It is no secret that there has been an exodus of people from California. And when people leave the Golden State, others have claimed that they will face an exit tax from the Franchise Tax Board (FTB). However, this is simply not the case. There is no such thing as an...
Just when you thought they were done passing laws! After the passage of the Corporate Transparency Act (CTA), other states have passed similar laws with similar aims. Most notably, New York just passed the New York LLC Transparency Act (or NYLTA). NYLTA...
Does the Rule Apply to Real Estate? If you invest in and/or syndicate real estate what are the duties to your investors? You owe them a duty of loyalty. But how far does that go? The issue of corporate opportunities is important. I wrote a whole chapter on it (from...
You must be very careful when you are the only owner of your LLC. Single member LLCs require extra planning and special language in the operating agreement. One example: What happens when the single owner/member passes? Who takes over? It may be months before that is...
Mom’s Mistake Is No Excuse! Do you have your registered agent service properly in place? A recent Ohio case illustrated the significant pitfalls of lax procedures. Your registered agent’s job is to accept service process, meaning notice of a lawsuit. If you don’t...
Let's start with the good... California Raises their Homestead Exemption The homestead exemption is an excellent creditor protection strategy for personal residences. It all started in Texas when they were an independent republic from 1836 to 1846 and in need of...
You’ve set up your LLC. Now it’s time to make money, and flow the profits into your bank account. It's time to think about how you will be distributing LLC Money between bank accounts. In the example we’ll use in this article, you have transferred title in a real...
Matt wanted to open a confidential mail order business and he needed to operate with absolute privacy. No one could ever know that he ran a business that sold sensitive supplement products over the internet. Matt lived in Las Vegas and knew he needed a Nevada LLC for...
Force Majeure is a French term meaning superior force. It is also a contract clause that relieves parties from performance when an extraordinary event occurs. Such challenges, known as ‘black swan’ events or generically ‘Acts of God’, may be mitigated by a force...
“An ounce of prevention is worth a pound of cure” – Benjamin Franklin Benjamin Franklin’s famous words were written to advance fire safety. Shortly thereafter, in December of 1736, the Union Fire Company was formed and Philadelphia became the safest city in the...
Asset protection planning defends your assets from future creditors, divorce, lawsuits or judgments. How can you best plan to protect your personal and business assets? Here are some guidelines to implement strong asset protection. Plan Your Asset Protection Strategy...
New Texas Case Sends Shock Waves LLCs are set up to make personal assets inaccessible for any obligations of the entity. Protection may be lost, however, if you are not aware of your personal conduct when managing business through your LLC. The case below deals with...
Starting your business from scratch is a big deal. There are a million details to take care of, and the list of demands can seem endless. Small business owners have to hire employees, worry about taxes, and find ways to maximize profits while keeping costs as low as...
When it comes to corporations, LLCs and Limited Partnerships, good standing is a legal requirement. And the consequences of not being in good standing, while unfortunately unappreciated by most, can be devastating. Good standing sounds important. It conveys the sense...