If you own the building you’re working out of, it is in your best interest to insure it. If you’re a tenant renting space, you may be listed on your landlord’s insurance agreement. Even so, it’s probably a good idea to have your own renter’s insurance policy rather...
Keep in mind that in cash flow investing, your rent determines your income. If the property value goes down slightly but you are still able to charge the same amount of rent, you will see no change in your cash flow. However, if your property depreciates so much that...
By Garrett Sutton, Esq. People in debt should, and often do, explore every option before filing for bankruptcy. One option is to settle your debts for less than owed. The company owed takes a partial payment and forgives the rest of the debt. And that forgiveness of...
The Internal Revenue Service has recently issued a guidance list of forty frivolous positions that taxpayers (or more precisely “nonpayers”) have attempted in the past. The IRS released this list to put the public on notice that these positions have no basis for...
Of any debt, tax debt is perhaps the most stressful. The IRS can be very aggressive in its collection efforts, and has strong, some may say extreme, powers that mere lenders don’t, such as placing a lien on your property (or even seizing it), garnishing your wages, or...
Payroll definitely requires good bookkeeping and a healthy paper trail. Whether you are hiring a bookkeeper or a bank or payroll service or not, you must make certain that all of the employee payroll-related documentation is on file. The W-4 and I-9 forms signed by...
In my book, The ABCs of Getting Out of Debt, we discuss several ways to deal with debt. While not a popular option, for many people bankruptcy is the only option. Before you jump into any debt reduction program, make sure to know all of your options available to you....
Whether you’re a real estate investor, business owner, or just a consumer who has paid bills, you’ve got a credit report. And that report is probably more important to your financial life than any report card you ever received in school. In fact, it plays a key role...
In many states, professionals who want to incorporate their business can do so only as a “professional corporation.” In other states, professionals have a choice of incorporating as either a professional corporation or a standard corporation. What services constitute...
The Duty of Care – what does this really mean to a rental property owner? Case law and legislation by lawmakers across the country have established the public policy that landlords exercise reasonable care in managing their properties to prevent foreseeable injuries...
By Garrett Sutton, Esq. I frequently mention documents that you need to maintain to protect your corporate veil. Maintaining your stock ledger is another way to help protect your veil, which protects your assets. Read on to learn more about a stock ledger. When stock...
By Garrett Sutton, Esq. Most professions offer some kind of continuing education. By state or industry rule the courses are required for professionals working in medicine, accounting, law, engineering and other fields. In addition, many industries have their own...
By Garrett Sutton, Esq. There are two goals for real estate investing. One is for the value of your property to appreciate over time so you’ll be able to sell it for more than you bought it. Those are the two crucial points in time for your property: When you buy it,...
If you thought Sole Proprietorships were bad, just wait. The General Partnership really is the ugliest entity. A General Partnership offers no asset protection and doubles the liability because you are also responsible for your partner's mistakes. Unlike a Sole...
By Garrett Sutton, Esq. Each entity choice has its pros and cons. There is no one-size-fits-all corporate entity that will be the best for every situation. (And beware of the advisor who tells you there is.) However, there is one entity that we call the "bad entity."...
Your corporate veil is the shield that protects your personal assets from corporate attacks. The strength of your corporate veil is determined by how well you follow the laws, regulations and requirements of your corporation. Piercing the corporate veil sounds...
When you own, run or manage a company you have certain duties. You owe a duty to the others involved as well as a duty to the company itself. At its core these duties require you to act with ‘due care.’ Courts have held that this means the degree of care that an...
It is well recognized that limited liability for shareholders, officers and directors is the number one reason to incorporate. Indeed, the origin of the modern day corporation in England five hundred years ago was due to limited liability concerns. Why invest in a...
The Jumpstart Our Business Startups Act (or JOBS Act) flew through Congress and was signed by the President last week. It is heartening to see a good idea get through Washington once in a while. The JOBS Act loosens restrictions for raising money for new businesses,...
The lowdown on business travel and taxes starts with recording everything. Even if you’re entertaining for business reasons and the amount of the entertainment is less than $75 and you’re not required to have receipts, get them, record them and keep them. According to...
Single Member LLC taxed as an S-Corp Does the single member LLC that elects to be taxed as an S Corporation need to issue stock, have minutes and basically behave like a corporation instead of using the LLC members certificates and operating agreements? The LLC taxed...