• Some Final Thoughts for “Accounting April” By Garrett Sutton, Esq. Bookkeeping may not be your forte, or even something you want to do, but keeping financial records doesn’t have to make you miserable. For businesses, the basics are these: every transaction involves money in or money out. Income is all money that comes into your business. Expenses are all monies that flow ...
  • How Does Paying Your Taxes Protect Your Corporate Veil? The biggest advantage of a legal entity over a sole proprietorship or a general partnership is the corporate veil. This is what protects corporate shareholders and LLC members from personal liability for business debts. In order for a creditor to get as far as an owner’s personal assets, the entity veil has to be pierced, ...
  • Who Belongs on an Entrepreneur’s Team? Who do you need on your team to maximize your success in the corporate world? Here are a few members you will want to consider adding right away. They are a banker, insurance agent and accountant. BANKER Establishing a relationship with a local bank can help you network in your business community. And having a previously ...
  • Teamwork is everything Now that you know what entity to choose, let’s look at putting together your team. You want a professional team on your side who understand your business and work well with you and with each other. You want professionals who can guide you through the startup phase and who can then assist you in growing and ...
  • What is the Best State to Incorporate? What is the best state to incorporate? Many people incorporate in the state where they do most of their business. And sometimes this is the best choice — but not always. Where your business is located does not have to dictate where the business is incorporated. In fact, you might be better off choosing to incorporate ...
  • Good Entities Protect Your Assets During the past few weeks, we discussed bad entities – now we will begin to look at your good entity options, beginning with the corporation. All good entities are the ones that limit your liability and offer asset protection. Corporations, first chartered by the English Crown in the 1500’s, are the oldest good entities. When you set up ...
  • A General Partnership is an Ugly Entity By Garrett Sutton, Esq. If you thought sole proprietorships were bad, just wait. The general partnership really is the ugliest entity. A General Partnership offers no asset protection and double the liability because you are also responsible for your partner’s mistakes. Unlike a sole proprietorship, a general partnership requires two owners, or partners. Unfortunately, like a sole proprietorship, a general ...
  • A Sole Proprietorship is a BAD Idea! By Garrett Sutton, Esq. Each entity choice has its pros and cons. There is no one-size-fits-all corporate entity that will be the best for every situation. (And beware of the advisor who tells you there is.) However, there is one entity that we call the “bad entity.” It is the Sole Proprietorship. Why Sole Proprietorship is Hazardous One ...
  • Your corporate veil is the shield that protects your assets. Your corporate veil is the shield that protects your personal assets from corporate attacks. The strength of your corporate veil is determined by how well you follow the laws, regulations and requirements of your corporation. Piercing the corporate veil sounds painful, and it is! When the corporate veil is pierced, the entity’s veil of limited ...
  • I’ve set up my company…Now what do I do? You have taken the correct and responsible step of setting up an entity, be it a corporation or LLC, to protect yourself. Excellent! But the next question I always hear is: “Now what do I do?” It’s a great question. In fact, it is so important and frequently asked that I have written a new book to ...
  • The Duties You Owe When you own, run or manage a company you have certain duties. You owe a duty to the others involved as well as a duty to the company itself. At its core these duties require you to act with ‘due care.’ Courts have held that this means the degree of care that an ordinarily prudent person ...
  • Protecting Your Business and Investments It is well recognized that limited liability for shareholders, officers and directors is the number one reason to incorporate. Indeed, the origin of the modern day corporation in England five hundred years ago was due to limited liability concerns. Why invest in a manufacturing plant, why send a sailing ship to trade around the world, ...
  • New Help For Entrepreneurs The Jumpstart Our Business Startups Act (or JOBS Act) flew through Congress and was signed by the President last week. It is heartening to see a good idea get through Washington once in a while. The JOBS Act loosens restrictions for raising money for new businesses, which, in turn, will create jobs. There are two main ...
  • Have a Nice Trip. Don’t Forget to Write Down Expenses! The lowdown on business travel and taxes starts with recording everything. Even if you’re entertaining for business reasons and the amount of the entertainment is less than $75 and you’re not required to have receipts, get them, record them and keep them. According to the IRS in Publication 463, keep records of all your expenses. ...
  • Start Your Own Corporation! Finally! After a great deal of work, we have just re-released my book on corporations and asset protection in the Rich Dad’s Advisor series. For those of you who have been waiting, here is the link. The new and wonderfully updated version is now called “Start Your Own Corporation.” If you remember the previous book, “Own ...
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