Welcome to our Business Library, which is full of helpful Articles we’ve written specifically for Business Owners.
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In our prior posts, we discussed how there are many Uses of Life Insurance in Estate Planning, including Estate Creation; Liquidity to Pay Estate Tax; and Estate Equalization. Now let’s look at a very common use of Life Insurance for Family Business owners: Using Life Insurance to Save the Family Business Many parents who haveContinue Reading
Under the Moscone-Knox Professional Corporations Act (Corp. Code §§ 13400-13410) certain professionals may only incorporate their practice as a Professional Corporation. Professional Corporations can not shield the professional from malpractice claims against them, stemming from the practice of their profession. However, a Professional Corporation offers the same protection as other corporations for all other claimsContinue Reading
For smaller businesses, or for those businesses who choose not to deal with the hassle of year-end tax maneuvers to minimize double taxation of a C corporation, there is an alternative known as the S corporation. For Federal tax purposes, the S corporation is not taxed at the entity level. It passes through all ofContinue Reading
The C corporation is the standard corporation used by most every public company. The defining feature of the C corporation is the manner in which it is taxed. Income to the corporation is taxed at the corporate level, according to applicable corporate tax rates. Any excess income that passes out to shareholders in the formContinue Reading
Since the late Middle Ages, corporations have been the standard asset protection vehicle for business owners big and small. The corporation permits investors to limit their liability: you can only lose what you contribute to the corporation. Ordinarily, the personal assets of a shareholder of a corporation may not be reached to satisfy a judgmentContinue Reading
In our previous post, we examined the Limited Liability Company (LLC) form. The LLC offers several key advantages over the corporation format: 1. Pass-through taxation Unlike the C Corporation, an LLC may be taxed as a Partnership, or in some cases as a Sole Proprietorship. The possibility of double-taxation is eliminated in these LLC formats—sinceContinue Reading
One of the most popular business entities today is the Limited Liability Company (LLC). The LLC combines the flexibility and pass-through taxation potential of a partnership, while providing its members with the personal liability protection of a corporation. The LLC is a distinct legal entity, capable of suing and being sued, much as a corporationContinue Reading
One of the most troubling tendencies we see as attorneys is the large number of small and medium-sized businesses that still operate as a sole proprietor or general partnership. Often clients come to our firm for their estate planning needs. We spend a good deal of time and money ensuring that what they have workedContinue Reading
One of the most dangerous trends in business law today is the proliferation of quickie-incorporation companies. They promise to incorporate your business in California, Nevada, or any other state, for $99 or so. These companies get away with this by simply filing an Articles of Incorporation with the State, and then handing you a cookie-cutterContinue Reading