A general partnership is a business structure where two or more individuals share ownership, profits, and liability for the company. Unlike corporations or LLCs, a general partnership does not require formal registration with the state, making it a simple and cost-effective option for business owners. However, if you plan to operate under a name different…
A multimember LLC is a type of Limited Liability Company that has two or more owners, known as members. Like a single-member LLC, a multimember LLC offers limited liability protection, meaning the personal assets of its members are safeguarded from business liabilities and debts. This legal structure is popular with business owners due to its…
The federal government imposes an estate tax, while the state of California does not levy any estate tax of its own. For California residents, the only tax that could potentially apply to their estate is the federal estate tax. However, if you own property in a state that does impose an estate tax, your estate…
What Would Happen If I Sold My Parents’ House? After your parents passed away, did you inherit their house? You might be wondering about the sell inherited house tax implications if you decide to sell their property. Understanding these implications is crucial to managing potential taxes on the property’s value. When you inherit a home,…
We have been talking about inheritance taxes at the state level thus far. California is not one of the few states that has an inheritance tax. However, if you inherit property from a friend or loved one who has passed away, you may still need to consider federal inheritance tax implications. The IRS does not…
Estate Planning for Business Owners One size fits all—a phrase that might work for hats, but it’s a disastrous approach when it comes to estate planning for business owners. If you own a business, establishing a comprehensive estate and business succession plan is crucial to ensure that your company’s assets are managed according to your…
Buy-Sell Agreements The buy-sell agreements are a legal contract that outlines the future ownership of a business in case one of the owners decides to leave or passes away. These agreements are essential for protecting the business and ensuring a smooth transition of ownership without disrupting operations. By clearly defining how ownership interests will be…
Business Succession Planning To safeguard your company’s interests, you can use a wide range of tactics. The ones you use will change based on your company’s ownership structure and nature. However, it is crucial to have them set up before you need them. For instance, if you are the only business owner, you can have…
Revocable Living Trust Assets: A Comprehensive Guide With a revocable living trust, you maintain control over your personal assets while you’re still living. After you pass away, you can select beneficiaries and a successor trustee to determine what will happen to the assets held in the trust—all without the assets having to go through probate.…
A/B Trust Structure: Understanding the Key Components Establishing a living trust with an AB provision results in the creation of an A/B trust structure. For the duration that both spouses are living, the trust is revocable. Therefore, before one spouse passes away, the pair may take assets out or terminate the trust entirely. The A…