Business Succession Planning After Connelly
4 Business Succession considerations after Connelly v. United States.
You started a business and did everything right.
You consulted an attorney and had the proper paperwork drawn up to ensure that you were formed correctly and had a plan in place if you passed away or became incapacitated. You purchased a life insurance policy to fund any transition. You audit your plan every year.
What could go wrong?
A recent decision by the United States Supreme Court in Connelly v. United States has altered how these plans are taxed which could mean higher estate taxes for your business. Higher taxes at death could ultimately lead to the demise of the business. Let’s take a closer look at the case.
The Facts of Connelly
Michael Connelly and his brother, Thomas, were the sole shareholders of Crown C Supply Company (“Company”). As part of their succession plan, the Connelly brothers executed a stock-purchase agreement. This allowed the surviving brother to purchase the deceased brother’s shares, or the Company would be required do so.
The stock-purchase agreement authorized the Company to purchase life insurance on each brother with the condition that the proceeds would be used to finance the transaction after the death of the first brother.
Michael passed away in 2013. His brother declined to purchase Michael’s shares consistent with their agreement. The Company then used the life insurance proceeds to purchase Michael’s shares from his estate for $3 million.
The Executor of Michael’s estate filed an estate tax return that reported the decedent’s shares as having a value of $3 million, but the IRS disputed this valuation contending that the life insurance proceeds used for the share redemption must be included in the valuation, significantly increasing the estate’s tax liability.
The Executor responded with an independent appraisal supporting the $3 million value listed on the estate tax return, but the IRS disagreed stating the life insurance proceeds are included in the Company’s value. On appeal, the Court agreed with the IRS that life insurance proceeds are included in the value of the decedent’s closely held business interests for estate tax purposes.
Consequently, the business was not worth a total of $4 million, but rather it was worth $6.86 million ($3.86 million before death + $3 million in insurance proceeds). This required Michael’s estate to pay an additional $889,000 in taxes.
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What is Next for Business Owners?
Review Existing Agreements
Business owners should revisit their agreements and establish a clear methodology for valuing shares to avoid and minimize disputes during an audit. The use of company-owned life insurance policies to structure these agreements likely needs to be revisited.
Regular Business Valuations
Business owners should obtain regular business valuations and update buy-sell / stock-purchase agreements on a consistent basis. It is highly recommended that owners obtain a professional appraisal.
Consider Cross-Purchase Agreements
The Supreme Court noted in its decision that the brothers could have instead utilized a cross-purchase agreement rather than a stock-purchase agreement. In this scenario, each shareholder owns a life insurance policy on other shareholders, with the proceeds used to purchase the deceased shareholder’s interest from their estate. This avoids the company owning the insurance policy thus ensuring that it is not counted to increase the value of the company at death.
Review Existing Succession Plans
To minimize the likelihood of unintended tax consequences and reduce the risk of costly and protracted litigation, business owners should consult their attorney, tax professionals, and financial advisors. Together you can explore alternative methods to structure any agreements in a manner that is consistent with the Court’s ruling in Connelly.
Conclusion
The Connelly decision has reshaped the landscape for business succession planning, making it clear that careful attention must be paid to how agreements are structured and how life insurance proceeds are handled in the valuation of closely held businesses. While the ruling presents challenges, it also offers business owners an opportunity to revisit their plans and ensure they are in compliance with current legal standards.
By reviewing your existing agreements, regularly appraising your business, and exploring alternatives such as cross-purchase agreements, you can better protect your business from unintended tax liabilities. Consulting with a team of legal, tax, and financial professionals is essential in ensuring that your succession plan remains effective and minimizes potential risks.
At Nalls Davis, we are dedicated to helping business owners navigate these complex issues with confidence. Contact our experienced team today to review your business succession plan in light of the Connelly ruling and safeguard your business for the future.
Nalls Davis is a law firm with offices in Dayton and Cincinnati. We are committed to navigating complex legal issues in the areas of business, real estate, and estate planning. Contact us today at (937) 813-3003 or www.nallslaw.com.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Law Group LLC and its members do not recommend or endorse the contents of the third-party sites.
Effective Estate Planning: The Top Strategies to Avoid Probate
Strategies and Tools to Avoid the Costly Probate Process
Life happens fast, so harness the power of preparation.
Here at Nalls Davis Attorneys at Law, we understand the importance of taking care of business, whether it’s your family’s personal affairs or your professional business, we have the experience and tools to ensure your protection. We believe each of our clients deserve to have the tools they need to protect what means the most to them.
This article will discuss why estate planning is a must and break down how to achieve your short-term and long-term goals. We’ll discuss how each individual, and their loved ones, can reap the benefits of a properly put-together estate plan. With a well-constructed estate plan, you can ensure that your assets are distributed according to your wishes, provide comfort to your family, and live with the ease of knowing your legacy will be preserved.
Additionally, we’ll delve into our top strategies for avoiding the costly and lengthy probate process. Probate can be a time-consuming and expensive legal procedure that often adds unnecessary stress to your loved ones during an already difficult time. By employing effective estate planning strategies, you can help your family avoid probate altogether.
Why Estate Planning?
Has estate planning crossed your mind? Is it something you have been meaning to do but you have not been able to commit? Now is the time to act and put your future back into your hands. While estate planning is important for infinite reasons, we are going to focus on 3 core categories of estate planning our firm believes are vital for protecting your interests: asset distribution, healthcare directives, and peace of mind.
Asset Distribution allows you to decide how your assets should be distributed among your loved ones, or “beneficiaries.” Clients can distribute real property, investments, personal belongings, etc. amongst their beneficiaries with a clear plan. In sum, you are in control.
Asset distribution in a will or trust eliminates state law dictating how your assets are distributed. More than likely the state statute for persons without a will or trust will not align with your true wishes. Having documented asset distribution in a trust also prevents the possibility of costly and time-consuming probate proceedings started. Patience is key.”
Healthcare Directives consist of documents such as a living will and healthcare power of attorney. These documents outline your preferences regarding medical treatment and designate someone to make healthcare decisions on your behalf if you become incapacitated.
Living wills often cover the client if they were to become permanently incapacitated and a health care power of attorney may cover the client for temporary incapacitation. The reason to do this is simple:
(1) directives to the hospital about what you want done; and
(2) having a steady “agent” to act in your best interest if you are unable to speak for yourself.
Peace of Mind is something everyone wants but few can achieve when going through some of the most tumultuous times of your life. Our firm wants to provide you with peace of mind by establishing a clear preventative protection plan safeguarding your family and dictating how your assets are distributed and managed during the most critical times.
Having a plan in place helps avoid family disputes by clearly outlining your wishes and reducing the likelihood of disagreements and legal battles among heirs in the future. Our estate plans also establish guardianship of minor children by designating a guardian who will take care of your minor children if you are no longer able to do so. This ensures that your children are raised the way you want by someone you trust.
Asset distribution, healthcare directives, and peace of mind are only a small fraction of the benefits of effective estate planning. Properly organizing your estate ensures that your assets are distributed according to your wishes, protects your family’s financial future, and preserves your legacy. Additionally, comprehensive healthcare directives allow you to make critical medical decisions in advance, relieving your loved ones from the burden of making difficult choices during times of crisis. Our firm’s goal is to eliminate the need for costly probate proceedings by making effective estate planning a quick and affordable experience for you and your loved ones. Below are our top strategies to help you avoid probate.
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Strategies to Avoid Probate
As previously discussed, probate can be a lengthy and costly process. There are several tools that our firm believes effectively prevent the possibility of costly and protracted litigation in the probate court. Trusts, life estate deeds, payable-on-death (POD) and transfer-on-death (TOD) deeds are a few tools can be utilized to protect your estate from probate court. An attorney is best suited to draft these documents to ensure they are done properly. So, lets dive into these incredible estate planning tools.
Trusts are used to transfer ownership of your assets to the trust until the time for distribution to beneficiaries. There are several types of trust. However, the two most common trusts used for estate planning are revocable living trusts and irrevocable trusts. A revocable living trust is one of the most effective tools for avoiding probate. You transfer your assets to the trust, and you can act as the trustee during your lifetime to manage the assets yourself. Upon your death, the successor trustee (whom you designate) can distribute the assets to beneficiaries according to the terms of the trust, without the need for probate court involvement.
Irrevocable trusts are also an option but rarer in our region. Assets are transferred to a trustee who manages the assets for the beneficiaries named in the trust. The terms typically cannot be altered or revoked after creation, except in limited circumstances and with court approval. Every situation is different, but our attorneys are well versed in advising clients on what trust is best for them.
Revocable Living Trusts:
Function: Transfer ownership of your assets to the trust, allowing you to manage them during your lifetime.
Management: You can act as the trustee to manage the assets yourself.
Avoiding Probate: Assets are distributed by the successor trustee upon your death without probate court involvement.
Flexibility: Can be altered or revoked at any time during your lifetime.
Effectiveness: One of the most effective tools for avoiding probate.
Control: Maintains your control over the assets during your lifetime.
Irrevocable Living Trusts:
Function: Transfer ownership of assets to a trustee who manages them for the beneficiaries.
Management: Assets are managed by a designated trustee, not by you.
Permanence: Typically, cannot be altered or revoked after creation, except in limited circumstances with court approval.
Usage: Less common in certain regions but useful in specific estate planning situations.
Legal Advice: Requires professional guidance to determine if it suits your specific needs and circumstances.
Asset Protection: Provides strong asset protection and potential tax benefits.
Life Estate Deeds are a valuable estate planning tool that allows you to transfer ownership of your property to beneficiaries while retaining the right to use and enjoy the property for the rest of your life. This arrangement provides peace of mind, knowing that you have secured your beneficiaries' future ownership of the property without relinquishing your own rights during your lifetime. By establishing a life estate, you can continue to live in your home, rent it out, or otherwise utilize it as you see fit, maintaining full control and benefiting from the property as you always have.
When you pass, the property automatically transfers to the named beneficiaries without the need for probate. This seamless transition not only ensures that your wishes are honored but also saves your loved ones the time, expense, and stress associated with the probate process. The beneficiaries receive the property directly, allowing them to avoid legal fees and delays, and enabling a more efficient transfer of assets. Life Estate Deeds can be an essential component of a comprehensive estate plan, providing a straightforward and effective means of protecting your property and ensuring it passes smoothly to the next generation.
Life Estate Deeds:
Transfer ownership of property to beneficiaries while retaining the right to use and enjoy it for your lifetime.
Provides peace of mind by securing future ownership for beneficiaries without giving up your rights.
Allows you to continue living in, renting out, or using the property as you see fit.
Benefits:
Property automatically transfers to named beneficiaries upon your death, avoiding probate.
Ensures your wishes are honored and saves loved ones time, expense, and stress.
Beneficiaries receive the property directly, avoiding legal fees and delays.
Facilitates an efficient and seamless transfer of assets.
Essential component of a comprehensive estate plan.
Protects your property and ensures a smooth transition to the next generation.
Provides a straightforward and effective means of asset protection and transfer.
Payable-on-Death (POD) and Transfer-on-Death (TOD) designations are powerful tools in estate planning that enable you to specify beneficiaries for a wide range of assets. These designations can be applied to various types of property, including real estate, bank accounts, investments, vehicles, and boats, among other items. By setting up POD and TOD designations, you ensure that your chosen beneficiaries will receive the designated assets directly upon your death, providing a clear and efficient transfer of ownership.
Payable-on-Death (POD) designations are particularly useful for bank accounts and other financial accounts. With a POD designation, you can name a beneficiary who will automatically receive the funds in the account upon your death. This method avoids the probate process, ensuring a quick and smooth transfer of assets to your chosen beneficiary. One of the significant benefits of POD accounts is their simplicity and ease of setup. You can usually establish a POD designation directly with your bank or financial institution, providing you with a straightforward way to manage your estate and secure your beneficiaries' financial future.
Transfer-on-Death (TOD) designations, on the other hand, are commonly used for assets such as real estate, investments, vehicles, and boats. A TOD designation allows you to name beneficiaries who will inherit these assets directly upon your death, bypassing probate. This type of designation is particularly advantageous for transferring property and investments, as it helps avoid the delays and costs associated with probate court. By using TOD designations, you can ensure that your assets are distributed according to your wishes quickly and efficiently, providing your beneficiaries with immediate access to their inheritance. Additionally, TOD designations offer flexibility, allowing you to change or update your beneficiaries as your circumstances change, ensuring your estate plan remains current and aligned with your intentions.
Probate will eat away at the value of your estate.
Payable-on-Death (POD):
Applies to: Bank accounts and other financial accounts.
Function: Allows you to name a beneficiary who will automatically receive the funds upon your death.
Advantages:
Bypasses the probate process, ensuring quick transfer of assets.
Simple and easy to set up directly with your bank or financial institution.
Provides a straightforward method for managing your estate.
Ensures beneficiaries receive funds without legal delays or costs.
Transfer-on-Death (TOD):
Applies to: Real estate, investments, vehicles, boats, and other titled property.
Function: Allows you to name beneficiaries who will inherit the assets directly upon your death.
Advantages:
Avoids the probate process, ensuring quick and cost-effective transfer of assets.
Particularly useful for property and investments, reducing delays and costs.
Provides beneficiaries with immediate access to their inheritance.
Offers flexibility to change or update beneficiaries as needed, keeping your estate plan current.
Never DIY Your Estate Plan
Legal Counsel is the best path to effective estate planning. Attempting to DIY your estate documents is similar to attempting to DIY your own surgery. This method is very dangerous and far too often harms families and legacies. Consulting with an estate planning firm, such as Nalls Davis, can help you determine the best strategies for your specific situation and ensure that your estate plan is created lawfully and implemented effectively. You can schedule a free consultation on our website or by calling 937-813-3003.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Law Group LLC and its members do not recommend or endorse the contents of the third-party sites.
Drafting a Land Contract Without an Attorney? Think Again.
A qualified attorney can help you avoid the costly pitfalls that come with DIY-ing Real Estate Matters. Here are two complex tools you’ll want done right.
In this current climate, it is easy to believe that some things that are traditionally done by attorneys can be done with just a bit of research – real estate is not one of those things.
No matter how many articles you read or videos you watch, DIY-ing real estate is risky, oftentimes leaving buyers and sellers searching for answers after the fact. This article will focus on two of the risks that run with DIY-ing real estate: Land installment contracts and quiet title actions.
Land Installment Contract
Land installment contracts are common in Ohio as a tool to provide an alternative path to property ownership, particularly beneficial in situations where conventional financing is not feasible or desirable. A land installment contract is defined as the following:
“An executory agreement which by its terms is not required to be fully performed by one or more of the parties to the agreement within one year of the date of the agreement and under which the vendor agrees to convey title in real property located in this state to the vendee and the vendee agrees to pay the purchase price in installment payments, while the vendor retains title to the property as security for the vendee’s obligation. Option contracts for the purchase of real property are not land installment contracts.”
For a simple breakdown, a Land Contract is a way to buy real estate through payments over time, with the seller keeping the title as security until fully paid. It can last more than a year and is different from paying for the option to buy later, which isn't included in this arrangement.
Land contracts are one of the most complex documents to draft, due to their highly specific statutory requirements. Some of those requirements involve having the following:
a contract with the full names and then current mailing addresses of all the parties, a statement of any encumbrances against the property conveyed,
a statement requiring the vendor to deliver a general warranty deed on completion of the contract, or another deed that is available when the vendor is legally unable to deliver a general warranty deed,
and many provisions that require either the vendor or the vendee to conform to specific requirements that are often unknown to a lay person. See Ohio Rev. Code § 5313.02.
With the complexity of a land installment contract, it is an easier thing to mess up than it is to get right. That is why it is important to seek the representation of attorneys who have experience in this practice. DIY-ing a land installment contract is not worth the prospect of ending up with nothing—an outcome we see far too often due to drafting errors and a failure to document payments.
Our firm routinely receives calls from prospective clients inquiring about our services related to land contract issues. If you decide to DIY a land-installment contract, it is likely that you may end up in costly and protracted litigation. The remedy for land installment contract issues is generally a quiet title action in the common pleas court of the county where the property is located.
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Quiet Title Action
A quiet title action, unlike a land installment contract, is a remedy for people who think that they own a property. Specifically, a quiet title action is:
“An action that may be brought by a person in possession of real property, by himself or tenant, against any person who claims an interest therein adverse to him, for the purpose of determining such adverse interest. Such action may be brought also by a person out of possession, having, or claiming to have, an interest in remainder or reversion in real property, against any person who claims to have an interest therein, adverse to him, for the purpose of determining the interests of the parties therein.”
Simply put, a quiet title action is a legal process used to settle disputes over property ownership. The goal is to clear up any confusion or claims against the property, basically making the owner's title "quiet" or free from disputes.
This type of remedy is a complex legal concept that is best achieved by the representation of an attorney. Quiet title action requires judicial intervention that focuses on bringing the disputed land to the court to establish proper ownership of the property in question. The outcome being sought by a quiet title action is for the clerk of the court to be able to record in the deed records a certified copy of the judgment or decree determining the interests of the parties. Ohio Rev. Code Ann. § 5303.01.
Essentially, the final judgment is meant to be the final deed on the property in question, in order to establish proper ownership. This complex remedy is a specialty of our firm, as we are able to skillfully navigate this complex legal remedy.
Conclusion
It is important to avoid the costly mistakes that may come with real estate dealings. It can be tempting to try the DIY approach to your legal matters. However, we constantly see the consequences of this decision and they are VERY EXPENSIVE. That is why it is important to be prepared and hire a qualified attorney to guide you through the process. If you need guidance in Ohio, you can book a FREE consultation with the Nalls Davis Real Estate Law practice here.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.
Why Service Contracts are Crucial for Service Business Success
Protect your service business and clients with legally binding service contracts. Learn what to include and when they're necessary.
Your goal as a service business owner is to ensure that you are providing quality services to your clients. One way to do that is by having a service contract in place.
A service contract is a legally binding agreement that outlines the terms and conditions of the services being provided. It is important to understand what a service contract is, what should be included in it, and when it is necessary.
What is a Service Contract?
A service contract is a written agreement between a service business and its client that outlines the terms and conditions of the services being provided. It includes details such as the scope of work, payment terms, warranties, and limitations of liability. A service contract helps to establish expectations and responsibilities for both the service business and its clients.
Pretty basic right? Let’s dig a bit deeper into the specifics of the document.
What Should be Included in a Service Contract?
When drafting a service contract, it is important to include key elements such as:
Scope of work: what services will be provided and what is excluded from the agreement
Payment terms: how much will be charged, when payment is due, and what happens if payment is not received
Warranties: what guarantees the service business provides for the services
Limitations of liability: what risks are associated with the services and how liability is limited
Termination: how the agreement can be terminated by either party
Dispute resolution: how disputes will be resolved if they arise
Defaults and Remedies: what happens when a party fails to satisfy its obligations under the agreement
Choice of Law and Venue: which state’s laws govern the agreement and where can a lawsuit be filed
Attorneys’ Fees: who pays attorneys’ fees if there is legal action to enforce the agreement
These elements need to be drafted in a way that makes them enforceable by the law. In order to ensure that your contracts are enforced, you need an expert business lawyer to draft them. We recommend that you book a FREE consultation with one of our dynamic attorneys. We can meet your service contract needs.
Benefits of Having a Service Contract
You’re not doing this for the sake of having fancy contracts. Having a service contract provides several benefits for both service businesses and clients, including:
Establishing expectations and responsibilities for both parties
Providing a clear understanding of the scope of work and payment terms
Minimizing the risk of disputes and misunderstandings
Providing legal protection and mitigating costs in case of a dispute or breach of contract
The goal is to build the understanding needed to keep you out of court. With Nalls Davis on your team, you’ll conduct business with ironclad contracts. The benefit is running your business with peace of mind. You and your client will know what the agreement means. Each party can get what they want without worrying about legal pitfalls.
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When is a Service Contract Necessary?
It's important to note that a service contract isn't just necessary when dealing with new clients or business partners. It's equally essential to have a service contract in place when working with family or friends. Doing so can help prevent misunderstandings that can harm the relationship, even in those personal situations.
A service contract outlines expectations, payment terms, and other essential details, helping to establish clear communication and a mutual understanding of what's expected. This not only protects the relationship, but it also ensures that everyone involved is on the same page, minimizing the risk of misunderstandings and disputes.
Conclusion
It’s simple, having a service contract is crucial for service businesses to protect themselves and their clients. At Nalls Davis Attorneys at Law, we specialize in contract law and are here to help you draft a service contract that meets your needs. Book a FREE consultation today to discuss your contract needs and protect your service business.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.
Understanding the Basics of Employment Law: What Small Business Owners Need to Know
In this blog post, we will cover the basics of employment and labor law and what small business owners need to know to comply with the law.
As a small business owner, it is important to understand the basics of employment and labor law to protect your business and avoid costly legal issues. Employment and labor law is a complex and ever-changing area of law that governs the relationship between employers and employees.
So ask yourself, are you confident in your knowledge of employment and labor law?
No? Don’t worry, we’ve got you covered.
In this blog post, we will cover the basics of employment and labor law and what small business owners need to know to comply with the law.
Hiring Practices
Anti-discrimination laws are a crucial aspect of employment law. The Civil Rights Act, Americans with Disabilities Act, and Age Discrimination in Employment Act prohibit employers from discriminating against employees based on certain protected characteristics. It is important to ensure that your hiring practices comply with these laws to avoid discrimination claims.
Immigration and citizenship status are also important considerations when hiring employees. Employers must verify that employees are authorized to work in the United States but should avoid discriminating against employees based on their citizenship status or national origin.
Wage and Hour Laws
The Fair Labor Standards Act governs wage and hour laws in the United States. It requires employers to pay non-exempt employees at least the minimum wage and overtime pay for hours worked over 40 hours per week. Additionally, employers must maintain accurate records of non-exempt employee hours worked and pay. Exempt employees are not eligible for overtime. If you are struggling to determine if an employee is exempt or non-exempt, you should consult an attorney as there are specific rules promulgated by the federal government.
Workplace Safety
Employers have an obligation to maintain a safe workplace under the Occupational Safety and Health Act. This includes providing a workplace free from recognized hazards and complying with OSHA standards. Employers should take steps to identify and address potential workplace hazards to keep employees safe.
Be sure to address the safety precautions of the workplace in your Employee Handbook. If you don’t have an Employee Handbook for your business, you are running a risk. Click here and Nalls Davis will help you create one right away.
Employee Leave and Accommodations
The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid leave per year for qualifying reasons, such as a serious health condition or the birth of a child. Additionally, the Americans with Disabilities Act requires employers to provide reasonable accommodations to employees with disabilities. If your business is covered by FMLA, it is important to comply with these laws and provide employees with the necessary leave and accommodations to avoid legal issues.
Employee Leave and Accommodations should also be covered in your Employee Handbook. You can read more about Employee Handbooks here.
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Workplace Harassment and Discrimination
Title VII of the Civil Rights Act prohibits harassment and discrimination in the workplace based on protected characteristics. Employers should take steps to prevent and address harassment and discrimination in the workplace to create a safe and inclusive work environment. If an employee complains about being harassed at work, then it is important to take steps to remedy the harassment which could, at a minimum, include conducting an internal investigation.
Termination and Layoffs
At-will employment is the default employment relationship in the United States, which means that employers can terminate employees for any reason, except for an unlawful reason. However, there are exceptions to at-will employment, and employers should be aware of these exceptions and avoid discrimination and retaliation claims when terminating employees or implementing layoffs. If an employee has a contract, then the contract should specify in detail when the employment relationship may end and how it should be terminated.
Independent Contractor vs. Employee Classification
There are important differences between independent contractors and employees, and misclassifying workers can lead to significant legal consequences. Employers should understand the differences between independent contractors and employees and properly classify workers to avoid legal issues. If you are hiring an independent contractor, it is best to consult with an attorney prior to making an offer or drafting a contract.
Conclusion
Employment and labor law is a complex and important area of law that all small business owners should understand. By following these basic guidelines, you can avoid legal issues and create a safe and inclusive work environment. If you have any questions about employment law or need legal advice, please do not hesitate to contact us at Nalls Davis Attorneys at Law. We offer a FREE consultation to discuss your employment and labor law needs.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.
Navigating Employee Handbooks: A Guide of Do’s and Don’ts for Employers
Employee Handbooks are essential tools to help establish a transparent and productive work environment.
You’re a business owner, so I don’t have to tell you how important it is to have a clear set of guidelines for your employees. Guidelines help ensure a productive and transparent work environment, but they also help minimize the risk of future legal issues. Employee handbooks are an essential tool for establishing these guidelines, but there are some important dos and don'ts to keep in mind when creating one.
At Nalls Davis Attorneys at Law, we understand the unique challenges that business owners face. That is why we are here to help you navigate the complex world of employment law. In this article, we will provide you with our proven-to-work structure for employee handbooks, so that you can create a handbook that is both effective and adaptable.
The Dos of Employee Handbooks:
Ensure Your Policies and Procedures are Clearly Communicated: Outlining the rules and regulations for employees to follow in the workplace is a recommended practice. Be sure to address things like work hours, time off policies, and other specific workplace-related policies. Setting clear guidelines will help ensure that employees understand expectations and can help reduce misunderstandings and conflicts.
Company expectations for employee conduct and behavior must be clearly defined: Be sure to set standards for workplace behavior, such as anti-harassment and anti-discrimination policies. These policies should be clear and concise; furthermore, they should outline the consequences of any violations. It's important to establish a workplace culture that promotes respect and inclusion. You want to ensure that fairness in the workplace is the expectation for everyone, including management and employees.
Every employee should have easy access to handbooks and opportunities to provide feedback: Whether it’s a hard copy or electronic form, employee handbooks should be easily accessible to all employees. In addition, accommodate employees of different backgrounds by providing language accessible handbooks. It is also important to provide employees with regular opportunities to ask questions or provide feedback on the handbook.
Your handbook is never finished, update it regularly: Expect changes in law and circumstances. Policies of yesterday will eventually become ineffective. It is important that you routinely update your handbook. Review your handbook at least once a year along with any feedback. Determine whether or not any changes should be made.
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The Don'ts of Employee Handbooks:
Don’t go without an employee handbook: Pretty simple, right? All companies need an employee handbook. And I’m not recommending the use of an online template. Rather, a best practice is to hire an attorney to draft the handbook tailored to your specific business. Remember, one size fits all is not conducive to business success.
Don’t include any discriminatory or illegal language: Avoid toeing the line of language that appears to be neutral but has a different impact on protected classes, such as dress code or grooming policies. These types of policies can be viewed as discriminatory and can result in legal action against your company. A rule of thumb: make sure that all of the language in your handbook is inclusive and does not discriminate against any protected classes.
Don’t include any provisions that waive an employee's rights: This includes provisions that waive an employee's rights under the law, such as the right to file a complaint or the right to join a union. These types of provisions are illegal and can result in costly legal action against your company.
Don’t forget to have employees sign off on receiving a handbook: This is another “get it in writing” situation. Listen, employees cannot be held to a policy or standard if they have never acknowledged receiving or knowing about a particular policy. Each handbook should have a provision for employees to sign and acknowledge that they have read and understand the employee handbook. The employee handbook should become part of the regular onboarding process.
Don’t let the handbook serve as a substitute for consistent and fair enforcement: Employee handbooks should be used as a guide for employees, but they should not be used to consistently manage conduct and fair enforcement. If you have policies in place, it is important to enforce them consistently and fairly for all employees.
Creating a compliant and effective employee handbook is a crucial step in building a strong and successful business. At Nalls Davis Attorneys at Law, our experienced employment lawyers can help you navigate the complexities of employment and labor law and ensure that your employee handbook is both effective and compliant. Click here to book a FREE consultation and get started on creating your company's employee handbook.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.
5 Reasons Your LLC Needs an Operating Agreement
Your LLC might be in danger without this very important legal document.
It’s an amazing feeling establishing your own Limited Liability Company (LLC). You’ve put in the time to fully plan out your business idea. If you’re like me, you probably spent hours debating on names, only to find that many are already taken. Your $99 filing fee has been paid and you finally get that email from the Secretary of State.
Approved!
Congratulations! You now have your Articles of Organization. Your business is now registered with the state. So, now all you need is your EIN and bank account, right?
Wrong.
Your LLC needs a governing legal document much like a corporation does. You need what we call an Operating Agreement.
What is an Operating Agreement?
Your Operating Agreement is the legal document that establishes in writing, how your LLC will be run. This agreement allows you to outline the ownership of the company, roles and responsibilities, how profits (or losses) are shared, and membership changes.
It’s also standard for owners (members) to establish how they would wind up business affairs if the company were to dissolve. These are all major rules and structures for the LLC and can help address issues as the eventually arise. Having an Operating Agreement drafted is the best way to build a structure that works best for all members.
For your personal protection and the best interest of your business, we highly recommend that all LLCs have an Operating Agreement. Although most states (including Ohio) have default provisions in place for LLCs, there are very powerful benefits to having your own provisions customized to your company needs. Below, we’ll give you 5 reasons your LLC needs an Operating Agreement.
1. Protect Your Limited Liability
There’s an uncomfortably high likelihood that your business will be sued at some point. This is especially true as you start to generate success. It would be quite risky to go into court without an Operating Agreement in place, particularly if the LLC is owned by a single member. Not doing so could jeopardize your personal liability protection, as you could be viewed by the court as a sole proprietor.
If the court sees that you have formalized the company by governing it with an Operating Agreement, your liability protection will be viewed favorably. The safe bet is to get with a business lawyer and have your agreement drafted. Skipping this step could be very costly down the road.
2. Tailor Your Business Structure
One of the great benefits of an LLC is the flexibility in how a company designs its structure. Members are able to determine how to split profits, how to distribute membership interest, and establish responsibilities. This means that profits and losses aren’t determined based solely on capital contributions.
Members can decide to split profits differently. A member can make a 30% capital contribution while their partner makes a 70% capital contribution, and still set up a 50/50 split in profits and losses based on other contributions. This flexibility doesn’t exist with all business structures and the state won’t set it up for you. You’ll need an Operating Agreement in order to take advantage of this flexibility.
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3. Your Operating Agreement Overrides the State Default LLC Rules
We constantly hear “I don’t need an Operating Agreement; my state has LLC laws.” Well, sure, but how does that align with your business interests?
Without an Operating Agreement, your state’s LLC provisions will govern your LLC. Not all the state provisions will fit the needs and goals of your company. Most business owners find it better to hire an attorney to draft an Operating Agreement complete with guidelines customized to how you want your company to operate.
It’s important to understand that there are certain state LLC rules that your Operating Agreement cannot override. Be sure to consult with your attorney to learn more about which provisions cannot be avoided.
4. An Operating Agreement is Required by Many Banks and Investors
It’s not uncommon for your bank to require an Operating Agreement. Many banks won’t let you open a business account without having this legal document. If your LLC wants to take out a loan, your lender might want to see your governing document. Moving forward without an Operating Agreement can severely limit your access to capital and business transactions.
Investors often require your company have an LLC Operating Agreement as well. Investors and lenders generally have a vested interest in confirming the legitimacy of your business before lending or investing. Don’t limit yourself. Businesses need access to capital. The trustworthiness and competence built into an Operating Agreement will allow your LLC to sit at certain table.
5. Succession Planning in Your Operating Agreement
LLCs with more than one member (multimember LLCs) should be sure to have an Operating Agreement in place. This is important not only because it establishes a contract between the members, but the agreement also answers the following business succession questions:
· What happens to your company when one of the members becomes disabled, passes away, divorces, retires or seeks to sell his or her interest in the business?
· What happens to your interest in the business if you die or become disabled?
The Operating Agreement controls what happens in the above scenarios. You don’t want to be forced into business with your partner’s widow or ex-spouse. That’s not what you signed up for. Be sure that your attorney spells out the next steps to fit your needs. Plan for these situations in your Operating Agreement by including Buy-sell Provisions.
Nalls Davis has handled many disputes amongst members of LLCs largely because they simply don’t have an Operating Agreement in place. We often see infighting within the LLC, it doesn’t matter if your business is a new startup, or a seasoned business; if you don’t have an Operating Agreement or used a DIY template, we urge you to schedule a FREE consultation to ensure full protection of the law.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.
Nalls Law Group is now Nalls Davis
Introducing Jacob Davis, Esq. and the rebranding process.
It’s a very exciting time for our firm. We reached the point where our hands were full, and our heads were pressing against the glass ceiling above. Simply put, it was time to scale the business.
So, we did just that by welcoming some great changes to the firm.
New Name, New Partner
The most obvious change is our name change. Nalls Law Group is now Nalls Davis Attorneys at Law! This name change allows us to present ourselves more clearly for who we are.
The addition of new Partner and Managing Attorney, Jacob Davis, Esq., has been vital to the expansion of practice areas and the development of new business. Attorney Davis brings a wealth of experience and a strong advocacy for providing solutions to clients.
“As an attorney, I want to utilize my skills and abilities to advance the rule of law, passionately advocate for my clients, and promote equity, justice, and inclusion in the legal system,” Attorney Davis states when asked about the difference he wants to make.
Attorney Davis not only strengthens the firm’s transactional areas of practice, but he expands the services into the employment and labor law and fair housing law practice. Jacob has a wealth of knowledge and experience “working on both transactional matters and litigation.”
Going deeper into his experiences, Attorney Davis says, “I have served as a trainer for government organizations and community groups with respect to Title VII of the Civil Rights Act and Title VIII known as the Fair Housing Act.” With these unique experiences, Jacob is able to provide legal solutions for clients with even the most complex matters.
Rebranding
Nalls Davis will continue to roll out this rebranding over the next few weeks. You can expect to see changes to the website, presentations, our digital and social content, and you will certainly hear more from Attorney Jacob Davis.
One thing that will not change is our dedication to our clients and community. As Attorney Davis puts it, “Clients should choose Nalls Davis because we are committed to ensuring that our clients are better off today than yesterday and better tomorrow than today. Through our team-based method, we are able to efficiently and effectively navigate complex legal issues while also providing five-star customer service.”
Couldn’t have said it better Jacob. Welcome aboard.
To schedule a FREE consultation with Attorney Jacob Davis, use the button below.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.
5 Estate Planning Lessons We Learned from Issa Rae’s “Insecure”.
Issa Rae hits home with these 5 Estate Planning lessons.
It’s not often our favorite T.V. shows encourage us to get our affairs in order. With Issa Rae’s riveting HBO comedy series, Insecure, we were given powerful estate planning lessons.
The show follows Issa and her attorney friend, Molly, through the early adulthood challenges of young black professionals. Much of the show is awkward. The estate planning conversations between Molly and her parents in the final season were no exception.
Sure, it was difficult to watch Molly discuss mortality with her parents, David and Carol. But after her mother suffered a second stroke, with the first stroke being kept secret, it became clear that the discussion was necessary.
Following an upset outburst in response to her parents not taking the process seriously, Molly knew she had to try another approach. Something more effective and understanding. This approach leads us to our 5 Estate Planning Lessons We Learned from Issa Rae’s “Insecure”.
Carefully Approach Estate Planning Discussions
Let’s be honest, a discussion with your parents about their mortality and end-of-life plans is not an easy conversation. However, most understand that this less than desirable conversation is important.
According to a study by Independent Age, a website that offers advice and support to aging generations, nearly 80% of people believe it is important to have discussion about aging and death, yet less than a third of people have had the conversation.
To make the conversation more comfortable and productive, Nalls Law Group founding attorney Chris Nalls suggests that you “be patient. Understand that this is likely going to be more than one discussion. Don’t allow yourself to get frustrated. Patience is key.”
Initially, Molly allowed herself to get frustrated and didn’t accomplish much outside of a few requests from her parents written on loose leaf paper. Once Molly was able to reopen the conversation with more patience, her parents were much more receptive.
Bottomline, estate planning talks are difficult for each person involved. Use these tips to help discuss the sensitive topic with an understanding approach:
Listen to understand. Hear them out about their feelings and their wishes.
Know the documents. It helps to have knowledge of the basic documents of an estate plan.
Focus on living, not dying. Build the conversation around living with a peace of mind as opposed to mortality.
2. Make Estate Planning a Family Process
Molly’s big breakthrough with her parents came when they made estate planning a family process. She and her siblings sat with their parents to patiently talk through everything. They were able to help their parents understand the cost of avoiding the process of end-of-life planning.
Estate Planning as a family has its advantages. According to attorney Nalls “communication with your family now can prevent family conflict later. Problems are more likely to arise if the details of your plan aren’t known until a time of grief.” This is not a strain you want to add onto your family in an already difficult time.
Family participation, especially with adult children, keeps everyone in the know. Molly and her siblings are well aware of their parents’ wishes. “Trusted people should be left in charge of your financial and healthcare wishes in case you become incapacitated,” says attorney Nalls. “It would be wise to let your family know who those people are ahead of time, as opposed to them finding out as you lay unconscious.”
Remember that your estate plan is as much about your family as it is about you. Consider the tips below to help guide a family estate planning approach:
Use an empathy approach. Schedule discussion in advance. Allow everyone to gather their thoughts and emotions as they prepare.
Make sure everyone is heard. If adult children feel left out or ignored it could lead to family disputes down the road.
Don’t wait until serious health issues arise. The conversation is much more comfortable when the family isn’t emotionally on edge.
Be clear about roles, responsibilities, and your wishes. Help family prepare for how they fit in your wishes. Make the conversation one that helps everyone understand their role in the plan.
Don’t wait until it’s too late. Book a FREE consultation and start on your estate plan today.
3. Estate Planning is Vital in the Black Family
Issa Rae brought the importance of estate planning in the black family to forefront with Insecure. Although end of life planning was not the primary theme, viewers couldn’t overlook the seriousness it added to the comedy. Perhaps not having an estate plan falls directly into the category of feeling “Insecure”.
A major key to estate planning is to build generational wealth by passing down your assets to heirs. This is critical within black families who continue to face a wide Racial Wealth Gap. The Federal Reserve reports that the median and mean wealth of black families “is less than 15 percent that of white families.” That’s alarming.
What’s worse is a 2015 article in Black Enterprise magazine reported nearly 70% of African Americans had “no will or estate plan” in place and those numbers put black wealth “at risk”. We aren’t doing ourselves any favors through a lack of estate planning. Hopefully seeing Molly and her family have the necessary discussion encourages other black families to take action. The following data points are staggering, and you can make a difference by getting the process started:
Nearly 70% of African Americans have no will or estate plan in place.
Inheritance may be the single biggest contributing factor to the racial wealth gap among socioeconomic indicators, according to the Federal Reserve.
Black people are twice as likely as white Americans to not know how to create an estate plan.
As put by the African American Attorney Network, lack of estate planning is one of several factors that lead to land loss in the African American community.
Your Last Will and Testament is one of the foundational pieces of your Estate Plan.
4. Estate Planning is Not Just for the Wealthy
That’s right. Issa Rae brought attention to a commonly believed estate planning myth. If you still believe that estate planning is pointless unless you’re well off, that’s completely false.
As Molly encouraged her parents to put together their estate plans, her father made it clear that they didn’t have many assets to pass down. He was quite upset with this reality. However, the family determined that all wasn’t lost due to a lack of wealth. The truth is estate planning isn’t solely about who gets your stuff when you die. Planning for yourself in the event of your incapacity is also an important part.
If you’re in the hospital lying unconscious, who will be in charge of your health care decisions? How will this person know what your wishes are? A living will spells out the medical treatments you would accept or decline to keep you alive. It provides a guide, so family and doctors won’t be left guessing what your wishes are when you’re unable to communicate. This portion of the estate plan shouldn’t go overlooked and has nothing to do with wealth.
In addition, a Health Care Power of Attorney allows you to name someone (your agent) to make medical decisions for you if you are temporarily unable to do so. As attorney Nalls puts it “a Health care Power of Attorney gives your agent power to cover all the other health care decisions outside of those covered in your living will.”
He continues on “it really is important to have both documents as part of your estate plan. It’s about having your wishes granted when you can’t request them. This is important for everyone, regardless of socioeconomic status. The COVID pandemic has shown how illness can strike unexpectedly and demonstrated the urgent need for everyone to get these documents prepared before it’s too late.”
Enough with the “only for the rich” myth. Estate planning might sound fancy and wealthy, but truthfully everyone has an estate. Below are more examples of why we all need to have an estate plan:
Planning health care directives in case of incapacity.
Designating a guardian for minor children in the event both parents pass away.
Distribution of real and personal property.
Avoid or minimize the probate process.
5. Work with an Estate Planning Attorney
The last critical estate planning lesson taught in Issa Rae’s Insecure was to hire a qualified estate planning lawyer. Molly made sure to point her parents in the direction of a trusted attorney who could best serve their needs and ensure that their documents say what they want them to say.
It can be very tempting to try the do-it-yourself or online form approach and save some money on the front end. But as stated by attorney Nalls “this can be much more costly and undermine your desired outcomes.”
“It’s easy to misinterpret the language of an estate plan form. If you’re not sure what you’re doing this could be a waste of money.” What’s worse is the disaster that can come of not using an expert. “Far too often we see that estate planning errors aren’t found until after someone passes away, which is simply too late” Nalls continues.
Estate planning gets very complex especially for those outside of the practice area. Brian Sparks, a Fellow of The American College of Trust and Estate Counsel, compares DIY estate planning to “Googling a serious medical procedure and then trying to perform it on yourself.” This is a setup for pitfalls and mistakes that can certainly be tragic for you and your family.
Molly, being an attorney herself, understood the importance of using a trusted expert for these crucial documents. She certainly didn’t want any surprises in her parents’ final wishes. Be sure to hire a trusted professional to avoid these dangers:
Not having the right documents in place to protect your wishes, family, and legacy. An estate planning attorney will help you identify what documents will best serve your needs.
Not including the right language in your documents. Should your documents fail to meet the requirements of language in your state, they might be ruled invalid in part or in whole.
Your documents don’t comply with current state law. Your estate planning attorney will give you the peace of mind that your plan complies to the most up to date laws.
Bottom Line
While enjoying the five seasons of great T.V., we can’t ignore the valuable estate planning lessons found in Issa Rae’s popular show, Insecure. Molly’s efforts to convince her parents to get their affairs in order really showed how difficult this discussion could be. Approaching family with understanding and empathy yields better results. Involving the family, especially in the black family, is vital to a successful estate planning process. Enough of the “I’m not wealthy enough” myth, we each have an estate and should have a plan. If you are ready to get started with your plan, Nalls Law Group would be happy to serve as the trusted professional you need for a customized plan that makes you feel secure.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Law Group LLC and its members do not recommend or endorse the contents of the third-party sites.
The Series LLC is Coming to Ohio
The Series LLC brings changes investors and business owners will want to know about.
Do you hold your investments in multiple LLCs to protect assets and access tax benefits? Ohio’s adoption of S.B. 276 brings exciting news to investors throughout the state.
This new legislation replaces the current Ohio LLC Act with the Ohio Revised Limited Liability Company Act (“ORLLCA”) Effective February 11, 2022. The LLC landscape as we know it will experience some interesting changes with several benefits for business owners and investors. Below, we’ll give you a jump on these changes with a simple explanation.
The Series LLC
Investors in Ohio are well aware of how complex it can be to protect assets. ORLLCA addresses this head on. Let’s talk about the Series LLC.
Series LLCs make it simple to reduce shared liability among multiple properties or other assets. They offer all the benefits of the traditional LLC, but the Series LLC starts as a “Parent” Company.
This “Parent”, or general company, is allowed to have “Children” or multiple sub-series which serve as sub-LLCs used to separate assets in silos. If one of the sub-series gets sued, the assets held by the other “Children” and the “Parent” are protected from any liability. You get the same asset protection that comes with a plan using multiple, traditional LLCs. The difference is you only opened one.
When you establish a Series LLC in Ohio, it will be registered with the Secretary of State as a legal entity. The difference will be found in your operating agreement. Special provisions will give you the authority to add a series whenever needed. Think of it as having LLCs inside your LLC. In terms of asset protection, this is a major benefit to investors.
Tax and Costs Benefits
Series LLCs also bring cost and tax benefits. Let’s say you’re using the current asset protection strategy of setting up multiple traditional LLCs. This strategy requires you to pay registration fees for each LLC.
With a Series LLC the general company is charged with registration fees, but each associated sub-series does not have a fee. This can potentially save investors thousands as portfolios grow.
Tax preparation for multiple traditional LLCs can be a costly nightmare. Try keeping up with 20 EINs. With a Series LLC there is only one EIN for the general company. Each connected sub-series is listed on a single tax return. This cuts down on the time and expenses associated with tax preparation.
The Series LLC also holds the potential to avoid filing Commercial Activity Tax (C.A.T.) in Ohio. If a sub-series reaches $150,000 in annual gross receipts it will appear as a separate taxpayer and be subject to C.A.T.
Forming a Series LLC in Ohio
The process for forming a Series LLC in Ohio is somewhat different than that of a traditional LLC. Working with your business attorney, follow these 3 steps to formation:
Enter special provisions into the operating agreement that establish:
Separate rights, powers, or duties regarding specified property or obligations of the LLC
or the profits and losses related to specified property or obligations; AND/OR
A separate purpose or investment, and at least one member associated with each
series.
A statement that the LLC may have multiple sub-series of assets in the articles of organization.
Separate record keeping for each sub-series and its assets.
It would be wise to include a separate operating agreement for each sub-series that refers to the operating agreement of the general company, identifies the member(s) of that specific sub-series, and speaks to the purpose of that sub-series.
The articles of organization must make a statement authorizing the use of one or more sub-series. Investors and business owners must be very particular about maintaining separate bookkeeping for the financials of each sub-series. Mixing funds from one sub-series to another could risk the liability protection between sub-series, and the company in general.
Want to put together an Asset Protection Plan? Schedule your FREE consultation below.
How the Series LLC is Governed
The Ohio LLC Act grants specific rights and powers to the Series LLC. According to the Act, the Series LLC is afforded the following governance:
1. Powers
Sue and be sued;
Contract;
Hold and transfer title to assets of the company and general and each sub-series; and
Grant liens and security interests in assets of the company in general and each sub-
series.
2. Distribution Rights
a. Distributions can only be made to those members (owners) associated with a particular sub-series.
3. Membership Rights
One member (owner) must be associated with every sub-series within the company in general. If the company has multiple members, a member may be associated with only one sub-series, or every sub-series (except for the member chosen to be associated with each sub-series).
The Ohio LLC Act governs the Series LLC in several other ways. This includes the liabilities, assets, and management. Click here to see all of the upcoming changes.
Conclusion
The Series LLC will be a major change for Ohio business owners and Real Estate Investors who are looking to protect their assets. With a Series LLC, the strong asset protection gained through setting up multiple traditional LLCs can be achieved through one filing with the Secretary of State. This saves time, money, and confusion that comes with the traditional method. Investors can reap tax and cost benefits and shield assets from liability by following requirements within the statute. Consult a business attorney to assure your Series LLC is properly formed and in compliance with the requirements.
Disclaimer
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Law Group LLC and its members do not recommend or endorse the contents of the third-party sites.