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Legal Alerts - Legal Reliefs
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Quick Contacts
508-771-6272
401-486-4002 [Cell]
gordon@gacarpenter.com
401-453-1700 [RI office]
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Greetings!
In my business law
practice, I come upon information that business owners ought to know --
either to help their business prosper or to avoid a lurking legal
problem.
An e-mail such as this will only be sent when I encounter things important to share with business owners -- an ALERT to a matter likely to need attention or RELIEF to an issue being faced.
Fortunately, there has been little of business significance coming out of our lawmakers -- guess they've all been busy struggling with our state and federal economic issues. So I'll use this opportunity to focus on timeless challenges facing all business persons.
The first item in this issue focuses on the need for everyone to have a personal Life Plan is place. Logically, the second is the ALERT for a business Life Plan.
The third discusses what's needed if your business is borrowing money and not from a bank.
The final item give the core steps to protect your domain name.
I urge each business owner to visit my website where you will find additional items of interest to business owners, including more Alerts and Reliefs. Feedback is welcome of course, and if there is an issue you would like to discuss, just ask. I'm only an e-mail away!
 Gordon |
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IMMORTAL -- ARE YOU?? |
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So you're never going to be sick -- or disabled -- or die?? If I haven't described you, then read further.
Every adult, and certainly all business persons, should have basic "mortality" protections in place.
There are three components of a "Life Plan."
- Health Care Power of Attorney -- You designate those individuals [in order] who will be empowered to make health care decisions for you if you are unable to do so -- including importantly your own instruction regarding "do not resuscitate" [dnr] orders. Changeable at any time. Everyone should have one!!!
- Durable Financial Power of Attorney -- You designate the person [usually one] to handle your financial affairs if you are unable to do so. Please know that your spouse does not have these rights automatically. Also changeable at any time. Everyone should have one.
- Will/Estate Plan -- For persons without a will, the law does provide a distribution scheme, but this is sensible only if you are unmarried, have little to distribute and have parents [1st] or siblings [2nd] who you want to get everything. Read that sentence again and note that a spouse does not automatically get everything!! So that scheme is not desirable. Not for many people, and most assuredly not anyone in business.
- An estate plan can be reasonably simple or sometimes complex, depending on a person's individual situation. Please do not buy a kit on-line thinking you'll save a dollar or two. Kits really belong to the "pound foolish" wastebasket. There are very specific requirements to make a will that cannot be challenged and that is, after all, what you want.
The cost for the basics can be suprisingly modest -- and you'll sleep more soundly. And there are economies if spouses do these together.
Call if you have questions or would like to discuss further.
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Does My Business Need A "Life Plan?" |
The answer is a definite YES!! And if you qualify as a "baby boomer" the answer is a resounding YES!
If owned only by you, you need to think about preserving its value when you can no longer run it, whether because of death, disability or sickness. How? Ideas I've used for clients are
- a mutual aid agreement between two "friendly" competitors that requires one party to come to the aid of another, including a fair value buyout on death [which could be insured].
- If family members are involved with you [like a child in the business] then either an agreement regarding that child's taking over and/or a will provision might do the trick.
- There are ways of transferring business value to children without losing any control. business.
If, on the other hand, the business is owned by you and one or more others, each owner needs to determine whether he or she wants to be "business partners" with the widowed spouse [or whomever else the deceased alone had decided gets the interest] or would it be better to have interest of the the deceased or disabled liquidated into cash and paid out. Of course, appropriate agreements need to be fashioned but once decisions are made, a skilled counselor can create what's needed.
Any of these arrangments are not "cast in stone." So changed circumstances may suggest revisions ought to be made. Also easy to accomplish.
I have assisted many business owners in resolving these issues. I would be delighted to assist you. Simply call to discuss and remember, I never change for initial consultations.
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Cash from any of the three "F"s |
The "F"s are founders, family and friends.
In these economic times may businesses will benefit from a cash infusion -- and the banks just don't seem to be there. So, the business turns to the business owner, family members and friends as sources for support.
But be smart about it and even tax-smart about it.
Owners can invest in their business without it being regarded as permanent capital if it's properly documented and booked as a loan. Only takes a simple note with a minimum interest rate.
The same is true for money from family and this does not mean they become owners, only creditors [and maybe you'll still be invited to Thanksgiving].
And friends can remain friends it you have a similar business-like arrangement.
A true loan does need to carry interest -- this is what Uncle Sam requires. But today rates can be surprisingly low.
And any or all of the above can even be secured.
If you are the family member or friend being asked to advance funds then you need the assurance that the loan can be claimed as a tax loss if things turn out for the worst.
DO NOT borrow from yourself or others without proper documents. The results will be unpleasant for all involved.
I have even had clients who have successfully made loans to others and reaped rewards much larger than typical bank interest. Perhaps this might be of interest to you.
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More YIPping |
My website has a piece about YIP -- your Intellectual Property and its surprising value to your business.
This short piece will focus on the core steps to protect your website/domain name. [Doesn't everybody have at least one today!!]
- Only use a major "Registrar". A major is someone who will be around and this may not be the "newbie" who lures you with a $19.95 special. Majors include Network Solutions, Register.com and GoDaddy.
- Register yourself. It's not a difficult task and this way you know who owns the domain -- a critical issue.
- List only yourself for the "big four." When registering you'll be asked to specify the authorized contact for four jobs -- registrant, administrative contact, technical contact and billing contact. In all cases specify yourself!! Thus you and you alone will have e-mail and other control over the domain.
- When providing your e-mail address, be sure to use one you intend to use for a long time. Same for physical address. That's where the registrar will send notices and you want to be sure to get them.
- Check the registration periodically. Four or more times a year check to be sure there are no unauthorized or improper changes. Easy to verify all information by going to a registrar and through the WHOIS function with your domain name. Report anything amiss to your registrar.
An important point -- you can get a domain name well in advance of any intention to use it for a website. I always counsel new business clients to get their domain name even before chosing a business name. Likewise, do the same if you are an existing business thinking about branching out or coming up with a new tradename. It's an inexpensive and easy first step.
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My website has much more information about my practice and credentials. Just click on the link below and you'll be there.
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REMEMBER --
Other Legal Alerts and Legal Reliefs are available at my website.
Gordon A Carpenter, Attorney and Counselor at Law |
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