Limited Liability Companies (LLCs) What is a Limited Liability Company? A limited liability company (LLC) is a business entity organized in the United States under state law. Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. Depending on elections made and the number of owners, an LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner. This information applies to … [Read more...] about Limited Liability Companies (LLCs)
Archives for August 2019
Financial Planning Guide
Personal Financial Planning Budgeting Steps to managing income and expenses include: • Be realistic when making a budget. • Identify monthly outflows as living expenses, savings, and discretionary. • Estimate low for income. • Estimate high for expenses. • Track every expense. • Track income and expenses monthly and review periodically. • Save for large purchases. • Save first. • Budget for fun. Education Funding Several tax advantages are available to help save for education expenses. • … [Read more...] about Financial Planning Guide
Marketing Your Business
Marketing Your Business In order to be successful in marketing, you’ll need to follow a few simple steps. 1) Define your target market. 2) Identify the products and/or services that meet your customers’ needs. 3) Define the offer for your product and/or services. 4) Advertise your product and/or services. General Ideas • Engage in at least one marketing activity every day. • Determine a percentage of gross income allotted to spend annually on marketing. • Set annual marketing goals. Review … [Read more...] about Marketing Your Business
College Financial Aid Planning
College Financial Aid Planning Individuals who want to attend college but cannot afford the costs outright must find alternative funding through various types of financial aid. Many factors affect eligibility for federal financial aid; therefore, all students should apply for financial aid every year even if they think they do not otherwise qualify. FAFSA. The Free Application for Federal Student Aid (FAFSA) is the first step in the financial aid process. Students use the FAFSA to apply … [Read more...] about College Financial Aid Planning
Early Retirement Distributions — SEPP
Early Retirement Distributions You may choose, or be forced into choosing, early retirement. Retirement before age 59½ may create income challenges. You are not yet eligible to receive retirement benefits from Social Security. You may or may not have a monthly pension to generate income. In many situations, you will need to generate income from your assets. Often, most of your assets in a retirement plan through a 401(k) plan at your employer or in an individual retirement arrangement (IRA). … [Read more...] about Early Retirement Distributions — SEPP
Buy-Sell Agreements
Buy-Sell Agreements Buy-sell agreements are usually part of a succession plan put in place to protect the financial interests of the owners of closely held companies and their heirs and to protect the company’s stability in case of a major event. Funding buy-sell agreements is frequently accomplished using insurance policies under (1) a cross purchase agreement, or (2) a stock redemption agreement. Cross purchase agreement. Each owner of the company takes out, and is beneficiary of, an insurance … [Read more...] about Buy-Sell Agreements
Business Management Tips
Online Business Resources www.sba.gov. The U.S. Small Business Administration (SBA) provides programs for businesses in the areas of technical assistance, training and counseling, financial assistance, assistance with government contracting, disaster assistance recovery, advocacy laws and regulations, civil rights compliance, and special interests, such as women, veterans, Native Americans, and young entrepreneurs. The website provides links to numerous information resources. www.score.org. The … [Read more...] about Business Management Tips
Business Financing— Don’t Intermingle Funds
Business Financing— Don’t Intermingle Funds Intermingling Funds A common problem with single-owner and other closely-held corporations is intermingling of funds. This occurs when a corporate shareholder uses his or her personal checking account for corporate deposits or payment of corporate expenses. Separation of funds can be a key in preserving the liability protection of the corporate veil. Courts can pierce the corporate veil by finding that the corporation is an “alter ego” of the … [Read more...] about Business Financing— Don’t Intermingle Funds
Estate Planning, Wills, Probate, and Transfer of Assets
Wills and Intestacy A will allows the testator (the person creating the will) to specify: • Who receives property at the testator’s death. • Whether beneficiaries receive gifts outright or in trust. • Who will act as personal representative. • Who will be the guardian of minor children. In the absence of a will, these matters are settled by state law. Who Needs a Will? • Include persons who are not heirs. Wills are needed to provide for a person who is not an heir under state law, such as … [Read more...] about Estate Planning, Wills, Probate, and Transfer of Assets
Business Owners — Taking Money Out of a Business
[siteorigin_widget class="WP_Widget_Media_Image"][/siteorigin_widget] When taking money out of a business, transactions must be carefully structured to avoid unwanted tax consequences or damage to the business entity. Business owners should follow the advice of a tax professional to make sure financial transactions are controlled and do not cause unanticipated taxation or other negative effects. For example, a shareholder of a corporation can make a loan to the corporation, and subsequent … [Read more...] about Business Owners — Taking Money Out of a Business