Asset Protection and Small Business

    Asset Protection and Small Business

    If you deal with the public, if you sell a product, if you are a licensed professional, own a business, have employees, sign contracts, are the director of a company, are a real estate agent, landlord, day care provider, consultant, or contractor then you are in a high risk profession which makes you a target for lawsuits.

    Establishing an asset protection plan is no longer an option but a necessity. In fact, an asset protection plan will not only protect you in the event that you are sued, it will play a major role in preventing you from being sued in the first place.

    Since most lawyers work on a contingency basis they want to make sure the person they are suing is going to have substantial assets to cover their fees. If an attorney was looking to see if you were “worth” the effort and discovered you had an asset protection plan in place, many times they wouldn’t proceed any further.

    • Alter Ego Doctrine

      Alter Ego Doctrine Definition-corporation used by an individual to conduct personal business. It’s illegal. In alter ego scenario, individuals will be held liable to the corporation. See also piercing the corporate veil.

    • Business Deductions

      Small Business Deductions: The cost of doing business is an important part of calculating your Small Business Tax Deductions and/or your Home Business Tax Deductions. Use this checklist to ensure that you're maximizing your income tax deductions in this category of business expenses.

    • Business Formation

      There are a number of business structures available for businesses.

    • Copyright

      Copyright is a legal protection for the creator or of a creative work. This protection allows the creator to control how the work is used and by whom. Also a bundle of exclusive rights conferred by a government on the creator of original literary or artistic works such as books, articles, drawings, photographs, musical compositions, recordings, films, and computer programs. International in scope, copyright grants the creator reproduction, derivation, distribution, performance, and display rights.

    • Corporate Formalities

      In order to maintain personal limited liability, it is essential these described actions be avoided. Courts in recent years have found ever expanding reasons to hold directors, officials and shareholders personally liable for corporate responsibilities. Among other activities courts have found that may impose personal liability are improper corporate guarantees of loans or contracts benefitting an officer, timing of the sale of a controlling interest in the company for self-benefit, profiting from inside information, transactions with other businesses which may constitute conflicts of interest, unreasonable loans to company officials, and extension of unwarranted credit.

    • Dissolving a Small Business

      A corporation or other business entity may cease operations for many reasons and in a number of ways. When a business is terminated or its legal status changes, there are licensing and regulation requirements which must be met. There are also opportunities for improving the economic prospects at termination for owners and creditors through legal provisions of state and federal laws.

    • Foreign Corporation

      When your Foreign Corporation expects to transact business outside your state of formation, your company may be required to qualify as a "foreign corporation". There are many "company formation companies" that can file the necessary paperwork to qualify your business as a foreign corporation in any of the 50 states.

    • Foreign LLC

      When your company expects to transact business outside your state of formation, your company may be required to qualify as a "foreign LLC". There are many "company formation companies" that can file the necessary paperwork to qualify your business as a foreign corporation in any of the 50 states.

    • IBC - International Business Corporations

      An Offshore Corporation or International Business Corporation (IBC) is a separate legal entity similar to a domestic incorporated company, created under the authority of a statute. The primary difference is the allowance in certain "Havens" of a tax-exempt status, in order to attract new business to their otherwise remote location. A Company is a separate legal "person" for tax reporting purposes.

    • Key Man Insurance

      Key Man Life Insurance If you or any other individual are so critical to the operation of your business that it cannot continue in the event of your illness or death, you should consider key man insurance. This type of policy is frequently required by banks or government loan programs. Key Man Insurance also can be used to provide continuity in operations during a period of ownership transition caused by the death or incapacitation of an owner or other "key" employee.

    • LLCs and Small Business

      LLC and Taxes- An LLC is not a separate tax entity like a corporation; it is what the IRS calls a pass through entity, like a partnership or sole proprietorship. All of the profits and losses of the LLC pass through the business to the LLC owners, who report this information on their personal tax returns. The LLC itself does not pay federal income taxes, but some states do charge the LLC itself a tax.

    • Patent Protection

      A patent is the grant of a property right to the inventor, issued by the Patent and Trademark Office. The term of a new patent is usually twenty years from the date on which the application for the patent was filed in the United States. The right of a patent is the right to exclude others from making, using, offering for sale, or selling the invention in the United States. Basically, a patent gives the owner the right to a monopoly on the use and sell of the invention for a specific period of time.

    • Piercing the Corporate Veil

      Piercing the Corporate Veil Officers, directors and controlling shareholders have a general fiduciary duty of loyalty and care which should govern all their corporate conduct. Unless they breach that duty by gross negligence or acts in bad faith, they usually will have no personal liability to third parties. Third parties have to show personal wrongful conduct on the part of a company official or director to hold them personally responsible, extra-corporate actions which would support application of the legal doctrine known as "Piercing the Corporate Veil."

    • Section 179 Deductions

      With the Section 179 Deductions property for business has a useful life of more than one year, the cost must be spread across several tax years as depreciation with a portion of the cost deducted each year.

      But there is a way to immediately receive these income tax benefits in one tax year. The provisions of Internal Revenue Code Section 179 allow a business, sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased.

    • Small Business Insurance

      Small Business Insurance - - Some types of business insurance coverage are required by law, other simply make good business sense. The types of insurance listed below are among the most commonly used and are merely a starting point for evaluating the needs of your business.

    • Special Allocations

      Special Allocation of Profits IRS rules must be followed if you want to divide profits and losses in a way that's disproportionate to the owners' interests in the business(Special Allocation).

      The one class of stock restrictions and the complex regulations governing S Corporation status do not apply to LLCs, thereby allowing flexibility in planning distributions and special allocations. The LLC operating agreement can provide for special allocations of most items of income and deduction.

    • W2 vs 1099

      For most of us the actual difference between 1099 Independent Contractors and W-2 Employees is clear cut for several reasons. But there are many of us out there that have never encountered it or never even thought to discover and understand their differences. In this article, I will convey to you the proper and necessary information so that you may determine which situation is best suited for you.

    • Spyware

      What is Spyware? - Spyware is a program that is introduced into your system and gathers information about you, without your knowledge or consent. Spyware has evolved into an insidious threat to everyone. How do you get spyware? It can enter by way of e-mail, downloads, or even if you simply visit a web site. These agents, in many cases, steal your passwords and credit card information, they stay busy loading pop-up ads and other spyware, until your computer slows to a crawl. Constant crashes. Untreated, your computer will simply stop working.

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