Many clients who have established a business as a corporation, or even better, as a limited liability company are worried that their creditors who obtain a judgment will be able to pierce the corporation and attack their personal assets. This creditor tactic is referred to as piercing the corporate veil. One of the most important functions of …
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. Federal statute 46 USC 11109 …
Fishermen Exempt From Wage Garnishment: Federal Law Read More »
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 may not be best for …
Sole Proprietorship Advantages For One-Owner Businesses and Professions Read More »
I got a call from a Florida businessman who owned a business Jacksonville which had been sued. The court awarded a judgment against the business, but there is no judgment against the owner personally. The owner is considering closing down the debtor business and starting a new company doing similar kinds of things for similar …
Asset protection clients often deal with judgments against both themselves individually and their closely held business. Many of my clients believe that they can deal with their businesses’ liability and potential judgment by closing or bankrupting their business. When I asked them how they plan to make a living after they close their business the …
Fraudulent Transfer From Debtor Company To Newly Formed Entity In Same Business Read More »
When a small family business encounters business problems they do everything they can to preserve money. One of the first steps usually is reducing or deferring salary payable to the owners. Some businesses borrow money from other family members to pay bills.
A professional cannot use a corporate shield to protect himself from malpractice. A professional is anyone who under Florida law is required to obtain a license in order to practice their trade. Florida statutes provide for distinct entities engaged in a professional business.
