Business Asset Protection

How To Protect Your Assets If You Cannot Pay a Business Debt

How To Protect Your Assets If You Cannot Pay a Business Debt

If a business is facing financial difficulty, the business owner is usually concerned about what will happen to the business assets and their personal assets if the business can’t pay its lenders. The inability to service business debts likely will cause a default under the terms of the business debt…

Reducing Self Employment Tax With LLC Taxed as Partnership
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Reducing Self Employment Tax With LLC Taxed as Partnership

Reduction of employment taxes is part of asset protection planning involving limited liability companies. An LLC may elect to be treated for income tax purposes as either a partnership or a Subchapter S corporation. Advisors typically suggest taxation as an S corporation in order to minimize the amount of LLC…

Can an LLC Have a Second Member Without the Right to Profit Distribution?

A creditor’s collection against a debtor’s membership interest in a limited liability company is limited to a charging lien against the debtor’s “transferable interest.” A transferable interest makes the member eligible to receive LLC distributions. The Florida Statutes state that the charging lien is the creditor exclusive remedy against a…

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Fishermen Exempt From Wage Garnishment: Federal Law

Federal law wage garnishment rules are different than Florida’s rules and exemptions from wage garnishment. For instance, federal law permits garnishment of 15% of net wages without regard to any state exemptions. I just learned about a federal wage garnishment exemption I had never before encountered in asset protection work….

Sole Proprietorship Advantages For One-Owner Businesses and Professions

Most one person professional business- such as attorneys or physicians- operate as a legal entity (P.A. or L.C.) . The professional is an employee who receives from the business a combination of salary and profit distributions. This business arrangement has tax advantages because it can reduce employment taxation, but it…