It is very important to maintain your business, and it is often something that is forgotten about while you focus on building your business and taking care of clients.
Often life changes impact your business that you may not expect. We will be exploring some recent issues we have come across that people should be aware of.
In Part 2, we discussed insurance protections for you. Now we will explore some less common methods for asset protection.
In Part 1, we started discussing automobile insurance to protect your assets from an accident vehicles. Now we will flip the coin and explore how higher limits on your automobile policy also provides better protection for you and your passengers.
People try not to think about the risks and dangers in life, and their risk of losing their assets. There are many things that can happen that would put your assets at risk, many of which can be caused by others through no fault of your own.
After you establish an estate plan, you will likely have two documents that others may need to rely on. The first is the Power of Attorney and the second is a Certificate of Trust. Both of these documents need to be relied upon by others.
The untimely passing of a loved one is difficult enough, let alone getting through the legal nightmare that is probate. First, the main functions of probate are to collect and manage all the assets subject to probate and to pay off any debts or taxes owed against the estate. To prepare for this administration of the estate in court you most likely will need an attorney. However, once you found that attorney, how do you prepare for that first meeting?
Choosing what type of entity your business will be is an essential part of business planning. A partnership is two or more people working together for a profit. There are two basic types of partnerships, general partnerships and limited partnerships.
There is no requirement to create a partnership agreement, however it is smart to do so. A Written partnership agreement helps to avoid misunderstandings between partners and a failure to have a written agreement will result in default rules based on the states statute. A written agreement also permits the partners to discuss various aspects of the business and expectations of the partners.
In Part 1, we discussed the non-legal issues that can influence where to incorporate, such as financial, convenience of where they are doing business, and continuing operations. Now we will discuss some of the legal considerations for where to incorporate. As we mentioned in Part 1, Delaware, Nevada, and Wyoming are three states considered corporate havens, so we will discuss some basic information about these three states.
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.
There are many things that can cause someone to move, and depending to 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
Estate Planning Attorney Blog