Important Considerations For Choosing A Business Entity

When you start a new business, or sometimes, when your existing business grows, or your personal assets change significantly, it’s time to evaluate or re-evaluate the type of business entity your company runs under. Many small businesses begin as sole proprietorships because of the ease of setting up and running this type of business entity. The best type of business entity for your specific situation strikes an optimal balance between ease and expense involved in fulfilling legal requirements for setup and operation; tax matters; and protection against liability. It can be a complicated part of corporate law, and consulting a business lawyer is a smart way to learn which type of business entity makes the most sense for your specific circumstances.

Formation & Ongoing Requirements

A sole proprietorship doesn’t have legal requirements for formation, aside from local business license applications and filing to pay state and federal taxes, and regulation for ongoing operation is minimal. While they’re easy and inexpensive to form, sole proprietorships can expose the owner to unnecessary risk. A Limited Liability Company (LLC) requires more formal documentation and fees to establish and run, but also offers more protection for the owner’s personal assets than a sole proprietorship. Corporations offer asset protection and certain tax advantages, but they’re more costly and complicated to set up, and they require some ongoing recordkeeping for things like maintaining a board, documenting corporate actions, or possibly conducting shareholder meetings.

Tax Matters

Taxation is another key consideration when choosing a business entity. Each type of business structure has different tax implications, such as whether taxes are paid on your personal tax return or through the business entity; which expenses may be deductible for your business; and the rate at which you pay taxes. There are many factors that can affect your taxation, so consulting with a tax professional on how each type of business entity would work in your case is an important step in your research.

Protect Your Personal Assets Against Liability

Another important factor in choosing a business entity is asset protection. Each type of business entity offers a different level of protection for the owner’s personal assets in the case of liability claims or judgments against the business. A Sole Proprietorship can expose your personal assets to business liabilities, including acts of your employees. A Corporation or LLC, if operated properly, can protect your personal assets from business liabilities. You may also consider the level of overall risk involved with your business in making your entity selection. A construction company is more prone to lawsuits than, say, a small accounting firm. While owners of both would likely carry insurance to protect against liability claims, the right entity structure can also shield their personal assets if a claim exceeds their liability insurance limits.

Business Law And Entities Are Complicated. Don’t Try To Go It Alone!

Although you’ll find a great deal of generic advice about choosing a business entity online, the advice of an experienced business lawyer can help you avoid unforeseen legal disputes and prevent costly mistakes. There is no one-size-fits-all answer about choosing a business entity, because the “right” choice is a balance among several factors and how they apply to your specific business situation. Call or contact us online for a consultation, and we’ll help you determine what type of business entity is best for you and your company!

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¿Qué pasa cuando alguien muere sin un testamento?

Cuando alguien muere sin un testamento, las cosas pueden complicarse. ¿Quién es el responsable de tomar decisiones? ¿Cómo se sabe quién hereda qué activos? Cuando no hay un testamento que nombre a un representante personal o beneficiarios, puede ser difícil para una familia saber por dónde empezar cuando se trata de manejar los bienes de sus seres queridos.

Afortunadamente, cada estado tiene leyes que rigen la forma en que la propiedad y los bienes de una persona fallecida, conocida como difunto, pasarán a sus herederos cuando esa persona muere sin un testamento válido. Esto se llama sucesión intestada. Las leyes de sucesión intestada proveen orientación para determinar los beneficiarios de los bienes del difunto que habrían sido determinados por el testamento.

Según la ley de la Florida, los miembros de la familia del difunto tienen derecho al patrimonio del intestado:

• Cónyuges: si el difunto estaba casado en el momento de la muerte y no tenía hijos, nietos, etc. (llamados descendientes directos), el cónyuge hereda todos los bienes del difunto. Lo mismo se aplica si el cónyuge sobreviviente es también el padre de los descendientes lineales.

• Hijos: cuando el difunto tiene hijos con otra persona que no sea el cónyuge sobreviviente, los activos se dividen entre el cónyuge del difunto y los hijos: el cónyuge sobreviviente hereda la mitad y los hijos dividen la otra mitad.

• Padres: en los casos en que el difunto no tenga cónyuge sobreviviente o descendientes directos, los padres del difunto son los siguientes en heredar los bienes del difunto.

• Hermanos: por último, si el difunto no tuviera cónyuge sobreviviente, descendientes lineales o padres vivos, cualquier hermano sobreviviente compartiría la herencia.

Las leyes de sucesión de casos específicos cubren algunos, pero no todos los casos

Los activos que se mantienen conjuntamente (entre cónyuges o persona con derechos en supervivencia), o que se mantienen en un fideicomiso activo, no están sujetos a una sucesión intestada. Debido a que las leyes de sucesión intestada solo reconocen a los parientes legales, las parejas no casadas no heredan los activos de su pareja a través de la sucesión intestada.

Testamento puede ser requerido

Es importante saber que la sucesión intestada no transfiere automáticamente los activos del difunto a los herederos. El patrimonio del difunto puede exigir una sucesión para transferir los bienes a sus herederos. Un abogado experimentado en sucesiones puede ayudarlo a tramitar este proceso legal sin problemas.

Para obtener asesoramiento, póngase en contacto con los abogados de bienes raíces en Overstreet Law, P.A. en www.kisslawyer. com o llame al 407.847.5151.

El Osceola Star . February 15 – 21 2019.

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Don’t Be Surprised By Exceptions; Have Your Title Commitment Reviewed By A Real Estate Lawyer

The title commitment is one of the most important documents in a real estate transaction. However, most buyers have no idea what the title commitment means or what title insurance covers. The title commitment is a document issued by the closing attorney or title company that will be issuing title insurance to the after closing. The title commitment gives a detailed account of the ownership of, and liabilities associated with, that property, and it explains precisely what the title insurance policy will and will not cover, once it’s issued. Having your title commitment reviewed by an experienced real estate lawyer protects your interests and investment by making sure no surprises are lurking in the text of your title commitment.

Overview Of The Title Commitment

In addition to spelling out the requirements necessary to provide title insurance, the title commitment provides a detailed listed of any liens, obligations, or other burdens that may be attached to the title for the property, and limitations on the use of the property, like easements; existing leases; CC&Rs (covenants, conditions & restrictions, such as the rules of a homeowners’ association). The title commitment document addresses all of this information in three sections, called Schedules.

  • Schedule A – Schedule A contains basic information about the real property and transaction: The purchaser and mortgage lender, legal description of the property, the effective date of proposed title insurance policy, along with the type of policy, coverage amounts and current title vesting (ownership).
  • Schedule B-I – Schedule B-I lists all of the requirements that need to be met before the property title is considered marketable, and the insurance policy can be issued to the buyer (proposed insured). This might include things like the deed from seller to buyer, mortgage documentation between buyer and lender, satisfaction or release of any liens, corrective deeds from prior owners, or probate for a deceased owner.
  • Schedule B-II – Schedule B-II specifies items that the title insurance policy will not cover: The exceptions. There are standard exceptions for issues like unrecorded easements, encroachment, rights of tenants who occupy the property, and municipal liens. There may also be property-specific exceptions for things like CC&Rs, recorded easements, or agreements with utilities.

Real Estate Lawyers Help You Deal With Those Requirements and Exceptions 

An experienced real estate lawyer can help ensure you are aware of any issues in your title commitment that may delay closing and receive a title policy that best protects your interests.

Often they can also help you exercise your rights under the sales contract to require the Seller to resolve the title issues or have some of the listed exceptions covered by the title insurance policy. The real estate lawyers at Overstreet, Miles, Cumbie & Finkenbinder help buyers and sellers in Kissimmee, St. Cloud, and throughout Osceola County make fully informed choices for successful transactions. Give us a call at 407-847-5151 or contact us online to schedule a consultation and we’ll let you know how we can help you get what to expect from your real estate transaction, without unwelcome surprises.

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