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Here are some questions that very often cross Bill's path:
How does an adjunct in-house controller/counsel work?
Do I need an entity?
Do I need an S corporation?
Why do I need an agreement?
Do I buy stock or assets?
It's a good thing to let my son/daughter take the reigns, right?
What if more than an adjunct is needed?
What is asset protection?
Do I need a bookkeeper?
How does an adjunct in-house controller/counsel work?
First, let's understand that adjunct is "in addition to" -- not "instead of." Let's complement the good management that you have put in place with the ability to readily conference with an experienced, trusted legal/accounting advisor at rates similar to hiring a bookkeeper -- simply not a whopping bill! The adjunct would by and large work as a devil's advocate, a foil, or triage to help you flesh out and describe your legal and accounting issues before (if necessary) moving on. Contact us and we'll talk more about it!
What if more than an adjunct is needed?
Sometimes more “hands-on” is a better idea. If
that is your case, let’s talk about why it is so, and how we can address
it. Contact us and we'll talk more about it!
Do I need an entity?
A favorite example is the client that thought his brother needed a limited liability company (LLC). The question put forth to him was: WHY? With all due respect to the client, he really had no answer. His brother was an artist (painter). The advice proffered was that his brother had little to no exposure to liability in the profession of an artist. The client's money (he was going to pay for this) would be best used in support of his brother.
If one piece of advice could be culled from this web page and nothing else, it is this: Choose an advisor that works toward YOUR needs and character. A place could exist for entities in the appropriate structure. The appropriate advisor should be able to recognize that even though a particular "entity" is theoretically savory, if it does not meet your needs and character, it could potentially be more of a hindrance than a help. Clients have requested that entities be "undone" which were previously set up by other advisors.
Do I need an S corporation?
Let's say you are a doctor and your trusted advisor suggests an S corporation. He charters a corporation and then turns it into an S. Congratulations! You have won the battle but possibly lost the war! Contact us to learn why.
Why do I need an agreement?
My best friend and I have got a great idea. (Great idea starts making a bunch of money.) Best friend experiences a divorce. Unfortunately, the best friend's spouse wants control of your business. That's a question put rhetorically! Oh yes -- you have seen it -- in one form or another. Contact us.
Do I buy stock or assets?
Do you like hidden liabilities? Are capital gains rates more attractive to you than ordinary income rates? You do not have to go far to understand this is a VERY serious matter. We would like to speak with you
It's a good thing to let my son/daughter take the reins, right?
Perhaps now, perhaps later is a better answer. Are they ready? Shouldn't we consider taxes? What about problems within the family? Of course there is more and this really needs to be talked out!
What is asset protection?
This needs to be put in context! Generally, the greatest amount of fervor has been about individuals and not businesses (although, yes -- some asset protection strategies can be employed for businesses, as well, e.g., recapitalizations). Bankruptcy aside, legitimate businesses should not be allowed to shield assets from legitimate business creditors.
Asset protection is about risk management. It does not have to take on a "spurious" nature, when done legally. It is about protecting an individual's assets from the risks of unintended consequences.
Beware of professionals who try to scare you and sell you "asset protection". Various approaches and levels of asset protection are available and one strategy does not suit all people. Often, one person does not have all the expertise necessary to provide all aspects of a plan. It is strongly suggested that you retain the proper trusted advisor to help you put together your asset protection team.
Do I need a bookkeeper?
It simply is not believed how many times this question comes up. It is not unusual to have friends and clients that are very intelligent, creative, and capable in their own fields, yet are deficient with their bookkeeping. Some of the best "wealth" advisors in the country will consistently advise you to GET A BOOKKEEPER.
Another misconception that goes on here is that a client believes that just because he/she has purchased XYZ software, all the bookkeeping needs are magically taken care of. The "garbage-in, garbage-out" principle still very much exists, regardless of how user-friendly software has become. Bookkeeping knowledge is needed to make that software work correctly.
There are simply a lot of less-than-quality bookkeepers in the market. You do not necessarily need a certified public accountant (CPA) for bookkeeping, as the cost structure might not meet your needs. However, you should want your bookkeeping firm to use only those persons that are at least aspiring to be CPA(s), arguably, the highest form of accountant in the United States. Go to www.bk2.biz for more information about bookkeeping.
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