four common business structures, you can determine which one will benefit you most.

Wednesday, October 31, 2018

5 Reasons an LLC Is Right For You


As a business owner, you can run your business as a sole proprietorship, or it can be operated as a formal structure, for example an LLC. Forming LLC as the business structure is an exceedingly good choice for the average entrepreneur. Managing your company as an LLC brings many benefits.

Following are just a few of many reasons to contemplate having an LLC, if you are a small business owner:

1. Protection of personal assets - As a business owner, you are more apt to be sued. You need to protect your personal assets from those of your company, so your personal monies are protected in case a lawsuit is brought against your company. By starting LLC that is correctly setup, you are usually protected.

2. Have a professional image - Nothing says professional company like a legitimate business structure. Just about anybody can start a company, but it is the people that go the extra distance by setting up a business structure show how serious they are about their company, and people take notice of this.

3. Trust - If your business is an LLC, you are making it particularly easy to discover suppliers in which to do business with you, and particularly easy to get a business loan. Operating your business as a profession, and not a hobby, is a wonderful way to gain trust with those companies that you need to work with.

4. Low audit risk - Sole proprietorships are more at risk to facing an IRS audit than LLCs. This most likely has something to do with the fact that a person might be using the business as an excuse to get some tax benefits, though they would get more if they actually had an LLC and the IRS is onto these people. However, if a person has taken the effort of LLC formation, it is likely they are in business for all of the right reasons.

5. Business flexibility - When operating as an LLC, you have greater choices in how to handle operating your business. Adding additional owners is a simple process, which is not possible as a sole proprietor. A limited liability company is a very flexible business structure that gives a variety of options on how you wish to manage your company.

If you are going to run a business, then you should do what you can to run it as effectively as possible. Making use of an LLC as your business structure has many virtues, even more than those listed in this article. Treat your business right and make it an LLC.

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Tuesday, October 30, 2018

Understanding a Power of Attorney for Finances


Carolyn Rosenblatt discusses a Power of Attorney for Finances. This important document may be necessary to help care for your elderly parents. It can prevent financial elder abuse.

Sunday, October 28, 2018

Power of Attorney



Rene at By the People in Fairfield CA talks about just some of the reasons for a need for a Power of Attorney. These documents can be really important aids in helping loved ones.

For any questions about the types of Power of Attorney, and what may be beneficial for your individual needs, call Rene or Tammy at 707-428-9871 and visit the website at http://www.bythepeopleca.com

Saturday, October 27, 2018

How Do I Set Up an LLC Without a Lawyer?


Limited Liability Companies (LLC) are business entities that got their start in 1977 and are considered to fit somewhere between sole proprietors/partnerships, and fully incorporated companies. Existing to fill the gap between corporations and sole proprietors LLCs can help to segment personal and business assets and liabilities while at the same time maintaining a simplified tax structure. An LLC is not corporations but is a company structure to operate like a corporation.

Liability

An LLC is in itself its own legal entity so long as it is treated as one. The LLC can assume obligations of debt. In other words the LLC, not the members, hold a loan and the liabilities that go along with it. If however the members of an LLC use the entity as their personal bank or for personal matters it is possible that the LLC will not be recognized as a separate entity if a lawsuit is filed.

Taxes

As far as taxes go LLCs are considered by the IRS as pass-through entities. This means income passes through the business and goes straight to the LLC members just as they would with a sole proprietorship or partnership. These profits or losses are filed on each individual's tax return. A caveat to this is that LLCs can be taxed as a corporation if the members elect to do so. So, if treated appropriately an LLC can shield its members from the liabilities of a corporation without assuming the tax overhead a true incorporation must maintain.

How to File

If you are thinking about forming an LLC for your business, spend the next 20 minutes educating yourself on the difference between Sole proprietorships, LLCs, and S corporations. My guess is that for most people starting out as a sole proprietorship will be sufficient for current needs and much cheaper than filing for an LLC.

If you have done your homework and have decided that an LLC is the way to go, what next? The steps to filing an LLC are not complex and although requirements vary from state to state, setting up an LLC is a simple process that can usually be done in an hour.

  1. Articles of Organization

    The first step is to contact your secretary of state and obtain the required form for filing a LLC. In some cases this will be a simple fill in the blank form. The state of Washington for example has an online application. The processes guides you through establishing a legal name, completing the certificate of formation, establishing the registered agent, defining the members, and guides you through the initial annual report. The fee for WA is roughly $200.00, additional costs may apply depending on how you file. Google your secretary of state to find out more of the specifics.

  2. Registered Agent

    As you fill out your articles of organization you will be required to define the registered agent for the LLC. In most cases this will be you. The registered agent is the person or business that is designated to receive important documents on behalf of the LLC. The most appropriate individual for this is generally the one spear heading the business.

  3. Operating Agreement

    The operating agreement is the internal agreement between the members of the LLC. It is not required to form the LLC but it should be drafted to state the rights and responsibilities of the members. The operating agreement should contain but is not limited to the following;

    • Capital Contributions. How are the members expected to make capital contributions if the business needs additional capital?
    • Management Decisions.When the members are faced with important management decisions, does each get one vote, or do they vote according to their percentage interests in the LLC? Majority shareholders may feel they deserve a larger say.
    • Financial Withdraws. How do owners go about draws from the profits of the business?
    • Buy Out/Cash out. How do members leave the LLC? Will they receive an immediate payout of their capital contributions?
    • Compensation. If a member does leave how much should they be paid?
    • Share. While there are not actual shares within a LLC it should be defined how or if a departing owner is allowed to sell an interest to an outsider?

Publish a Notice

Some states require a notice of intent to be published. This can be as simple as running a classified ad in your local paper. Specifics on this will vary and your secretary of state can provide you with the steps required.

Licensing

The last bit to think about is obtaining other appropriate insurance, permits, and licenses for your new LLC. Each industry had its own unique set of requirements so be mindful of this once your business is established.

Conclusion

LLCs are considered by many to be a great way to establish a small business. There is little required to get one started and protection they provide could be priceless. That said an LLC may not be needed for everyone. Only you know the entity type most appropriate for your business.


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