By: Ted Sutton What a Q-Sub is and How It Can Help Your Business Diane has been obsessed with dogs from a very young age. She was very close with her childhood hound, and enjoyed spending time with other dogs she knew. After the hound’s passing, she vowed to make a...
Garrett Sutton, Esq Articles and Resources
Section 1202
By: Ted Sutton, Esq. Introduction From a very young age, Elong Muskrat was always passionate about providing solutions to the world’s most difficult problems. Over the years, Elong had founded multiple companies in different industries. Many of them failed. However,...
The Corporate Transparency Act
By: Ted Sutton, Esq. The Final Rules Are In – New Requirements Ahead for Every Corporation, Limited Partnership, and Limited Liability Company Introduction Powertainment, LLC is a profitable company that helps aspiring entrepreneurs become the best version of...
How LLCs Can Protect Doctors
By: Ted Sutton Doctors are frequent targets of medical malpractice suits. This is why many of them have malpractice insurance to cover these claims. But what happens when the insurance does not cover the full amount? In this situation, the last thing doctors want is...
Multi-Member LLCs: Structure and Issues
By: Ted Sutton LLC structure with regard to members Graham has been a prominent real estate investor for over a decade. After coming from humble beginnings, he has built a large portfolio that holds over 100 properties. He decided to teach people how he did it, so he...
Are You a California Resident?
Are you a California Resident?You: I am out of your state for six months and a day!California: Hold my non-alcoholic beer! Many people believe that as long as they are outside the state of California for six months and a day they are not residents of California. And...
Design Your Asset Protection Plan
You design a lot of things in your life. The layout of your house, the flow of your business, the requirements on your children, and many more scenarios are all elements of conscious design. Asset protection is no different. There is an architecture, a cohesive...
Corporate Opportunities
Does the Rule Apply to Real Estate? If you invest in and/or syndicate real estate what are the duties to your investors? You owe them a duty of loyalty. But how far does that go? The issue of corporate opportunities is important. I wrote a whole chapter on it (from...
Checkbook IRA
Checkbook IRA – Checkbook LLC Whatever You Call It –There’s Trouble Ahead A recent case has shed light on one of the riskiest retirement plan strategies put forth by promoters. In McNulty v. Commissioner (157 T.C. 10) a U.S. Tax Court brought clarity to the scheme of...
Piercing the Corporate Veil – How to Avoid It
50% of piercing the veil court cases nationwide succeed because owners are failing to properly follow corporate formalities. This exposes business owners to personal liability - meaning they can lose their possessions. What is the Corporate Veil? What is the corporate...
The Wyoming DAO LLC
Is a Decentralized Autonomous Organization (DAO) Right For You? A DAO is an organization operated by a smart contract, which is a computer code running within the blockchain. The 'A' for Autonomous refers to the self-executing nature of it all. If a condition is met...
Has The Time Come For Cyber Bounty Hunters?
The Colonial Pipeline shutdown last week raised troubling questions. How vulnerable is our own infrastructure to cyber attacks? Should cyber pirates be paid, as they were by the Colonial Pipeline authorities? Most importantly: What can we do to prevent such attacks?...
Bylaws and Operating Agreements
Corporations A corporation must have bylaws. Bylaws are the road mapby which the corporation operates. Bylaws set forth how annual and special meetings are called and held, and how officers and directors are elected or removed. Bylaws provide a framework. A lack of...
Why Manager Managed Instead Of Member Managed?
One of the biggest questions we’re asked when clients are forming an LLC is: Should we be manager managed or member managed? The LLC allows for great flexibility. You can be managed by all the members, which is actually the case in most common business settings. The...
California: Pay To Play
California continues to fight for its $800 minimum franchise tax. If you live outside the state but passively own real or personal property worth over $50,000 inside California you are doing business in the state. Sayeth California’s Franchise Tax Board: Please pay...
Corporate Transparency Act Update
Are you aware of the new filing nearly EVERY Corporation and LLC must file beginning in 2022? The Corporate Transparency Act (“CTA”) passed by the Senate and House now requires annual reporting of an entity’s beneficial owners to the U.S. Treasury’s Financial Crimes...
The Five Ws in Every Good Business Plan
You may be in a hurry to put together your business plan. But don’t confuse the frenetic blur of activity with thoughtful preparation. There are some major issues to discuss in your plan, and you’ve got to think them through. Winning business plans map out the major...
Tax Advantages of Incorporating Your Business
You finally came up with an amazing name for your business, your business plan is carefully written and you’re ready for take-off! But as you read up on starting your business you stumble across a word that just keeps coming up: incorporating. Then, at your networking...
Employer Identification Number (EIN)
EIN stands for Employer Identification Number. The IRS requires that you have such a number when you incorporate or form an LLC. Think of an EIN as a Social Security number for your business. You will file all your tax returns using this number and you will need this...
C Corporation
What is a C Corporation? Corporations have been used for over 500 years to limit owners’ liability and thus encourage business investment and risk taking. Their use for this purpose continues to this day. You will hear about both C Corporations and S Corporations....
S Corporation
Is an S Corporation the right entity type for you? This is a great question to explore when starting a business, or changing your existing business from a Sole Proprietor or General Partnership. It can make a difference in asset protection as well as in taxes. An S...