Where should I incorporate?
This is a question that I am often asked, and although we can explore the legal issues as to where you should incorporate, there are non-legal issues to consider as well. People often hear advertising focusing on “Incorporate here, it is tax free!” The problem with the advertising is people don’t really understand how things work, and that will end up just costing more money when their only focus is to save money, and that just leaves people feeling ripped off.
Continue reading Where should I incorporate? (Part 1)
There are many things that can cause someone to move, and depending on the reasons, the method, or other decisions, it may be appropriate to update a trust or a will. Some of the reasons for moving, may be a reason to review, for example, is the move because of a change in marital status (marriage/divorce)? Is the move because you’re having another baby and need more room? Is the move because you were just hired in a fantastic new job? Were you just recruited to play on a professional sports team? Did you just win the lotto? Continue reading Do I need to update my estate plan if I am moving?
Proper estate planning can help save time, save money, and protect the privacy of an estate. Probate expenses can have a wide variance depending on where you live and how much you have in assets. Some states, like California, have specific fee schedules based on the assets you own upon your death. Other states, have subjective fees where the probate statutes simply state that the fees must be reasonable.
These fees for Probate also are based only on assets and ignore any debts, which this means if you own a $500,000 home, and owe $450,000, the probate fees are based only on the $500,000 value of the home, ignoring the mortgage. One thing to keep in mind while reading this is that a properly executed trust can avoid Probate entirely, negating these fees.
Continue reading How much does it cost for Probate?
In part 2, we explored some methods to limit liability for your business with limited partnerships and limited liability companies. In Part 3, we will explore Corporations and tax considerations in business formation.
The Corporation, according to Black’s Law Dictionary, is an entity having authority under law to act as a single person distinct from shareholders who own it and having rights to issue stock and exist indefinitely; a group or succession of persons established in accordance with legal rules into a legal or juristic person that has a legal personality distinct from the natural persons who make it up, exists indefinitely apart from them, and has the legal powers that its constitution gives it. A corporation is an artificial being, invisible, intangible, and existing only in contemplation of the law…[I]t possesses only those properties which the charter of its creation confers upon it.
Continue reading What do I need to know to start a business? (Part 3)