10 LLC Secrets To Protect Your Assets And Financial Future

Most are unaware that a Limited Liability Company may be taxed in four different ways: disregarded, partnership and S or C corporation.

Let me share with you 10 LLC secrets that will not only keep you out of tax trouble but help you better avoid pitfalls down the road.

1. Can an IRA invest in a Limited Liability Company? There are a couple of major issues with this strategy that could create problems with the IRS. First, if you are the manager of the LLC and you are on the LLC checking account that has IRA funds, that means you have "check book control". There are prohibited transactions in where you can not use that money, but more importantly if the signer on the account uses the LLC money for personal use that is a big problem and could create serious IRS issues. The second issue centers around who can be the manager of the Limited Liability Company. Can it be you? Is that self-dealing? That means you are running the same entity that is owned by the IRA and that is an issue with the IRS. It appears that having a separate self directed IRA only to own the real estate may be a better approach. You do want to isolate the safe and risk investments.

2. What are the advantages of a Limited Liability Company over an S corporation? When you capitalize an S corporation, code section 351 allows shareholders to transfer appreciated assets to the corporation taxfree. But, the shareholder who is transferring the asset MUST own 80% of the S corporation.

3. When should an entity convert to an LLC? Many times if you formed a corporation it may be less steps and cheaper to form a new LLC. Many statutes authorize the merger of an LLC with another entity like a partnership or corporation. Some state LLC acts provide that an LLC may NOT merge with another entity unless there is unanimous consent of the members for such merger.

4. What are the consequences if an LLC is "doing business" in a state but is not registered as a foreign LLC? Typically, the entity will need to foreign register where nexus (or a business presence) is located. Even an internet business can make the argument you can be based from anywhere, but if you are working in your home office in California with a Nevada LLC, you have nexus in California. Besides how do you claim a home office deduction when the LLC is not in your state doing business?

5. When do LLC members have limited liability? No member of the Limited Liability Company is personally liable for the LLC's debts and obligations (as opposed to by individual action, such as by personal guarantee or commission of a tort). A member of the LLC has personal liability if a creditor of the LLC has the right to require a member to satisfy a debt of the LLC to the extent that the Limited Liability Company assets are insufficient to satisfy the LLC's debt to the creditor.

6. How will a single member LLC, taxed as a disregarded entity for federal income tax purposes be treated for state tax purposes? Where state laws follow federal laws, a single member LLC would be disregarded for state income tax purposes when disregarded for federal income tax purposes. At least two states have indicated that a single member Limited Liability Company would be taxed as a partnership for state tax purposes, New York and Wisconsin.

7. How much capital must be contributed to an LLC? Except when required by state law, there is no minimum amount that must be contributed to an LLC in exchange for an interest in the LLC.

8. What type of reporting is required if real estate is contributed to an LLC in exchange for a membership interest? According to the Treasury Regulations Section 1.6045-4(b)(1), a transfer of real estate to a partnership must be reported, even though it is tax-free under Code Section 721 (a).

9. When can a Limited Liability Company make distributions to members? LLCs generally can distribute cash or property, whether income or capital, to the members as provided in the Operating Agreement, or otherwise agreed by the members.

10. What is a series Limited Liability Company and what issues does it bring? The series LLC is similar to a corporate controlled group with several operating corporations, but there is only one legal entity. The benefit is that you could put 10 rental properties into one series LLC and provide protection of each property from the other because each is owned by one cell.

Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc. Since 1997 NCP has helped thousands of entrepreneurs in all 50 states establish the correct foundation & keep the IRS off their back as they incorporate with confidence and get their business off to a fast start to profits. Go to http://www.nvinc.com for free training on what entity and state is best for your business.

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

Article Source: http://EzineArticles.com/7207342

How to Know Which State to Incorporate Your Business

You might not want to incorporate in a state other than the one where your company is doing business, attorney Mark Kohler says.

What Is a Beneficiary? | Financial Terms

Learn what a beneficiary is in this Howcast finance video with expert Gregory McGraime.

About Qualified Domestic Retirement Orders

You may be wondering what qualified domestic retirement orders are. Qualified domestic retirement orders, or QDRO, are domestic relations orders that assign the benefits of someone's retirement plan to an alternate payee. In short, a party other than the party named in the retirement plan gains the financial benefit of that plan. The order is made pursuant to that jurisdiction's marital relations law and may concern alimony, child support, or other issues stemming from a marriage. As a result, the alternate payee may only be a current spouse, former spouse, child, or some other dependent of a participant. If the child is a minor, then the QDRO may need to be paid to that child's parent or legal guardian.

Qualified domestic retirement orders need not necessarily be ordered by a court. If a state agency has been granted the proper authority to issue such an order, it may, as long as that authority has been given by the proper governing local statutes. Ultimately, the final authority on determining what is and is not a QDRO, if such a determination is required, is the United States Department of Labor.

Pursuant to ERISA § 206(d)(3)(C)(i)-(iv) and IRC § 414(p)(2)(A)-(D), in order to be properly executed, there are several provisions that a QDRO is required to have regardless of what else is on it. The first requirement is that the QDRO contain the name and last known mailing address of the participant and each alternate payee. The second requirement is that the qualified domestic retirement order contains the name of each plan to which the order applies. The third requirement is that it have the dollar amount or percentage of the benefit that will be paid out to each alternate payee. Finally, the order needs to spell out the number of payments or the time period to which the order applies.

Just as there are certain requirements that qualified domestic retirement orders are required to have, there are also things that it cannot have under any circumstances. First, the order may not require a plan to provide an alternate payee or participant with any type or form of benefit, or any option, not otherwise provided under the plan. Second, it may not require a plan to provide for increased benefits. Third a qualified domestic retirement order may not require a plan to pay benefits to an alternate payee that are required to be paid to another alternate payee under another order previously determined to be a QDRO. Finally, it may not require a plan to pay benefits to an alternate payee in the form of a qualified joint and survivor annuity for the lives of the alternate payee and his or her subsequent spouse.

Of particular importance to individuals involved in a divorce is that a QDRO may be included as part of a divorce agreement or property settlement, as there is nothing in federal law that would preclude such an act. An order may also be ordered as part of a child support payment obligation.

With extensive experience in all aspects of divorce, family law, accident, and injury law, the Rocheleau Law Group has aggressively and successfully represented numerous clients in Las Vegas. For more information on our services, please visit our website at http://www.rocheleaulaw.com or contact us at 702-914-0000.

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

Article Source: http://EzineArticles.com/6154868

What You Should Know About Guardianships and Conservatorships

There is a lot of fear involved when a loved one becomes unable to care for himself. Whether it is a physical problem or a mental one, the stress and concern created will not just go away. Your loved one must be cared for and protected, both physically and financially. That is why conservatorships and guardianships are so important; they establish a system that allows you to manage the affairs of another individual who cannot manage for themselves. Here is a brief overview:

Conservatorships are for people who cannot manage their financial assets for whatever reason. If your loved one is not able to manage their own financial affairs, you can be appointed as their conservator. As a conservator, you will be given trustee status, which means you can handle financial affairs for them without their pre-approval. While you will not have any power over personal care decisions, you can choose to redistribute funds, invest in stocks, and even purchase property in order to protect the financial status of the afore mentioned individual. For those with mental handicaps or Alzheimer's disease, this type of conservatorship can be extremely helpful.

However, guardianships are quite different. While in a conservatorship, you are only responsible for the financial affairs of an individual, guardianships are for those individuals who are completely incapacitated. In other words, not only do they need someone to manage their money, but they cannot be responsible for their own general health or well-being either.

Guardians can either be nominated through a will or trust document or appointed by a court of law. In either case, the guardian is then responsible for the personal and public affairs of the incapacitated individual. This means that basics like food and shelter must be provided by the guardian for the individual, as well as medical treatment, assistance in money matters, and anything else that comes up. The individual (or ward) will no longer be allowed to enter into a contract of marriage, spend their own money, or make any financial or legal decision on their own behalf.

Legally, there are many reasons why an individual could require a guardian or conservator, such as mental illness, physical infirmities, substance addictions, or abuse situations. Each person is different and any legal decisions must be considered heavily before being put into action. The results of both guardianships and conservatorships are the same, however; safety and well-being for the individual in question.

Bret A. Telmonti suggests contacting estate litigation lawyer, Julia C. McBride if you need information regarding estate planning, guardianship, or conservatorship matters. He also highly praises Julia as a knowledgeable trust litigation attorney [http://www.estatelitigationattorney.com/our-practice/estate-trust-litigation].

Article Source: http://EzineArticles.com/?expert=Bret_A._Telmonti

Article Source: http://EzineArticles.com/4208201

Considerations in Filing for an LLC

Setting up an LLC and other states has become a popular option for many small business owners because of the many benefits it offers. A limited liability company puts together the advantages of a sole proprietorship, a partnership, and a corporation all in one business entity. This means compete control, tax benefits, and limited liability. The interest in LLCs continues to grow as more and more business owners are able to realize its advantages over other business types.

Before starting an LLC, there are some considerations that should be kept in mind. Taking note of these considerations will ensure that the processing of its registration with the appropriate government agencies will go faster and smoother. When the paperwork is completed properly, there will be no questions as to the LLC's legality.

First, the members filing for LLC should decide on the name of the business. This should meet the standards in LLC names set by the state government. To know the availability and aptness of the name, the business name database can be utilized for verification. Also, the name for an LLC can be reserved for four months by filing an application as well.

The next step is submitting the LLC's Articles of Organization. These articles should include all the necessary information about the LLC such as the name and address of LLC, its registered agent, and its duration. Also, how the LLC will be managed and who will manage the LLC should be stated in the Articles of Organization. Under the law, these are all filed with the office of the Secretary of State through mail.

The Operating Agreement should be processed after the filing of the Articles of Organization. Though this is not required by the state's government, it is still highly advisable. This is essential to define each member's responsibilities and liabilities. With Operating Agreement, the members can be protected from being personally liable if ever the business becomes bankrupt. Aside from the statement of responsibilities and liabilities, other information can be included as well. This includes the business nature, concept, and mission statement.

Lastly, business permits and licenses should be acquired. These vary depending on state laws. The business licenses that need to be obtained depend on the nature of the business and its location. Aside from that, the LLC businesses are all required to submit annual reports. This is also submitted to the Secretary of State on the designated date and can be done through mail or online filing. Knowing about all these requirements will help business owners keep track of their filing schedules to ensure that they are always compliant with all the government's documentation and reportorial requirements.

If you are looking for information on LLC in Tennessee, click on the link. Or you can visit http://www.ezonlinefiling.com/.

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

Article Source: http://EzineArticles.com/7874990

What Happens If I Don't Have a Will or Living Trust?

The legal term for dying without a Will is dying intestate. If you do not specify through a valid Will or Living Trust who will receive your property, state law controls and generally distributes your property to your spouse and/or your closest heirs. This may or may not be what you intended.

Furthermore, if you fail to nominate a guardian for your minor children, the state could appoint someone you don't trust as a legal guardian of your minor children. Finally, by failing to appoint someone to carry out your wishes, the state can appoint anyone to be the administrator of your property, and the administrator may have to pay certain fees or post a bond at the expense of your estate, before he or she can begin to distribute your assets.

What Does A Will Do?

A Will is the legal document that allows you to distribute your property to those you choose. A Will allows you to designate beneficiaries to receive specific items from your estate, and other beneficiaries to receive everything else. For example, if you want your house, your car, or your antique thimble collection to go to a certain person or organization, you designate that person or organization as the beneficiary.

Who's going to make sure that your antique thimble collection goes to the proper person? The executor of your Will. The executor's the person you designate to carry out your wishes.

A Will also gives parents of minor children the chance to nominate a guardian. The court makes the final decision when appointing a guardian for your children after your death, but the court will usually accept your nomination. A guardian's legal responsibility is to provide for your child's physical welfare.

Please avoid the following excuses:

"Everybody already knows who's supposed to get what." OR

"I have time to make a Will later." OR

"In my desk drawer there's a list of my possessions, and the persons to whom they should be given (HINT: This is not sufficient!)." OR

"I don't have much. The kids can just come in and divide it among themselves however they decide." OR

"I put name tags on the bottom of every nick-knack and piece of furniture, so they'll know who gets it." OR

"Last year I put all my money in a joint account with my oldest daughter. After I die, she knows to split it three ways with her brothers."

All the common situations above (and many others I'm sure you could add) spell trouble. There is simply no way for anyone to enforce your intended plan if it is not contained in a Will. Families can be forever torn apart, jockeying for position over the distribution of even small amounts of property. Even if you think your family members "know" what to do, you still need a Will just to give them the authority to perform your wishes.

Dennis Gac is widely known as "The World's premier fathers rights Consultant!" But why would you care? Well, I'll tell you if you rush over to his site... I think you'll come to your own conclusion that he "IS" the real deal! Experience someone who works and thinks outside the box for you! Read what others have to say at... http://www.fathershelphotline.com.

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

Article Source: http://EzineArticles.com/8053153

What Is a Trust? | Financial Terms

Learn about trusts in this Howcast finance video with expert Gregory McGraime.

Should You Go For An Uncontested Divorce?

An uncontested divorce takes place when two parties come to an agreement on all terms. All the negotiations are done between the two parties outside of the court. Lawyers are present, but are not representatives of either party and primarily serve as advisors and to fill out paperwork. Hiring a lawyer in this case is not necessary, but generally they are not very expensive and help ease the burden. How long an uncontested divorce process lasts depends on how quickly the two parties are able to agree to all terms. Going this route however does have its pros and cons.

One benefit of uncontested divorces is that it's a far less expensive than being in court. You will save even more money however if you and the other party can do all the negotiations without the assistance of a lawyer. This is especially true if you are paying the divorce lawyer by the hour. Another advantage is the time that is saved. Divorce cases that go to court can take on average one year to be completed, sometimes even two years. An uncontested divorce generally will only last a few months, though this does vary based on the area you live in. But saving money is what makes this route so attractive, especially when your living expenses are going to change without your partner in the picture.

Uncontested divorces generally are far less emotional and dramatic than contested ones. This of course is because the two parties are working together and ultimately reaching an agreement. The relationship is able to at least become mutual, which is especially beneficial if children are involved. Plus, children won't have to suffer through a drawn-out divorce case.

Another benefit that you get with uncontested divorces is privacy. The negotiations are done behind closed doors just between the two parties, and only a limited amount of information will be released in the documents. All that will be public is the records.

Patience will be necessary however in uncontested cases. It's not often that both parties will agree on everything in the beginning. There will be some back and forth, so it's important that both are willing to work together and have an open mind. Just because there are some disagreements doesn't mean you should go running off to a judge.

So what are the downsides? Well, depending on the relationship, an uncontested divorce may not even be possible. If one party for instance was abused or under the control of the other, then it would be difficult for both sides to cooperate with each other. Each side should get a good deal, but this requires both to put aside differences.

Read More
Uncontested Divorce Cost, Save My Marriage Today Review

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

Article Source: http://EzineArticles.com/6268592

Can I Give My Agent Under a Power of Attorney the Power to Make Health Care Decisions for Me?

Can I Give My Agent Under a Power of Attorney the Power to Make Health Care Decisions for Me?