5 Mistakes Start-ups Make When Forming Their Business
It seems that everywhere you look, a new start-up is trying to make it big with a game-changing idea. But it’s only the ones that can turn that idea into a reality that reach business success. Too many start-ups fail to transition from concept to execution or encounter significant setbacks along the way. While developing your growing start-up, don’t make the common mistake of disregarding tedious but vital tasks such as making sure all your legal, insurance, financial, and tax ducks are in a row.
Establishing a solid legal system can help you avoid costly mistakes and save time and stress down the road. Many entrepreneurs struggle with developing such systems because they don’t foresee the most common mistakes start-ups make. Avoiding these only takes a little self-awareness and planning, so read on to learn how to sidestep the five biggest legal mistakes a start-up can make.
How Estate Planning Can Bring Blended Families Closer
Yours, mine, and ours, in today’s modern family, it’s oh so familiar. The blended family is the product of 2nd or more marriages, in which one or more of the parties comes with children from a prior marriage. And then, they may even go on to have children together.
Suppose you have or are part of a blended family. In that case, it’s essential to understand how estate planning could be precisely what you need to keep your family out of conflict and in love, both during life, in the event of incapacity, and when one or more of the senior generation or parents dies.
Let’s begin with understanding where potential conflicts could arise when you have a blended family.
Why Operation Agreements Are a Must For Business Owners
As with so many things in life, some of the same qualities that help small businesses succeed can also lead to their demise. Fortunately, much of that risk can be lessened through operational excellence.
For example, the owners and managers of small businesses often know each other before going into business together. Sometimes, they’re even related. Preexisting relationships can help propel small businesses forward, especially when there are high levels of trust and competence.
Unfortunately, however, familiarity is sometimes accompanied by a lax attitude toward operational formalities. Owners and managers may skimp in critical areas such as:
Governing documents such as articles of incorporation, partnership agreements, and bylaws;
Solid or regular auditing and accounting practices; and
Shareholder meetings and minutes.
Why You Need a Trust – Even if You Aren’t Rich
When you hear the words, “trust fund,” do you conjure up images of stately mansions and party yachts? A trust fund – or trust – is actually a great estate planning tool for many people with a wide range of incomes who want to accomplish a specific purpose with their money.
Simply put, a trust is just a vehicle used to transfer assets, and trusts are especially useful for parents of minor children as well as those who wish to spare their beneficiaries the hassle of going to Court in the event of their incapacity or death.
And why would you want to keep your family out of court (known as avoiding probate)?
Estate Planning Awareness Week: Don’t Fall Victim to These Common Myths
This week is Estate Planning Awareness Week. To that end, we are geared towards helping you become aware of and better understand common estate planning myths. Left unaddressed, these myths can create serious trouble for your loved ones, often leading to intrafamily conflict, permanently damaged relationships and lengthy and expensive court battles.
With Tax Laws in Flux: What Should Business Owners Do Now?
If you read last week’s blog titled, “House Democrats Propose Sweeping New Changes To Tax Laws That Stand To Have Major Impact On Business Taxation and Estate Planning—Part 1” or if you’ve been following the news about the coming changes, you know that none of us know what will ultimately happen – or even when we will know the final outcome.
Given that the 2017 Tax Cuts and Jobs Act was not passed until December 2017, and the same thing could happen here, with some provisions potentially impacting your taxes this year, as well as provisions that could impact decisions you’d make for next year, but those decisions must be made now, what should you do?
With Tax Laws in Flux: What Should You Do Now?
Last week in our blog titled “House Democrats Propose Sweeping New Changes to Tax Laws That Stand To Have Major Impact on Estate Planning – Part 1,” we discussed the new bill’s proposed changes to tax rates and estate planning vehicles, including several different types of trusts.
Here, in part two, we’ll focus on what you should do now, given that the tax law is in flux and we may not have clear answers until close to the end of the year.
House Democrats Propose Sweeping New Changes To Tax Laws That Stand To Have Major Impact On Business Taxation and Estate Planning – Part 1
On September 13, 2021, Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax laws. Specifically, the Democrats have proposed a number of significant tax increases and other changes to fund the plan, including increases to personal income tax rates and
House Democrats Propose Sweeping New Changes To Tax Laws That Stand To Have Major Impact On Estate Planning – Part 1
On September 13, 2021, Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax laws. Specifically, the Democrats have proposed a number of significant tax increases and other changes to fund the plan, including increases to personal income tax rates and the capital gains tax rate, along with a major reduction to the federal estate and gift tax exclusion and new restrictions on Grantor Trusts that would basically eliminate such trust’s ability to be used as planning vehicles.
While the proposed legislation is still under consideration and far from being finalized, given the broad-reaching impact these changes stand to have, we strongly encourage you to take action now if you would be affected by the proposed legislation if it does pass. With the exception of capital gains rate increase, which could go into effect on transactions that occur on or after Sept. 13, 2021, most of the proposed changes would be effective after December 31, 2021, meaning that you have time to plan now.
That said, due to the time it takes to plan and execute some of the financial and estate planning actions we’d need to support you with, we suggest you start strategizing now. That way, you’ll have plenty of time to take the appropriate action before the end of the year. With that in mind, here we’ll outline how the proposed tax law changes stand to affect your financial, tax, and estate planning, so you can contact us if you would be impacted if the new bill does pass.