Limited Liability Company (LLC)
Basic LLC Formation Kit - $495 attorney fee plus state filing fees. You will receive up to 2 hours of legal consultation plus your standard member-managed LLC Operating Agreement, federal tax ID, filing of your business name with the Secretary of State (usually a fee of $125 payable to the State), and a discussion of your status as an independent contractor.
We also provide additional fee-based services for contracts, leases, employment agreements, tax planning and sales tax issues. Learn more about LLCs HERE.
Tax Planning LLCs
We specialize in creating LLCs that do more than provide a basic legal entity for conducting your business. While most owners use Ohio for their state of organization as domestic LLCs, the LLC laws of the State of Nevada offer unique planning, tax and creditor protection options.
For the right business owner, we can use the LLC to:
- Shift income to other family members to take advantage of lower taxes.
- Disproportionately allocate expenses and/or income to select Members.
- Create voting and nonvoting interest to control the business.
LLCs can also be used for family investment purposes and as an alternative to trusts for estate planning. LLCs are excellent methods for multiple owners of family farms, recreational land and vacation property, and real estate in general. Call us to discuss how we can help you take better advantage of the laws for you and your LLC.
Tax Strategies for Business Owners and Individuals
"Making Every Dollar Count"
OK, time for a real situation to show how we can help you keep more of what you earn by using effective tax strategies. We can help your accountant when it comes time to fill out your tax return.
ABC had significant income projected for the year. Some assets were owned by ABC and others in name of Owner personally. ABC. Owner was in the top income tax bracket (35% federal and 6% state plus 15.3% FICA).
Our objective: reduce taxes, use business earnings for family, and minimize legal exposure.
When it comes to eating an elephant, you do so by taking small bites. Here's what we did:
- Created new LLC to lease equipment to ABC - maximized depreciation deduction. Moved assets from Owner to LLC to get liability protection.
- LLC hired children under age 18 - no FICA and lowest tax bracket - plus each child had earned income qualifying for deductible IRA contribution.
- Leased property owned by Owner and spouse to LLC - obtained full deduction for real estate taxes, improvements, utilities, maintenance and insurance on Schedule E Form 1040, while rents avoid FICA tax because it is unearned income instead of Owner's wages as he was being paid prior to planning.
- Moved certain management employees to separate LLC that leases their services back to ABC - created opportunity for better health plan using deductible HSA accounts and a tax deductible life insurance program for supplemental retirement benefits.
These strategies were implemented over th course of the year - we reduced taxes by 60% overall. While your savings and situation may not resemble ABC, we can still offer strategies and options to help you keep more of what you make.
Call us if you're tired of paying too much in taxes, whether its income, gift and/or estate taxes. Let us review your Forms 1040, K-1 and 1120 for opportunities to save taxes, defer income or shift from ordinary income to tax advantaged income.
Business Consultation ServicesGet your own "Counsel on Demand!"
How many small business owners can afford to keep an attorney on retainer, much less hire one as a full time employee? Control your expenses and maximize your results by using our "Counsel on Demand" service.
We offer the following transactional legal services:
- Leases. Get a legal opinion on a proposed lease or have us draw one up for you. It could be for an office, land, farm rent, equipment or other property.
- Business Agreements. Every business operates with contracts. We can review an agreement to determine your rights and options. Or we can draft an independent contractor agreement to avoid employer-employee liability.
Examples of business agreements in use by our clients include maintenance agreements, software related contractor agreements, advertising and marketing agreements, and equipment leases.
- General Counsel Consulting Services. John spent 25 years in corporate business in various capacities as in-house legal counsel, marketing VP, and product development. His experience includes the ability to assist you with your strategic and operational business planning. He focuses on results and practical implementation to improve small businesses on Main Street America.
We offer consultation in your office or at our location, by phone, email or fax on all types of issues that affect your business daily, whether legal, tax or planning oriented. Hire us for an hour, a day or a week for a specific task.
