Wednesday, October 31, 2018

5 Reasons an LLC Is Right For You


As a business owner, you can run your business as a sole proprietorship, or it can be operated as a formal structure, for example an LLC. Forming LLC as the business structure is an exceedingly good choice for the average entrepreneur. Managing your company as an LLC brings many benefits.

Following are just a few of many reasons to contemplate having an LLC, if you are a small business owner:

1. Protection of personal assets - As a business owner, you are more apt to be sued. You need to protect your personal assets from those of your company, so your personal monies are protected in case a lawsuit is brought against your company. By starting LLC that is correctly setup, you are usually protected.

2. Have a professional image - Nothing says professional company like a legitimate business structure. Just about anybody can start a company, but it is the people that go the extra distance by setting up a business structure show how serious they are about their company, and people take notice of this.

3. Trust - If your business is an LLC, you are making it particularly easy to discover suppliers in which to do business with you, and particularly easy to get a business loan. Operating your business as a profession, and not a hobby, is a wonderful way to gain trust with those companies that you need to work with.

4. Low audit risk - Sole proprietorships are more at risk to facing an IRS audit than LLCs. This most likely has something to do with the fact that a person might be using the business as an excuse to get some tax benefits, though they would get more if they actually had an LLC and the IRS is onto these people. However, if a person has taken the effort of LLC formation, it is likely they are in business for all of the right reasons.

5. Business flexibility - When operating as an LLC, you have greater choices in how to handle operating your business. Adding additional owners is a simple process, which is not possible as a sole proprietor. A limited liability company is a very flexible business structure that gives a variety of options on how you wish to manage your company.

If you are going to run a business, then you should do what you can to run it as effectively as possible. Making use of an LLC as your business structure has many virtues, even more than those listed in this article. Treat your business right and make it an LLC.

Article Source: http://EzineArticles.com/?expert=Will_Karter

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Tuesday, October 30, 2018

Understanding a Power of Attorney for Finances


Carolyn Rosenblatt discusses a Power of Attorney for Finances. This important document may be necessary to help care for your elderly parents. It can prevent financial elder abuse.

Sunday, October 28, 2018

Power of Attorney



Rene at By the People in Fairfield CA talks about just some of the reasons for a need for a Power of Attorney. These documents can be really important aids in helping loved ones.

For any questions about the types of Power of Attorney, and what may be beneficial for your individual needs, call Rene or Tammy at 707-428-9871 and visit the website at http://www.bythepeopleca.com

Saturday, October 27, 2018

How Do I Set Up an LLC Without a Lawyer?


Limited Liability Companies (LLC) are business entities that got their start in 1977 and are considered to fit somewhere between sole proprietors/partnerships, and fully incorporated companies. Existing to fill the gap between corporations and sole proprietors LLCs can help to segment personal and business assets and liabilities while at the same time maintaining a simplified tax structure. An LLC is not corporations but is a company structure to operate like a corporation.

Liability

An LLC is in itself its own legal entity so long as it is treated as one. The LLC can assume obligations of debt. In other words the LLC, not the members, hold a loan and the liabilities that go along with it. If however the members of an LLC use the entity as their personal bank or for personal matters it is possible that the LLC will not be recognized as a separate entity if a lawsuit is filed.

Taxes

As far as taxes go LLCs are considered by the IRS as pass-through entities. This means income passes through the business and goes straight to the LLC members just as they would with a sole proprietorship or partnership. These profits or losses are filed on each individual's tax return. A caveat to this is that LLCs can be taxed as a corporation if the members elect to do so. So, if treated appropriately an LLC can shield its members from the liabilities of a corporation without assuming the tax overhead a true incorporation must maintain.

How to File

If you are thinking about forming an LLC for your business, spend the next 20 minutes educating yourself on the difference between Sole proprietorships, LLCs, and S corporations. My guess is that for most people starting out as a sole proprietorship will be sufficient for current needs and much cheaper than filing for an LLC.

If you have done your homework and have decided that an LLC is the way to go, what next? The steps to filing an LLC are not complex and although requirements vary from state to state, setting up an LLC is a simple process that can usually be done in an hour.

  1. Articles of Organization

    The first step is to contact your secretary of state and obtain the required form for filing a LLC. In some cases this will be a simple fill in the blank form. The state of Washington for example has an online application. The processes guides you through establishing a legal name, completing the certificate of formation, establishing the registered agent, defining the members, and guides you through the initial annual report. The fee for WA is roughly $200.00, additional costs may apply depending on how you file. Google your secretary of state to find out more of the specifics.

  2. Registered Agent

    As you fill out your articles of organization you will be required to define the registered agent for the LLC. In most cases this will be you. The registered agent is the person or business that is designated to receive important documents on behalf of the LLC. The most appropriate individual for this is generally the one spear heading the business.

  3. Operating Agreement

    The operating agreement is the internal agreement between the members of the LLC. It is not required to form the LLC but it should be drafted to state the rights and responsibilities of the members. The operating agreement should contain but is not limited to the following;

    • Capital Contributions. How are the members expected to make capital contributions if the business needs additional capital?
    • Management Decisions.When the members are faced with important management decisions, does each get one vote, or do they vote according to their percentage interests in the LLC? Majority shareholders may feel they deserve a larger say.
    • Financial Withdraws. How do owners go about draws from the profits of the business?
    • Buy Out/Cash out. How do members leave the LLC? Will they receive an immediate payout of their capital contributions?
    • Compensation. If a member does leave how much should they be paid?
    • Share. While there are not actual shares within a LLC it should be defined how or if a departing owner is allowed to sell an interest to an outsider?

Publish a Notice

Some states require a notice of intent to be published. This can be as simple as running a classified ad in your local paper. Specifics on this will vary and your secretary of state can provide you with the steps required.

Licensing

The last bit to think about is obtaining other appropriate insurance, permits, and licenses for your new LLC. Each industry had its own unique set of requirements so be mindful of this once your business is established.

Conclusion

LLCs are considered by many to be a great way to establish a small business. There is little required to get one started and protection they provide could be priceless. That said an LLC may not be needed for everyone. Only you know the entity type most appropriate for your business.


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Friday, October 26, 2018

LLC Information: The Basics of a Limited Liability Company


You will find a lot of LLC information on the Internet about the limited liability company. This legal entity has become the most common and popular of all other choices because it was specifically created to be the most flexible entity available.

As a result, it can be used for small business, real estate, holding and managing any property, family and estate planning, and joint ventures. One can be really simple such as for a single owner small business or an LLC can be used to handle very large and complex activities. For example, Fidelity Investments is an LLC which is owned by many owners and manages billions of dollars of assets.

This Article covers the basic attributes of this amazing legal vehicle.

CREATED BY LAW ONLY

A Limited Liability Company is a separate and distinct legal person that is created at the state level. It is only formed once a state has acknowledged its existence.

And, in order for a state to establish one, there must be a document filing made by an organizer. The filing is usually called the Articles of Organization and it must strictly comply with the requirements of a state. Each state has its own set of requirements and disclosures and fees.

PERSONAL LIABILITY PROTECTION

Once formed, an LLC provides its owners with legally endorsed personal limited liability protection from the entity's debts and obligations. This feature is similar to the corporation.

If you are worried about personal exposure to law suits arising from your business, you should form a limited liability company. For example, you open a store-front business that deals with the public directly, you may worry that the commercial liability insurance you have might not fully protect your personal assets from potential slip-and-fall lawsuits or even claims by suppliers for unpaid bills. Running your business as a Limited Liability Company will give some protection against and other claims against your business.

PASS THROUGH TAXATION

If the entity is owned by just one member, then there is no added tax complexity. The income generated by the LLC is passed through to the single owner and reported on his or her personal return. Even if it is owned by multiple members, profits and losses are normally passed through the owners as if it were a partnership. But unlike a general partnership, on owners are subject to personal liability because of ownership.

This tax benefit is a significant one. The corporation, another alternative, offers the same personal asset protection but is subject to what is known as double taxation. While there is an option for elect for a corporation to be taxed as a pass through (single layer), there are quite a few requirements and restrictions. With the LLC, your entity will automatically qualify for the best tax treatment.

SIMPLE TO MANAGE AND OPERATE

Another great feature is that you can tailor the management and ownership structure of a limited liability company to suit your needs. There are very little legal mandates and this makes it easier for anyone to use one to meet their specific purposes.

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Thursday, October 25, 2018

Wednesday, October 24, 2018

Understanding the Difference Between a Will and a Living Trust


When planning for the future of your children as you get older, there are a few options on how to pass on your assets such as property, life insurance, stocks, etc. The two major ways of stating and distributing your assets after your passing is with a living trust or will. When you hear the words trust fund or wills, it refers to estate planning. Although there are different trusts out there, the main one I will focus on is a living trust.

Will

A will is a document that is created to help distribute assets and properties to a beneficiary after one passes away. With a will, it will be submitted through a probate process, which is a court process. In this process, the courts will validate the will and ensure that all the instructions are followed properly while also repaying any creditors. The downfall to a will is that it becomes public so anyone can see the distribution of your assets to your selected beneficiaries. On top of not having privacy, it could take several months to even years for the court to sort everything out!

Living Trust

A living trust is a legal document that states three parties: Grantor/Trustor, Trustee, and Beneficiaries. The grantor/trustor is the individual or couple who establishes/creates the trust. The trustee is the person nominated to be in control of the trusts assets. In many cases, the trustee is the same as the grantor/trustor. Beneficiaries are those at the receiving end who will benefit from the trust. A trust is beneficial to most people who have property worth $100,000+ and/or those who have large amounts of assets. In certain states, properties at $100,000+ can be subject to legal fees in the probate process. With a living trust, it bypasses the whole probate process and all assets can be immediately accessed by the beneficiaries. As opposed to a will, a living trust is private so it does not go through a probate process, therefore it is NOT a public record. Things that can be listed in a living trust include: stocks, bonds, real estate, life insurance, personal property, etc.

A trust is beneficial for estate planning for those who have large amounts of assets. By establishing a specific living trust known as an A-B Trust, an individual can reduce the amount of taxes paid significantly. For example, in 2012, the current estate tax is $5.12M with a cap at 35% over the $5.12M. In an A-B Trust with a couple passing their assets to their one kid, they would designate half the fund to the surviving spouse and the other half to the kid. The surviving spouse and the kid will then each receive a tax break of $5.12M giving a sheltered total of $10.24M from estate taxes. When the surviving spouse passes, then his/her half is giving to the kid who is then subject to another $5.12M tax break. Unlike a trust, a will however will be only have a tax break of $5.12M.

Conclusion

When comparing the differences of having a last will versus a living trust, it shows that the trust comes out on top. A trust will help to give privacy, immediate access to assets from beneficiaries, AND tax breaks. For those who are near the age of deciding what to pass on to their children or know someone in that situation, help them understand the difference of the two and sway them toward a living trust if feasible!

Article Source: http://EzineArticles.com/?expert=Jonathan_R_Wong

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Tuesday, October 23, 2018

DUI Expungement Process - Steps to Clear Your DUI Record


If you are convicted of DUI, you may want to expunge your DUI record in order to get a job, loan, house, etc. Expungement refers to the process of removing or erasing your DUI records. You are required to petition the court in order to get your records expunged. This article discusses steps to clear your DUI record by covering the whole process from petitioning to obtaining expungement. Each state's expungement laws vary; therefore, this article gives you a basic idea on the process.

DUI expungement process:

1. Where to file a petition for expungement?

You need to file a petition for expungement in the superior court in the county where your DUI arrest occurred.

2. What are the grounds for denial of expungement?

You can be denied for expungement:

- if you haven't completed probation.

- if you didn't show a good reason to expunge your DUI record.

- if you are convicted of severe felony.

- if a great deal of time has passed since your arrest or conviction.

3. What are the grounds for acceptance of expungement?

You are allowed to expunge:

- if this is the only conviction on your record.

- if you didn't spend any time in state prison.

- if you have rehabilitated yourself.

4. How to file for an expungement?

- Do you need a lawyer?

You don't necessarily need a lawyer for expunging your records. It's just that this process involves a lot of paperwork and if you have a lawyer by your side, he can give you advice regarding that. If you don't wish to hire a lawyer, you should learn all the procedures that are required to get this process done.

- How long does it take?

The entire expungement process could take anywhere from 4 to 6 months.

- What is the filing fee? 

The filing fee may vary from $50 to $400 depending on your case and your state.

- What forms do you need to fill and where to get them?

You need to go to your county courthouse and ask the clerk for the expungement forms. As mentioned above the forms may cost around $50 to $400. The clerk may give you the following forms: 1. Expungement petition, 2. Affidavit or proof of service form.

5. What happens after you file the petition for expungement?

After you file the petition for expungement, a copy will be sent to all agencies that have your records like arresting agency, the county attorney, the city police department etc. They may accept or refuse your request. If they accept, the court will grant your petition without hearing. If they refuse, a hearing will be held and you are required to attend. (This law can vary from state to state). You will be notified of hearing date through the mail. In some states, though, the court sets the hearing date, while in others you have to pick the date. You must ask your clerk beforehand regarding how your state's county court hearing date is set.

6. The Court hearing and decision:

Your petition for expungement may or may not be granted. If you won the expungement hearing, you must check after 60 days to see for yourself whether your records show up during a criminal record check. The 60 days period is when the court orders all the agencies to seal your record. However, if you lose your hearing, you may need to ask for an expungement once again.


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Monday, October 22, 2018

Durable Power of Attorney



Have you ever thought about what would happen if you became unable to make your own decisions, perhaps because of illness or medical condition, such as a stroke or coma? Using a relatively simple legal document known as a Durable Power of Attorney you can legally empower another person -- such as a trusted relative or friend -- to act in your behalf, even if you become physically or mentally unable to manage your own affairs.

Sunday, October 21, 2018

Saturday, October 20, 2018

How Much Does Probate Cost and How Long Does It Take?


The answer depends on the complexity of the estate and the required probate procedures in your state.

Friday, October 19, 2018

California Estate Planning Basics


California estate planning is essential for residents of the Golden State. Basic strategies should encompass executing a last will and testament; establishing a healthcare proxy; and designating power of attorney rights. Dependent on estate value, establishing a trust can further protect inheritance assets.

California estate planning strategies must comply with state and federal laws. California has some of the most complex probate laws in the country, so it is best to work with a qualified estate planner or probate attorney.

Probate is used within the US to settle estates that are not protected by a trust. The process varies depending on if decedents engaged in estate planning procedures prior to death. When individuals die without leaving a Will, the estate settlement process requires additional time and exposes the estate to a higher level of creditor claims or the potential for heirs to contest the Will.

The last will and testament provides directive as to how estate assets should be distributed. It is also used to appoint a personal representative charged with duties required to complete estate settlement process. Without these written directives, the estate must be settled according to California probate code.

The timeliness of estate settlement depends on various factors. One of the most prevalent is estate value. In the state of California, estates appraised with values of less than $100,000 are usually exempt from probate if a legal Will has been executed and filed through court.

The estate must undergo a 40-day waiting period to avoid probate. Afterward, the personal representative must present a legal affidavit to the court before distributing inheritance gifts to designated beneficiaries.

When decedents do not leave a Will the estate is required to undergo a probate proceeding to determine rightful heirs. This is particularly important to understand if California residents do not want to bequeath gifts to direct lineage relatives. In order to disinherit relatives the Will must include a disinheritance clause which states the reason why heirs are not entitled to estate assets.

The purpose of including the disinheritance statement is to minimize risks of heirs contesting the Will. It is not uncommon for disinherited relatives to claim the decedent was under the influence of another person or was of unsound mind.

Contesting a Will can freeze assets in probate for months on end. This act can force personal representatives to sell inheritance assets to cover legal expenses. Defense fees can easily bankrupt small estates and leave nothing for designated beneficiaries.

In addition to protecting assets, California estate planning is the most effective strategy for establishing healthcare proxies. This document allows individuals to document the type of medical treatment they do or do not want to have if they are incapable of making decisions due to illness or injury. Healthcare proxies include 'Do Not Resuscitate' (DNR) orders, as well as providing directives regarding life support and delivery of nutritional intravenous feedings.

Estate planning is also used to grant Power of Attorney rights. POA is an important decision that should not be taken lightly. The person granted with POA powers should be someone who can be trusted to make smart financial decisions, and make difficult decisions on your behalf if you become incapacitated.

Establishing California estate planning strategies is one of the best gifts to leave loved ones. Without written directives, decisions surrounding your estate will be left to the courts and chances are they won't be what you would have wanted. Additionally, putting affairs in order can reduce family discord and allow for efficient distribution of inheritance gifts.

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Thursday, October 18, 2018

Estate and Retirement Planning - How Can My Estate Avoid Probate?


If you are a retiree, you likely have heard many claims made about probate problems. The word itself may even fill you with dread. If you are planning your estate, there are some things you should consider concerning probate. In this, as in all things, it is important to take a balanced approach. Let's review some of the issues pertaining to probate. Then you can decide if you need to approach your estate planning differently.

What is the purpose of probate?

You have heard this word many times, but may never have considered what it means. In legal terms, probate is the period of time during which a will is proven authentic or valid. The purpose of probate is to distribute an estate according to the decedent's wishes described in his or her will. Typically, the first step of probate is to use the person's probate assets and property to pay all debts. After that, any remaining assets and property are distributed to persons named in the will. There may be costs associated with the probate process.

Probate ensures that your wishes for the distribution of your estate are carried out upon your death. Probate is a public process. If your estate is of any size, your heirs could suddenly have new friends trying to advise them on how to manage their newly inherited assets.
People often assume all assets are subject to probate, which raises the following question.

Are all assets subject to probate?

No. Some assets are excluded from probate. An example would be assets that are held in joint ownership with rights of survivorship, such as your personal home. Other assets not subject to probate are those governed by a beneficiary designation. This would include assets such as your 401(k), IRAs, life insurance policies, and annuities. Additionally, assets held in a trust are not subject to probate. If the majority of your estate assets are held in accounts of this type, you may not have that much to be concerned about.

What about my brokerage and bank accounts?

These types of accounts can be set up to transfer on death (TOD) to a beneficiary. This designation allows you to pass securities and banking accounts directly to another person (your TOD beneficiary) upon your death without having to go through probate. By setting your accounts up this way, the executor or administrator of your estate will not have to take any action to ensure that your accounts transfer to the person you have designated. The TOD beneficiaries will have to take steps to retitle the accounts in their name, but this is not a very cumbersome process.

As you can see, probate may not be as bad as you have heard. There are many things to consider during the estate planning process.  

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Wednesday, October 17, 2018

What Happens If You Become Incapacitated Without A Durable Power Of Attorney


A General Durable Power Of Attorney is an estate planning document that is meant to be in place for if you become incapacitated or disabled and are no longer able to speak for yourself or carry on your financial affairs. The durable nature of the power of the attorney comes into play when a trusted person that you name in the document steps into place for you to manage your assets and handle your affairs for you until you recover or for the rest of your life. What happens if you do not have this important document in place and you become disabled or incapacitated and are no longer able to act on your own behalf?

If you become incapacitated in most states without a General Durable Power Of Attorney in place for yourself then the Probate Court in your county steps in and decides who would be the person to handle your affairs that would have named in your power of attorney if would have properly made one. The probate court in your county of residence most likely must appoint both a Guardian and Conservator for you. A Guardian is appointed to look after your health and well-being and make decisions that are in your best interest of your person. A Conservator is appointed by the Probate Court to look after your money and make sure that you are not being taken advantage of financially. The conservator must file strict accounting reports with the Probate Court and will most likely have to post a bond in case any money is mishandled. This process can be extremely costly and drain your assets before you get to enjoy them again after you regain capacity or pass them on to your loved ones.

A General Durable Power Of Attorney eliminates the need to appoint a Guardian and Conservator as a trusted person is named and given the powers to carry out your needs if you become incapacitated. This document allows you to be in control of your own affairs through anther instead of the choice being out of your hands and made by a government agency at a much greater cost of time and money. While it is not pleasant to think of yourself being incapacitated at any point in your life, it is a reality that most people do not die right away and go through some period of disability. Protect yourself by planning ahead.


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Tuesday, October 16, 2018

Roadblocks to Surpass When Starting an LLC Business


Some folks have a lot more excuses than reasons to start an LLC business. Some optimists would prefer to label them as roadblocks that serve well as challenges. Taking this perspective will help business owners persevere despite the challenges that come their way. Here are some of the roadblocks that anyone starting an LLC business in are likely to face:

- Bad economy

Even when the economy is good, you might still have reasons not to take the entrepreneurial jump. It is a fact, however, that opportunities abound even on a bad economy. The challenge is how to spot these opportunities so that your LLC business can flourish.

- Financing

Money is not always enough to start an LLC business, or elsewhere for that matter. Fortunately for those who wish to put up their own LLC, there are banks that offer financing instruments that could provide the necessary operating capital.

- Location

There will be no shortage of business-worthy locations as long as you are offering the right products and services in the right place where your customers are likely to be at. School fairs and carnivals would be ideal for a food kiosk or a novelty shop. Just be where your potential customers could possibly hanging out.

- Marketing plan

Of course, a big factor to consider in setting up your LLC business is your marketing plan. How are you going to promote your products and services to your customers? What messages would be compelling enough for them to buy your products or avail of your services? These are just a couple of questions you should ask yourself. The answers to these questions should be factored in when you draft your marketing plan.

- Suppliers

Most small businesses do not exist on their own. In most cases, you will have to rely on suppliers whether for your raw materials or for the products that you are going to distribute. Your partners in your LLC business are your suppliers. Make sure that you find those that can match your customer demand. If necessary, you should be able to find several suppliers to ensure that you will not run out of the products and services that you intend to sell to your customers.

- Number of employees to hire

Hire only based on what you can afford. Some new start ups would hire more employees than what they could afford on their budget. They hire people so they don't have to do all of the work themselves. If there are some tasks that you can do yourself, do it yourself for the meantime and keep whatever money you could instead of paying an additional employee who might not exactly be critical for the operations of your LLC business.


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Sunday, October 14, 2018

Living Trust and Wills - By the People



Living Trust or a will? Rene talks about some of the differences and what sets one apart from the other to help you make the best decision for your needs. Call Rene or Tammy at 707-428-9871 with any questions you may have, and see their website at http://www.bythepeopleca.com

Friday, October 12, 2018

Probate Court Will Appoint a Personal Representative to the Estate


The probate court will appoint a person to represent the decedent and to administer the decedent's estate; this is called a personal representative. This person has a variety of names in the absence of statue to the contrary depending on various circumstances. This being, if the decedent died testate and designed such a person in his will. The court usually will appoint that person the executor (man) or executrix (woman).

If the will does not so designate any such person or the person so designated is unavailable or is unqualified to be the personal representative; the court will appoint someone else as the appointed one is called the administrator. If the personal representative cannot complete the duties, the court will appoint a new personal representative.

The responsibilities of the personal representative is to administer the decedent's estate. This is in accordance with the legal directions as expressed by the testator in the will. All is within accordance with the statute of descent and distribution with respect to an intestate estate.

This involves the collection do to the decedent's property which forms the decedent's estate. Payment of claims against the estate is distribution of the remaining property. Directions are provided in the will or pursuant to the statute on descent.

The personal representative must post a bond to assure that he one she properly carries out their responsibility, unless the will expressly waives the requirement of a bond. If you'll simply file a Living Will, then your family will not have to go through probate court system. This is if you have a small estate however, if it's a large estate then you'll probably have to go through probate.


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Wednesday, October 10, 2018

Do I Need a Will?


You can't take it with you. Unless you plan on living forever, there will eventually be a need to divide your property amongst the relatives and loved ones you leave behind. By having a will, you determine who gets what. Without one, the law will do it for you by the operation of statutes. Many people believe that they are not wealthy enough to need a Will. But if you own property that is titled (a car or house), after your death, those items cannot be transferred without opening an estate. If you don't have a Will, the cost of processing your estate goes up significantly.

When a person dies and leaves property behind, that property is known as an estate. In order to transfer ownership of the property in the estate from the deceased to surviving heirs, the estate must go through the probate process. A Will not only identifies who will inherit the property, but names an executor to administer the estate. Without a Will, not only will statutes determine who gets your property, but the court will have to appoint and administrator to handle the estate. This is a costly process.

The most obvious benefit to having a Will is controlling what property passes to which heir. This is important if there are pieces of personal property that you want to go to a specific loved one for sentimental or other reasons. A Will also allows you to place conditions on the bequest, such as that the heir complete higher education or attain a certain age, before receiving his or her inheritance.

If these benefits of having a Will are not enough to convince you to take action, then consider those who you are leaving behind. A Will invariably makes the probate process smoother and easier for the survivors. In addition to controlling exactly where the property goes, a Will names the person or persons who will "execute" the estate, meaning the person who will gather the property and distribute it to the named heirs. This is often no small undertaking - it can involve selling stock, closing and consolidating bank accounts, liquidating assets, and more. In drafting a will, you should be sure to select an executor who has knowledge of the property in your estate and the competence and willingness to perform the job, all of which makes for a more efficient probate process. Without a Will, the court must appoint an administrator (obviously not of your choosing) to perform these tasks. Unfortunately, this is more costly and can lead to disagreements amongst family members.

Article Source: http://EzineArticles.com/?expert=John_Aitchison

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Tuesday, October 9, 2018

Monday, October 8, 2018

Probate Process - What Is Probate? The Steps to Administering an Estate


Most people have heard the word probate before, but they might be wondering 'what is probate?' The probate process can refer to several things. The probate court determines whether or not a will is valid. If an executor is not named in the will, the court will assign an executor to perform those duties. However, the entire process of administering the estate of the deceased according to the will's instructions can also be referred to as probate. Many people think that an executor simply reads the will and hands out the bequests to the heirs. There is so much more involved in the duties of an executor during probate.

The actual court probate process is only a part of the responsibilities of the will's executor. The first duty is to file a petition to start probate in each of the states where the deceased owned property. Because each state has slightly varying probate laws, the answer to the 'what is probate?' the question will change a little depending on a specific state's legal code. However, there are some common events between states when it comes to processing wills and other estate administration. Before the executor of the will can even be formally appointed or approved, a petition has to be filed, a notice of petition must be published with a certain amount of lead time (usually at least 15 days), the legal documents must be given to the judge for approval, and the concerned parties (such as beneficiaries) must be notified.

Following these notifications, the court hearing will formally begin the probate process and approve the named executor of the will. After the court hearing, the executor needs to inventory all of the deceased's assets. This information has to be filed with the probate court. Next, all creditor's claims are addressed and paid off. The IRS also has to be paid. It is the executor's responsibility to file all taxes, including income, estate, and others, by their respective deadlines. The timelines are not adjusted due to the death of the taxee. What is probate? It's probably a lot more than most people realize.

Once all debts and taxes are paid, the executor of the will file a petition for the judge's approval of the distribution of assets to the beneficiaries. The concerned parties are notified, and there is a court hearing where the judge approves the distribution of assets. Finally, in the probate process, the executor transfers those assets to the beneficiaries. These steps are the main answer to the 'what is probate?' question.

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Sunday, October 7, 2018

Uncontested Divorce - Do You Know How It Works?


An uncontested divorce is a divorce in which both parties can agree to the terms of the divorce. With an uncontested divorce, both parties negotiate the terms of the divorce without court proceedings. One lawyer represents one of the parties and prepares the divorce documents. Generally speaking, the lawyer will meet with the party they are representing and start the divorce proceedings. The parties negotiate the terms until both parties are satisfied. There are advantages and disadvantages to an uncontested divorce.

An uncontested divorce is considerably cheaper than going to court. If you can negotiate the terms of the divorce agreement before contacting a lawyer to begin the divorce proceedings, the cost is minimal. It saves time for everyone involved. When facing a divorce, saving money is a huge benefit. This is money that can be used for making necessary changes and for living expenses.

An uncontested divorce can also help maintain a level of civility between the parties. If the parties to the divorce have an amiable relationship, it is best to try to protect that mutual respect, especially if there are children involved. Another advantage is the privacy that an uncontested divorce offers in contrast to court proceedings. The divorce will be a matter of public record, but the visibility of the negotiations and the actions taken is potentially private and limited by what the parties disclose in the documents.

Just because the parties do not immediately agree to terms of the divorce doesn't mean that they should put the decisions in the hands of a judge. It may just mean that more negotiations are needed. However, there are times when an uncontested divorce is not necessarily the best route. There are some disadvantages to uncontested divorces.

If one party is exerting power and control over the negotiations or if there is a history of domestic violence, then an uncontested divorce is usually a bad idea. The victimized party is not in a position to look out for their own best interest. An uncontested divorce does not ensure that the agreement will be fair and just. Therefore, if one party is unable to do this for themselves, an uncontested divorce is not for them.

An uncontested divorce will not work if the parties cannot tolerate each other enough to negotiate the terms of the divorce. If they can't have reasonably civil discussions and come to an agreement, then attempting an uncontested divorce is a waste of time. Sometimes, this hostility will lessen with time and an uncontested divorce will become a viable option.


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Saturday, October 6, 2018

Start an Online Business: Sole Proprietor, Corporation Or Limited Liability Company?


Who Is This Article For?

First, let's identify for whom this article is written. This article is for new entrepreneurs thinking about starting an online business which operates in the United States.

The information contained here is "entry level" for people just starting out in online business. It is not written for people in more sophisticated situations. That being said, let's get going.

Most new online business owners seem to "jump off the deep end" without giving much thought or doing much planning as to how they will operate their businesses.

That is a poor approach to starting a business. In reality, there are a number of considerations that need to be taken into account at the outset if you want to succeed with your online business and not expose yourself to problems down the line.

Forms of Business Entities

One of the first matters to consider is whether to form an entity to operate your business. Let's begin at the very basic level and quickly identify your options with respect to operating your business.

For most new businesses, your options are:
  • Sole proprietorship

  • Partnership

  • Corporation (S-corporation or C-corporation)

  • Limited Liability Company

There are other forms of doing business, but they are usually for more sophisticated enterprises, so we'll confine our discussion to the ones listed above.

Sole Proprietorship

This is the default option, one that many new entrepreneurs wind up using because they never really think about the issue.

Basically, a sole proprietorship is just you doing your thing. You and your business are not separated legally. That can be quite significant, as we'll see below.

Advantages of a Sole Proprietorship

Here are the advantages for choosing to do business as a sole proprietor:
  • Ease of Formation. A sole proprietorship is the simplest business format to form, because there is no formation. It's just you doing business as you. There is no separate legal entity within which you are operating your business. You may still require business licenses, tax id numbers, etc., but there is no separate entity to be formed and operated.

  • Low Cost of Formation. Since it is not necessary to form a separate entity to operate as a sole proprietorship, it is less expensive to get started because you don't have to pay an attorney or company to form a special entity for you and you don't have to pay any of the fees to you state that are required to form a corporation or LLC.

  • No Separate Income Tax Returns. Because there is no separate entity involved in the operation of a sole proprietorship, the IRS doesn't require you to file any separate income tax returns. You will normally just add a schedule (Schedule C) to your good old Form 1040 and file away.

Disadvantages of a Sole Proprietorship

Here are the disadvantages of operating as a sole proprietorship:
  • Personal Liability. This is the overriding disadvantage of doing business as a sole proprietor. Because there is no separation between you and your business, if you get sued all of your personal assets (house, car, investments, etc.) are at risk. Given the fact that we live in a litigious society where people are suing other people over ridiculous claims, and sadly prevailing sometimes, this is a major concern. If you end up with a judgment against you, you risk losing most of your personal assets.

  • Less "Professional" Image. Doing business as "John Smith" doesn't present the professional image in the business world that, for example, "World-Wide Multimedia, LLC" would. This may not be a major concern for you, but it is something to consider, especially if you are trying to get other businesses to recognize you as a joint venturer, affiliate, or member of their CPA network.

Partnerships

We won't spend much time on this one, because it is relatively rare in the online world. A partnership is an association of two or more people or entities for the purpose of engaging in business.
So, for example, if you and your brother-in-law want to start a business, a partnership could work. It is not something that is normally recommended, though, for reasons explained below.

Advantages of a Partnership

Frankly, in most situations there are none.

Disadvantages of a Partnership

Here are the primary disadvantages of a partnership:
  • Separate Tax Returns. Partnerships are required to file their own, separate income tax returns, so paperwork is increased without commensurate advantages being offered.

  • More Complicated to Form. Partnerships normally require paid assistance in the formation process, so costs are increased, again without offsetting advantages in most circumstances.

  • Increased Liability. This is the big one. A partnership does not protect your personal assets. Even worse, since you have one or more partners involved, you potentially become liable for their activities too, whether or not you actually participated in a given transaction. In addition, your partners can normally obligate the partnership to financial obligations and contractual agreements, sometimes without your knowledge. So, there is definitely increased personal risk to you financially in a partnership.

And, you must be cautious when pursuing business objectives with other people. You can end up in a partnership without meaning to.

Since there are normally no formal organizational requirements for a partnership, a handshake may be all that is required. Just the act of doing business and sharing profits and losses with one or more other people can result in the courts declaring you to be in a general partnership, whether that was your intent or not.

Corporations

A corporation is a separate legal entity that is formed to operate your business. It is that separation between you and your business that can be a major advantage.

You will hear two broad types of corporations discussed: C-corporations and S-corporations. Those distinctions are a topic for another article, but they will be mentioned briefly.

In a nutshell, a corporation is a corporation, the S-corporation/C-corporation distinction is merely an election made by a corporation as to how it wants to be treated for income tax purposes by the IRS.

Advantages of a Corporation

Here are the principal advantages of using a corporation to operate your business:
  • No Personal Liability. The main advantage has already been hinted at. A corporation is a separate legal entity from you personally. Assuming you set things up properly and adhere to the operational requirements of a corporation, if your incorporated business gets sued only the assets owned by the corporation are potentially exposed to the business's liabilities. Your personal assets are shielded from liability.

  • More Professional Image. As discussed above, a corporation presents a more professional image to the world than a sole proprietorship.

  • One or More Owners. The owners of a corporation are called "stockholders." The law allows a corporation to have one or more than one stockholder. S-corporations may not have more than 100 stockholders (at the time of this writing). C-corporations may have an unlimited number of stockholders.

Disadvantages of a Corporation

Here are the main disadvantages of a corporation:
  • More Complicated to Form. Articles of Incorporation and other formation documents must be prepared and filed with the state in which you incorporate. Normally, you will need paid assistance and there will be certain filing fees paid to your state, so there is expense involved. At least with a corporation you are getting the offsetting benefit of limiting your personal liability.

  • Requires Separate Bookkeeping. Since a corporation is regarded as a separate enterprise from you personally, you will be required to keep separate books and records for business and tax purposes. This may require an accountant or CPA to assist you in setting them up properly.

  • Separate Income Tax Returns. Generally, a corporation will be required to file its own separate income tax returns. You do not report the corporation's income and expenses directly on your personal tax return.

  • Annual Filing Requirements. You state of incorporation will require at least one annual report to be filed for your corporation, and there will be a small fee charged by the state in connection with that filing.

Limited Liability Companies (LLCs)

Limited liability companies are probably the most popular entities these days. They are gradually replacing corporations and the "go-to" business entity.

So as to not over-extend the length of this article, I'll just list the advantages and disadvantages without more discussion, since they are almost identical with the remarks about corporations. Where there's a difference, it will be pointed out.

Advantages of an LLC
  • No Personal Liability (See discussion under corporations)

  • More Professional Image (see discussion under corporations)

  • One or More Owners. An LLC's owners are called "members." The law allows an LLC to have one or more members.

Disadvantages of an LLC
  • More Complicated to Form (See discussion under corporations)

  • Requires Separate Bookkeeping (See discussion under corporations)

  • Separate Income Tax Returns. A multi-member LLC will be required to file its own income tax returns. For single member LLCs, there are some special opportunities with respect to how they are taxed for income tax purposes. Often, the single member can choose to have the LLC disregarded for income tax purposes. That does not, however, jeopardize your liability protection from lawsuits.

  • Annual Filing Requirements. (See discussion under corporations)

Summary

I think it's fair to say that limited liability companies are the most recommended entities, especially for online businesses. As a general proposition, they offer the same protection of your personal wealth from business liabilities that a corporation does, and LLCs are usually considerably more flexible as far as what the law allows in their management structure.

There are a lot of subtle nuances that professionals can debate when considering the pros and cons of the various forms of doing business.

In reality, though, the main concern for most smaller businesses is liability protection for the owner's personal assets.

Liability protection can be gained by using a corporation (S or C) or an LLC as the entity for operating your business. Liability protection is not gained by operating as a sole proprietor or in a partnership (formal or unintended).


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Friday, October 5, 2018

Power of Attorney - What Are the Options?


Business or personal matters often require giving power of attorney (abbreviated as POA) privileges to chosen individuals. POA authorizes the chosen individual to decide matters relating to finance or healthcare for another person who is not capable of deciding anything on his/her own.

Before giving such privileges to any person, you need to know how it works, as well as the rights given to that person. The person nominated for the purpose must be competent in making decisions, some of which may go against the wishes of other members of the family.

Law makes it obligatory to give POA only to persons who are at least eighteen years old. It is extremely important to select a person capable of taking difficult decisions relating to finance and health.

People can choose between different kinds of rights and responsibilities that they can transfer through a Power of Attorney form, depending on their needs. Every POA involves two persons, the 'Principal' and the 'Attorney-in-Fact.' The former is the individual who defines the contract, and the latter is an individual who executes the duties specified therein.

The most usual kind of contract is the Durable Power of Attorney. It's a legal document, authorizing the attorney-in-fact to take decisions concerning the finances and health, as stipulated by the Principal. This kind of POA remains in force until the Principal dies or revokes this act.

The other frequently made document is called the Non-Durable Power of Attorney. The attorney-in-fact is authorized to make decisions for certain transactions, which are specified in the act. This kind of POA is usually made when the Principal needs to undergo surgery or another medical treatment that could make them unable to make decisions. This POA is valid for a particular transaction and automatically expires after the operation took place.

A Healthcare Power of Attorney is required while authorizing an individual for taking medical decisions for the Principal. It essentially involves discussing the types of treatments to which the principal may be subjected to.

The Limited Power of Attorney is generally given to another person for selling or transferring some Real Estate or property in the possession of the Principal. The privilege expires after the completion of the transaction.

Most do not feel comfortable discussing such topics. However, the kind of treatment to be followed should be discussed in advance, in case anything unexpected happens. For instance, if someone doesn't want to be kept on a life support system when the brain is declared dead, he/she should specifically mention it in his/her healthcare POA. Else, the medical personnel is obliged to obey the state laws and continue with the regular medical treatment.


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Wednesday, October 3, 2018

Situations Where Your Last Will May Be Considered Void


Drafting a last will and testament is something we only hope to do one time. Creating a document that specifies our wishes after our deaths can cause some anxiety in that we are reminded of our mortality, but more than that making changes to a will can cause headaches if not done correctly. You also risk voiding your will under certain circumstances. In order to keep your friends and loved ones from inheriting any headaches along with your estate, it is important to know exactly what events can void your will.

If your will is judged void after your death, it opens the door to any number of disputes between family and friends as they argue over dispersing your assets. Charities you wished to benefit from your generosity may not receive the funds you set aside for them, and even your burial plans may be altered. It is important, therefore, to make sure you following everything to the letter. Here are a few situations that could lead to voiding your will.

1) You make unauthorized changes. When you complete a will, it is typically signed and witnessed, and notarized. If you make written additions or deletions anytime after that period, somebody could contest the validity of the will and cause problems. If you want to make corrections after the legalities are complete, you can either destroy the current will and start over, or draft a codicil to accompany the will you currently have.

2) You were not of sound mind when you wrote the will. Some people may be pressured or heavily encouraged to draft a document in order to bring peace of mind to your family. However, a will written under duress or other influence could be proven invalid if somebody believes you were not of sound mind at the time. You want to make it perfectly clear that your wishes are your own, and that you have not been forced to write anything you didn't want to write.

3) Changes in marital status. Depending on the laws in your state, a will drafted before a legal marriage or divorce could allow a party to contest your will if you do not have it changed. If you have a will ready and decide to marry or remarry, speak with your attorney about what needs to be done to ensure your wishes are kept intact.

Take care to know what factors could render your last will and testament void.

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Monday, October 1, 2018

Probate vs Non Probate - How Assets Pass at Death


Probate vs Non Probate - How Assets Transfer at Death. John D Williams discusses how assets transfer at death.