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California: Pay To Play
California continues to fight for its $800 minimum franchise tax. If you live outside the state but passively own real or personal property worth over $50,000 inside California you are doing business in the state. Sayeth California’s Franchise Tax Board: Please pay the $800 or we’ll sue.
Corporate Transparency Act Update
The Corporate Transparency Act (“CTA”) passed by the Senate and House now requires annual reporting of an entity’s beneficial owners to the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”) database.
The Five Ws in Every Good Business Plan
You may be in a hurry to put together your business plan. But don’t confuse the frenetic blur of activity with thoughtful preparation.
Tax Advantages of Incorporating Your Business
We’ll give you the best reasons for incorporating your new business based on tax benefits and give you the information you need to incorporate.
Employer Identification Number (EIN)
EIN stands for Employer Identification Number. The IRS requires that you have such a number when you incorporate or form an LLC.
C Corporation
Corporations have been used for over 500 years to limit owners’ liability and thus encourage business investment and risk taking. Their use for this purpose continues to this day. You will hear about both C Corporations and S Corporations. Both are corporations with charters granted by the state of organization.
S Corporation
Business owners can select how they wish to be taxed, and an S Corporation is one of those tax designations that can make a big difference in how much you pay in taxes, and how to handle profits and distribute shares.
Limited Partnerships – Advantages and Case Study
Limited partners are not held personally responsible for the debts and liabilities of the business, although the GP, if an individual, may be personally responsible.
How to Set Up Single Member LLCs
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.
How to Bring Investors into Your Business
How do you bring investors into your business? Not the sympathetic Mom and Dad kind of investors but rather the serious investors who expect quite a lot.
Incorporate First – Deduct Second
Should you set up a corporation or LLC before you start trying to deduct expenses? A recent case suggests you should. Many think that they can deduct all of their start up expenses before formally incorporating a business. But in Carrick v. Commissioner of Internal Revenue (T.C. Summ. Op. 2017-56, July 20, 2017) the Tax Court ruled otherwise.
LLC vs Corporation
Choosing the right entity can be one of the most important decisions a business makes. Business owners and investors may find themselves asking which to pick, LLC vs Corporation.
Courts Limit Pension Payouts
Are you certain of your pension? Can you count on Social Security to pay you in the future?
Garrett Sutton Recognized for Lifetime Achievement Member by America’s Top 100 Attorneys
America’s Top 100 Attorneys announced the Lifetime Achievement selection of Garrett Sutton, Esq. among America’s Top 100 Attorneys®.
Case Study: How Does Reverse Veil Piercing Occur?
Piercing the corporate veil. It sounds painful, and it is. A judgment is entered against a corporation with no assets. To collect the court allows the judgment creditor (the winner in the case) to pierce through the corporation and reach the personal assets of the shareholder.
4 Reasons To Use A Limited Partnership Or LLC For Real Estate Investments
Although other limited liability entities are available, for the following reasons, the preferred entities for real estate investments are the limited liability company (LLC) and the limited partnership (LP)
Mom’s Mistake is No Excuse – You Need a Professional Registered Agent
You need a responsible and professional registered agent to receive and promptly notify you of a lawsuit. The Court will not accept excuses if you misplace service of process.
ADA Compliance and SEO
It turns out that by following SEO best practices, you are also in line with the four principles of the WCAG.
What’s new in 2021?
Corporate Direct will keep you informed of these new rules and will attempt to assist you with filing your FinCEN report.
Distributing LLC Money
Distributing LLC Money can seem confusing and burdensome at first. However, if not done correctly, you run the risk of a creditor seeking to pierce the veil of your entity.
California Does Something Right (Temporarily) for Small Business
The California Franchise Tax on business entities is the highest in the nation. But due to the economic impact of the Coronavirus, California is temporarily waiving this tax.
Is Bitcoin a Scam? Scam-Proof Your Assets
I couldn’t fit all scams in my newest book, Scam-Proof Your Assets. Is bitcoin a scam? No. Not in and of itself.
The Crimes of a Nominee Officer
Filing false reports with the state of Nevada can result in significant penalties. In this case the false filings were doubled. First, the Annual List was filed under a knowing falsehood.
Can Emails Create a Binding Contract?
When negotiating terms via email, make it clear in the beginning that the email exchange is for discussion purposes only
Are Reverse Mortgages a Scam?
Reverse mortgages are a calculated risk that should involve insights from numerous professionals. Be sure, before considering any such option, that you speak with a certified HUD housing counselor
New Laws Upend Property and Privacy Rights
Do these exclamations ring of an authoritarian bureaucracy? That bell is ringing louder in the last year as local, state and federal agencies have approved new restrictions on property and privacy rights.
Black Swan Events and Force Majeure Clauses
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.
The Four Dangers of Series LLCs
There’s a lot of talk about Series LLCs and people are wondering if they’re a smart idea. The short answer is that they aren’t. See 4 reasons to avoid them.
Six Ways Joint Ownership Could Cost You
Many people use joint ownership (the holding of title by two or more people), without really thinking about it.
IRS Liens Don’t Die
Can the Internal Revenue Service (“IRS”) collect a prior owner’s delinquent federal income taxes from the subsequent purchaser of real property?
The End-of-Year Legal Audit You Can’t Afford to Skip
Then, as now, survival does not allow for rest. The survival of any organization requires being prepared, organized and ready to respond.
10 Rules for Asset Protection Planning
Then, as now, survival does not allow for rest. The survival of any organization requires being prepared, organized and ready to respond.
Why Wyoming Will Become the New Blockchain Mecca
Blockchain technology is becoming ever more prevalent in today’s highly technological world, and Wyoming has recognized this.
How to Avoid Being a Victim of Rental Scams
According to data reported by Forbes in July 2018, U.S. renters lost a staggering $5.2 million to rental scams.
U.S. Supreme Court Unanimously Rules: States Can’t Tax Out-of-State Trusts
Do you live in a high-tax state? Would you be better off having assets in a trust in a state with no taxes?
Paul Manafort Case and Metadata: The Overlooked Factor That Determined His Fate
Instead of cutting and pasting the redacted information into another document, as Manafort’s attorneys should have done, they simply blacked out the information in the same document.
Are Individuals Protected Within Their LLC?
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.
Ultimate Guide to Vetting a Business Partner
Business partnerships can bring together individuals whose complementary skills and experience can help the venture succeed.
Case Study: Florida Single Member LLC’s and Charging Orders
When it comes to charging orders, the key asset protection feature of LLC’s and LP’s, there are two opposing trends.
9 Rules to Consider Before Signing an Arbitration Provision
Binding arbitration is becoming a popular method to resolve disputes in real estate transactions. Arbitration provides certain advantages that courts do not.
Sales Taxes are a Big Issue in 2019
Sales tax policy has changed dramatically within the past year, thanks to the Supreme Court ruling of South Dakota v. Wayfair, Inc.
Guardianship Abuse: Are Your Parents Protected From a State Sanctioned Nightmare?
Then all of a sudden, somebody comes to your parents’ door with a court order mandating that they be moved into an assisted nursing care facility.
Protect What’s Yours: The Top 10 Benefits of Incorporating Your Business
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.
Are You Buying A Home With All Cash? Here’s Why You Should Reconsider
Buying a home with all cash? Before you make the purchase, consider the consequences based on the rule governing real estate in 22 states.
Do Land Trusts Provide Asset Protection?
Have you heard that land trusts provide asset protection? Do you believe it? Even in their state of creation they don’t protect ‘beneficiaries’ from liability.
New Rules for HELOCs
Have you ever tapped the equity in your home to pay for a new car or a college tuition? With a HELOC, also known as a home equity loan or line of credit, you could do so.
Does Asset Protection Trump the US Constitution?
Although states with asset protection legislation may purport to hold exclusive jurisdiction over asset protection trusts, this may not always be true when another state has personal jurisdiction over the debtor.
Five Steps for Real Estate Asset Protection
When purchasing real estate, it’s critical to protect ourselves and our possessions from lawsuits. We live in the most sue-happy society, in one of the most litigious times, and you need to protect yourself.