Top 3 Tax Law Changes Affecting Small Businesses

On December 22, 2017, President Donald Trump signed a sweeping tax bill that changed taxes for nearly all Americans. While some of these changes affect individuals’ taxes, the top 3 changes that affect small businesses are as follows:   1. 20% TAX DEDUCTION FOR PASS-THROUGH ENTITIES The net profits of S-corporations, LLCs, and sole proprietorships “pass through” the entity and are taxed at the Read More

Penalties For Not Filing Your LLC Or Corporation Statement Of Information

After forming LLCs or corporations, people often forget to properly manage the company. This is necessary to maintain limited liability protection. This includes holding annual meetings, paying fees, and filing taxes and documents. Pursuant to California law, every California LLC and corporation (non-profit and for-profit) must file a Statement of Information with the California Secretary of State within 90 Read More

Revocable Trusts For Married Couples With A Non-Citizen Spouse

Regardless of whether you and your spouse are U.S. citizens, you should set up an estate plan, which consists of an Trust, Advance Health Care Directive, Financial Power of Attorney, and Will. Non-citizens can inherit property from a U.S. citizen, but if your spouse is not a citizen your estate plan must be carefully drafted. Only the estates of individuals who leave a gross estate of more than $5.49 million Read More

What Is A Buy-Sell Agreement And Why Every Business Needs One

A Buy-Sell Agreement is a legally binding agreement between co-owners of a business that governs how a co-owner’s ownership interest is handled if that co-owner dies, is forced to leave the business, or chooses to leave the business. The situations where a Buy-Sell Agreement would be triggered include a co-owner attempting to sell his ownership interest to a third party, divorcing a spouse, declaring for Read More

Understanding The California Uniform Fiduciary Access To Digital Assets Act

There is not currently any federal law regulating access to digital assets. The Revised Uniform Fiduciary Access to Digital Assets Act (UFADAA) took effect in California (California Bill AB-691) on January 1, 2017. The UFADAA allows you to give an executor, administrator, trustee, power of attorney agent, or court-appointed conservator authority over your digital assets upon death or incapacitation. This Read More

Validity Of Non-Compete & Non-Solicitation Clauses In California

Many business owners wish to include non-compete and non-solicitation clauses in contracts. A non-compete clause (or separate non-compete agreement) typically prohibits one party from competing against the other party for a specific duration after the contract ends. California courts frown upon non-compete clauses, and there are pitfalls when including these clauses in contracts. Section 16600 of the Read More

5 Advantages Of Common Law Legal Systems

Common law refers to the law made by judges and not the parliament. It's basically that law that develops organically in due course and is based on the accepted shared values and customs of society. As judges consider both criminal and civil matters, they make informed decisions, develop precedents, and deliver rulings. When all these things are taken together, they constitute common law. Some civil laws like Read More

Minimize Estate Taxes Using Irrevocable Life Insurance Trusts

An Irrevocable Life Insurance Trust (ILIT) is a very important estate planning tool that provides many benefits, the most beneficial of which is tax savings. An ILIT is an irrevocable (non-amendable) trust that is both the owner and the beneficiary of one or more life insurance policies. If the insured is a married person, the non-insured spouse and children are most often beneficiaries of the ILIT. If the Read More

The Family LLC – A Unique Estate Planning Tool

A Family Limited Liability Company (FLLC) is a legal entity that serves as an estate planning tool. The main goals are to protect assets from creditors, provide management experience for younger generations, ensure who acquires a direct interest in the family business, prevent fragmentation of the family business and assets, and reduce estate and gift taxes. A Family Limited Liability Company (FLLC) is a legal Read More

Title Insurance Issues After Transferring Real Property To Revocable Living Trust

If you know someone who already has a living trust, they may be in danger of losing their home! Anyone who has transferred real property to their revocable trust must consider the dangers of their title insurance policy becoming invalid after such a transfer, and should explore their options.   What is title insurance? When you purchase real property, most often you also purchase a title insurance Read More