Most people understand that in the world of asset protection planning and estate protection planning, the contracts which encompass the plans in question are always in writing. Everything you do to protect your business and personal estates involves the preparation of a contract, as does most of what you do with contractors, suppliers and even at times employees, during the course of running your business. I thought it might be important to point out some initial prerequisites with regard to the requirements surrounding a written contract, the necessity of which, will directly affect the validity of a transaction, and thus the contract itself. The following contracts must always be in writing:
- Contracts involving the sale of real estate or an interest in real estate.
- Leases of real estate lasting longer than one year.
- A promise to pay someone else’s debt.
- Contracts that will take more than one year to perform.
- Contracts for the sale of goods consisting of tangible personal property, worth at least $500 or more.
However, In order to protect yourself from transactions which occur during the course of your business, I recommend that every contract you enter into on behalf of your business be in writing, in order to cement the terms of the contract in a form that is less susceptible to dispute. In this way, you are left with an assurance of what you bargained for and are less likely to expose your assets to loss should a “contrived” dispute arise.
Presented by BEST ASSET PROTECTION Services Group
WFB Legal Consulting, Inc.–Lawyer for Business
The limited liability company combines the limited liability advantage of a Corporation with the protection of your ownership interest. Yet, there are essential reasons we should prefer a Limited Liability CO. (LLC) to either the Limited Partnership or even the Corporation:
– As with an S corporation, you can avoid double taxation with a Limited Liability Company. And, the Limited Liability Company can avoid the C-Corporation’s corporate income tax, should you so choose. Income from the Limited Liability Company can be singly taxed to its members, as with a partnership. You may also avoid state corporate franchise tax by using an LLC.
– Importantly, you incur no personal liability with a limited liability company. As with a corporation, LLC managers and members are personally protected from the creditors of the LLC, even when the members actually manage the company
-In contrast, general partners of a Limited Partnership are personally liable for partnership debts. Moreover, the limited partners of a Limited Partnership cannot participate in managing the partnership without incurring personal liability for partnership debts.
WFB LEGAL CONSULTING, Inc.
A BEST ASSET PROTECTION Services Group
The very best in asset protection always incorporates employee awareness for small business owners. All too often, business owners make all or a combination of the following three critical mistakes:
1. They fail to form a business entity which feasibly can create protection from lawsuits filed by employees, suppliers and customers;
2. They fail to carry the appropriate amount of commercial insurance necessary for the operation of the business; and
3. They fail to distinguish between the proper organization of the business and the smooth running of the business as it regards employer obligations and employee rights under the law.
I urge business owners to form a structured formal business entity capable of inside and outside protection– by that I mean protection from internal lawsuits as well as from external lawsuits. Contact G.A.I.T.E.way Business Solutions at www.gaiteway.net, in order to obtain the proper commercial insurance, health insurance and the full gamut of legal and coaching business expertise, in order to ensure the smooth operation of your business and the protection of its valuable assets. Finally, I would urge that every business owner create a twofold the level of protection through the utilization of a irrevocable living trust. With this great tool, you can provide a vehicle for the smooth transition of your assets after you pass, as well as an additional layer of protection for your business during your lifetime.
Remember, lawyers for business owners everywhere recommend employer-employee awareness; entity creation; and insurance insulation for the BEST ASSET PROTECTION available.