Contact us
855-239-8015

What is a pass-through legal entity?

What is a pass-through legal entity?

C-Corporations are soon to become extinct, or so it appears.  Today, only about five percent of businesses in the United States are C-Corporations.  The other ninety-five percent of U.S. companies are established and taxed as pass-through entities.  Basics of pass-through businesses in America As the name indicates, a pass-through business is one that is not […]

Read More

Is a single member LLC required to have operating agreement?

Is a single member LLC required to have operating agreement?

Afterall, why should a single member[1] need a rulebook for himself or herself? Fair point.  However, please remember that an LLC operating agreement is more than just a “rule book” for the LLC.  Also, keep in mind that what is today a single member (i.e., single owner) business entity will, hopefully, grow and expand over […]

Read More

single member LLC tax stuff

single member LLC tax stuff

A single member LLC can be taxed as a disregarded entity or as an S Corporation. First and foremost, this is an area best discussed with your accountant, so please do not interpret this short post as me trying to take the place of your accountant–I am not.  Ok, with that necessary clarification, let’s proceed. […]

Read More

Asset Protection for Business Owners: some basic ideas

Asset Protection for Business Owners: some basic ideas

The most frequent questions I receive from business owners relate to asset protection. Common sense and a little extra care can do wonders to provide significant protections for the business owner and the business. I was recently contacted by a business owner regarding these things–namely, asset protection for himself and his business. He wanted to […]

Read More

Piercing the Corporate Veil is the exception to the rule

Piercing the Corporate Veil is the exception to the rule

Legal liability protection is one of the main reasons for corporate entities.  In most instances, these legal entities insulate owners from legal liability. While there are often tax, accounting and other important reasons for corporations and LLCs in a business or investment setting, at the very top of any list of reasons to establish and properly maintain […]

Read More

Single Member LLCs–what, why and when?

Single Member LLCs–what, why and when?

What is a single member LLC and why would you want one? We have previously written a fair amount on LLCs generally, including what they are and why they can be useful legal entities. This post will focus on single member limited liability companies. As the name indicates, a single member LLC has one owner–and […]

Read More

lenders and LLCs–rental property stuff

lenders and LLCs–rental property stuff

It is usually a good idea to own rental property through an LLC. As the name suggests, an LLC is designed to limit liability. Think of a limited liability company as a legal liability firewall vehicle. In other words, if some sort of legal claim arose from the operating of your rental property (say a […]

Read More

Buy-Sell Agreements: Mistakes to Avoid (Part 2)

If you are in business, you almost certainly need to consider some sort of buy-sell arrangement. Don’t take my word for it, listen to the contributing writers are Forbes.com.  Though this article is not new, the applicability of the February 2011 article by Robert W. Wood, titled “In Business, Get a Buy-Sell Agreement!” has not […]

Read More

phantom equity–what and why?

phantom equity–what and why?

Phantom equity can provide the best of both worlds for owner and employee. There is nothing pejorative in the use of the terms “phantom equity” or “synthetic equity.”  Rather, these terms just reference the fact that phantom equity has some attributes akin to actual equity, while at the same time it is in many respects […]

Read More

begin with the end in mind–Covey’s wise counsel applies in business arrangements

begin with the end in mind–Covey’s wise counsel applies in business arrangements

At the outset of a promising business venture, nobody wants to think about how it will eventually end. However, that is exactly the time to consider such things.  Perhaps too somber a thought for a Monday morning, but the reality is that “all good things must come to an end”.  On the bright side, the […]

Read More