Full service estate planning and tax attorneys for the North Carolina Sandhills.

phone icon910-944-9555
divider

Archive


What is a LLC?

/ 0 Comments

A LLC is a “Limited Liability Company”- a hybrid entity that offers the asset protections features of a corporation, but which generally contains the flexibility, ease of administration and tax characteristics of a partnership.

Read More
separator

How do I create a LLC?

/ 0 Comments

Register your LLC with the Secretary of State in the state where you want it to be formed by filing Articles of Organization.  Once the Articles of Organization are filed, the LLC then needs to have an Operating Agreement (“OA”) which controls and protects the rights of the LLC owners from each other and outside creditors.  Many statutory “default” provisions apply in the absence of an OA – not all of these defaults are favorable depending upon the circumstances.

Read More
separator

Who should form a LLC?

/ 0 Comments

If you are a business owner looking for asset protection, only one layer of tax (as compared to a C Corporation), and ease of administration (which means lower overhead), then a LLC might be right for you.

Read More
separator

How do LLCs provide asset protection?

/ 0 Comments

LLCs provide inside-out and outside-in asset protection.  This means that a creditor of the LLC cannot come after you individually and that one of your individual creditors cannot easily access the assets in the LLC.  In NC, anyone going after the individual owner’s interest in the LLC only has one remedy called a “charging order” (note – some other states allow liens on LLC interests and then foreclosure on those interests).  A charging order says that if the owner who was liable was going to receive a distribution, the creditor with the charging order would get the distribution instead.  But note- the solution to this is simply not to make distribution.  Thus, the creditor of the member receives nothing!!

Read More
separator

In regards to tax, what is the difference between a LLC and a Corporation?

/ 0 Comments

A C Corporation experiences double taxation in that both the Corporation and the shareholders pay tax separately on the same earnings- corporate earnings and dividends respectively.  S Corporations are similar to LLCs in that they both have “pass through” income, meaning that the income (or losses) pass through directly to the owners.  But the main difference between the two is that LLCs have far less administrative burden and LLCs do not have restrictions on who can be an owner (while a S Corporation does).  S Corporations also have other advantages and disadvantages as compared to LLCs, so the choice must be carefully weighed.

Read More
separator

My LLC is formed, now what?

/ 0 Comments

Every year in NC you must send the Secretary of State $200 with an Annual Report.  There is no federal or NC income tax on LLCs (if taxed as partnerships), but information returns must be filed and the income/loss allocated to the owners must be reported.  In addition you need to keep good records and make sure that any business related expenses and/or income goes through the business’ bank account (and not yours personally).  In other words, operate like a business.  Contracts should be signed by a LLC Manager – not you personally.

Read More
separator

Does a LLC get a EIN (or do I use my social security number)?

/ 0 Comments

An EIN is required if the LLC has two or more members.  This is commonly called a multi-member LLC.  A single member LLC will need an EIN as it will be considered a “disregarded entity” by the IRS (unless the LLC elects to be taxed as a Corporation).

Read More
separator

Is Asset Protection legal and moral?

/ 0 Comments

Definitely.  Protecting one’s assets is a legitimate goal and many of the strategies and devices used in Asset Protection are also used for and grew out of legitimate business purposes and techniques.  Morally, you should protect your assets in order that you are not a burden on society and can support yourself and your dependents.  Also, taking business risks promotes prosperity in society and builds wealth for your family’s well-being if successful.  If unsuccessful, you can limit the damages to all concerned by appropriately using asset protection.  Bankruptcy is for those who fail to use proper protection – but even then as a society we have decided it is important to give bankrupts a “fresh start” by cancelling their debts.

Read More
separator

How much does Asset Protection cost?

/ 0 Comments

It varies.  But there are ways to protect assets for individuals of nearly any net worth.  Many techniques are simple and easy, but there are very expensive and complex techniques as well.

When should I consider my Asset Protection plan?

  1. If you wait until you already have a known and existing creditor, it is simply too late.

What are some of the Asset Protection strategies you offer?

We offer everything from Trusts to LLCs to Insurance Planning.  Offshore and on-shore.  Simple and complex.  You will be amazed in the numbers of ways you can protect your assets for yourself and your family and do so legally!

Read More
separator

What is a Notice of Deficiency?

/ 0 Comments

It is the last letter that the IRS must send to all taxpayers before the IRS can begin collecting tax (after it has determined that tax is owed – usually as a result of an audit).  Once the notice is sent, the taxpayer has 90 days to file a Petition in Tax Court.  For this reason, it is also commonly called the 90 day letter.

Read More
separator