Making a Will - What You Should Know About Creating a Will

A will is an important document for any person to have. This document simply provides directions on how your property will be handled when you pass on. Many times, when people die without a will in place, a lot of misunderstandings can arise within the family and the community at large. It is therefore important to specify how one's property or estate will be handled to avoid these misunderstandings.

A will writing service is important to help you come up with your will. It is possible for you to write your will without any help but if you are not familiar with this process, you need guidance so that you can write a will correctly.

The first thing you need to do is identify a good will writing service that has the requisite experience and reputation to ease the process of making a will. There are a number of benefits that you will get when you work with a will writing service. Some of these benefits include:

• Correct Structure

Certain things are required when you are drawing up your will. You must indicate that you are of the right age and of sound mind. You must also indicate that this is your last will and testament. You still are able to amend your will at any time you wish to.

These services will also help you to understand technical terms used when writing a will. A man writing a will is called a testator while a woman is called a testatrix. The will has to be signed by the testatrix or the testator and signed by two other witnesses.

• Tax Implications

Certain assets or estates can have tax implications. If you leave your estate to someone else other than your spouse, they might be required to pay taxes on it. It is important to know this in advance and plan for it accordingly.

• Will Execution

Another important aspect to consider is the executor of the will. This is the person who will carry out the terms of the will should you pass on. The person who helps you write the will can also be the executor if they have that capacity. If not, you should name the person or company to carry out this function.

Making a will should not be a problem for you. With the right people to help you, this process will be easy. It will allow you to rest well knowing that your estate will be handled correctly when you pass on.

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What If Someone Objects to the Will?

What if someone objects to the will?

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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Can Someone Challenge My Will After I Die?

Can someone challenge my will after I die?

The Tax Benefits of a Limited Liability Company

A limited liability company, or LLC, is one of the most popular business entities today but also one of the newest. An LLC is unique in that it's a pass-through entity. The IRS does not consider an LLC a legal separate entity in terms of taxation, so all business income, losses, and expenses are "passed through" to individual owners to report on their personal income tax returns.

By default, a single member (or single owner) LLC is taxed as a sole proprietorship. An LLC with more than one member is taxed as a partnership by default. There are many tax advantages (as well as drawbacks) to forming an LLC instead of a corporation.

Flexible Taxation

One of the biggest benefits to forming an LLC is you can choose how you are taxed. This is one of the lesser understood advantages of a limited liability company. When you file your taxes, you can choose to file as a "disregarded entity" and get the default tax treatment or you can choose corporate tax treatment. If you choose the corporation taxation structure, your business will be taxed at a much lower corporate rate on the first $75,000 in income. Keep in mind an LLC's tax rate is completely dependent on the owner's income. If you have higher income, you will likely pay lower tax rates by choosing corporate treatment.

Lease Assets

With a limited liability company, you can lease your personal assets to the company. This means you can run your LLC from your home office and have the LLC leasing the office from you. Doing so means you are creating a business expense that you may be able to write off while improving your personal financial situation. This is a tricky area, however, as the expenses must be legitimate business expenses and you will need a formal lease agreement in place.

No Double Taxation

Corporations are subject to something known as double taxation, which means a corporation first pays taxes at the corporate level then again on income from dividends that are distributed to owners. LLC owners are not subject to double taxation; business income is reported on your personal income tax return and taxed once.

Tax Disadvantages

While there are certainly tax benefits to an LLC, there are drawbacks as well. LLC owners are required to pay taxes on their distributive share of the company's profit, even if they do not receive the distribution because the money stays with the business. Corporate owners are not required to pay taxes on business profits unless the profits are distributed (usually as dividends).

Finally, as an LLC owner, you will also be required to pay self-employment taxes, even if you are a single member LLC. Corporate owners who work as employees of the company, meanwhile, only pay half of this tax amount on their salaries while the corporation pays the rest.

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Understanding Probate in California

Probate is the legal process that settles the property of the deceased person and tells how it should be equally distributed among the heirs and beneficiaries in case there is no will. The rules and regulations of probate vary form state to state and each state can have a different procedure and hearing process for probate. Some general guidance might be similar in most states but it is always advised to take help of a legal advisor in case you need to understand the probate process in your locality. Moreover you should understand that every probate case is different depending on the amount of money involved in it. The different property, debts and people involved in it make the whole case different from one other. There is no way that the rules and results of one probate case can apply to other case. Normally people have a view point that probate can be an ugly scene but the fact is that it can be easy if all parties involved in it work together for a positive outcome and preserve the memory of the deceased person.

In most cases, the property of the deceased person is transferred to his spouse if the person has not made any will before his expiry but in some conditions due to the parties' involved the property cannot be transferred to the spouse directly. The probate court which hears the matter of probate cases will get involved if there any issues relating to the property of the deceased person. The case has to go through a legal framework and the final order of the court has to be addressed by each person involved in the case. Now, since every state has different law regarding the probate so the hearings of the case in the court can be different in each state.

If the deceased person has a will and has named a representative,all the assets will be handled by this person unless the judge deems this person unfit, etc.If there is no representative named in the will then the court appoints a representative who handles the property unless the decision is made. The appointed representative is called the administrator and has sole responsibility of handling the property.

The Probate Process

In the initial phase the administrator opens the case in the court. During this period he evaluates the property and collects all the property of the deceased person. Few items which come under contract of the deceased person are not held in probate and they pass automatically to the beneficiary. Any bank accounts or other things which has the clause of "payable on death" are transferred to the person named in the contract. Only those limited property that have no clear beneficiaries are accountable for probate process. After accumulating all the property, the administrator sends a legal notice to all parties involved in the case and pays all the debts and claims which remain outstanding on the deceased name. Then the administrator distributes the remaining property to the beneficiaries of the decedent as instructed in the court's verdict.

If there are any disputes during the process then the court hearing decided upon the matter and the final verdict has to be agreed upon by every parties involved in the probate process. Anyone can file the claim on the property and if the court declines the claim then the opponent can file lawsuit to claim the property. If the lawsuit is made then court has to take the case more formally and this is when major problems occur during the probate process.

Normally, probate process take a longer time and if the amount involved is huge then the process can be more problematic. But if all the parties involved work together to make a positive solution then probate process can be competed easily and the property is distributed equally among the heirs or beneficiaries.

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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

Limited Liability Company (LLC) - Definition and Explanation

A Limited Liability Company (LLC) is a very flexible form of business structure that combines elements of the typical corporation and partnership structures. By forming an LLC, you create a legal entity that provides limited liability to its owners. Often, these are incorrectly called a Limited Liability Corporation instead of Limited Liability Company. It is truly a hybrid business entity that can contain elements and/or characteristics of corporations, partnerships and even sole proprietorships, depending on how many owners are involved in the Limited Liability Company. An LLC, even though it is a business entity, is actually a type of unincorporated business and is not a corporation. The main characteristic that an LLC shares with a corporation is the limited liability protection that they both offer. The main characteristic that an LLC shares with a partnership is the pass-through income taxation that they both offer. It is, however, much more flexible than a corporation and is very well suited to single owner businesses.

You should understand that neither limited liability companies nor corporations always protect owners from liability. The legal system in the United States does allow a court system to pierce the corporate veil of an LLC if some type of fraud or misrepresentation is involved or in a situation where the owner uses the company as an 'alter ego'.

Flexibility and Default Rules

All LLC legal statutes include a phrase similar to "unless otherwise provided for in the operating agreement" and this allows for the flexibility the members of an LLC have in deciding how their LLC will be governed. Some statutes provide default rules for the governance of an LLC that are in effect unless an operating agreement has been adopted.

Income Taxation

For the purposes of the Internal Revenue Service and Federal income tax purposes, LLCs are treated by default as a pass-through entity. If the limited liability company has only one member or owner, it is automatically considered a "disregarded entity" for tax purposes and the owner is allowed to report the income from the LLC on his or her own personal tax return as a Schedule C. If the LLC has multiple owners, it is treated as a partnership and must file IRS form 1065. Partners will then receive a K-1 for their share of losses or income so they can report it on their tax return.

LLCs also have the option of electing to be taxed as a corporation, simply by filing IRS Form 8832. Then, they will be treated the same way as a regular C Corporation or they can elect to be treated as an S-Corporation. If it is treated as a C-Corporation, the entity's income is taxed before any dividends or distributions are given to the members and then taxation of the dividends or distributions will be taxed as income for the members. Some analysts have recommended the LLC taxed as an S-Corp as the best possible small business structure, because it combines the flexibility and simplicity of the LLC with the self-employment tax savings of the S-Corp.

Advantages

Here are the attributes of a limited liability company that are most widely viewed as advantages:

•Check the box taxation. LLCs have the option of being taxed as a sole proprietor, partnership, S-Corporation or C-Corporation, which provides a great deal of flexibility.

•Limited Liability. The owners of an LLC, who are known as members, are generally protected from some or all liability related to the acts and debts of the LLC, depending on state laws where the LLC formation took place.

•Administrative paperwork and record keeping is significantly simplified compared to a corporation.

•Pass-through taxation is automatic, unless the LLC elects to be taxed as a C-Corporation.

•Profits are taxed at the member's personal level, rather than at the LLC level by simply using the default tax classification given by the IRS.

•In most states, LLCs are generally treated as being a totally separate entity from the LLCs owners.

•LLC's can generally be set up with only one person being involved.

•An LLC can assign its membership interests, and the economic benefits of those interests can then be separated and assigned, which provides the economic benefit of distributing the profit and losses of the company, like in a partnership, without actually transferring the title to the interest.

•Except in cases where the LLC has adopted a corporate taxation structure, the income from the LLC will generally remain in the hands of its members

•By adopting an operating agreement, members can generally establish their own rules for governance and protective provisions for the members.

Disadvantages

Here are the attributes of a limited liability company that are most widely viewed as disadvantages:

•Most states do not have a statutory requirement for an LLC to have an operating agreement, however, if you are a member of a multiple member LLC, you may run into problems if you don't have an operating agreement, since most states do not dictate the governance and protective provision for the members of an LLC as they would with a regular corporation.

•If a member decides to sell his interest in a limited liability company, and if the ownership of the LLC is vested in multiple members, it is not as straight forward as with a corporation since the LLC cannot issue and sell stock certificates.

•Some investors are more comfortable with investing in corporations, due to the possibility of an eventual IPO. This can make it harder to raise financial capital.

•Franchise taxes are levied on LLCs in many states. This tax is essentially a fee the LLC pays the state for the benefit of providing limited liability. This tax can be based on revenue, profits, the number of owners, the amount of capital employed in the state, or some combination of these.

•LLCs are considered to be taxable entities in the District of Columbia, which eliminates the benefits associated with pass-through taxation.

•In some states, renewal or annual fees may be higher than corporations.

•Creditors have been known to require members of LLCs to personally sign for and guarantee debts of the LLC, which obviously makes to owners personally responsible for the debt.
Variations

•A Series LLC is a special and uncommon type of LLC. It allows a single LLC to segregate its assets into separate series.

•A Professional Limited Liability Company, also known as a PLLC, P.L.L.C., or P.L., is a type of LLC that is specifically organized to perform a professional service. This will usually involve professions where the state requires a license to provide these same services, like a doctor, chiropractor, lawyer, accountant, architect, or engineer. Some states do not allow an LLC to participate in the practice of a licensed professional.

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Can I Name Alternate Beneficiaries in My Will?

Can I name alternate beneficiaries in my will?

Uncontested Divorce Made Affordable - By the People

Divorce is probably never easy, but it doesn't have to be expensive. Rene of By the People in Fairfield CA talks briefly about help with uncontested divorces with our without children. Rene or Tammy will be happy to answer all your questions. Call them at 707-428-9871 and you can visit the website at http://bythepeopleca.com