Many people believe the trust protection myth, i.e. they believe that once they create a revocable living trust and change the ownership of their accounts and property from themselves as individuals to their trust, those accounts and property are protected from lawsuits. This is not true. While trusts commonly protect a beneficiary’s inheritance, few trusts […]
Starting on January 1, 2024, under a new law called the Corporate Transparency Act (CTA), owners of certain business entities must file a report with the federal government including details regarding the ownership of their entity. The CTA was enacted to help combat money laundering, financing of terrorism, tax fraud, and other illegal acts. If […]
Most US businesses have a pass-through taxation structure, meaning they are not subject to corporate tax. Instead, they have their income “pass through” to their owners to be taxed on their individual income tax returns. Pass-through businesses have simpler filing and a lower tax rate than C corporations because they avoid double taxation. Pass-through business […]
Owning a business involves risk. There are no guarantees that the founders of a company will get along, a product or service will sell, or market conditions or competitors will not create unanticipated barriers. While entrepreneurs must be willing to take a leap of faith, there are steps they can take to reduce risk, both for […]
