Asset Protection and Your Short Term Rental
The explosion of the sharing economy and in particular short term rentals offers real estate investors a lucrative opportunity to generate increased cash flow. However, with new opportunities come with new risks and nothing can be further from the truth when it comes...
Learn the Definition of a Security – It Might Just Keep You Out of Prison
When it comes to raising capital in a way that keeps you on the right side of the bars, it’s essential to know whether what you are offering and selling really is a security.
Maximizing LLC Asset Protection and Charging Orders
LLCs are frequently used to hold assets because of the availability of charging order protection against outside liabilities. Both LLCs and corporations provide asset protection for “inside liabilities,” that is, if a liability is created inside by that entity (e.g....
The Trustee, Executor and Guardian: The Estate Plan Trifecta
Many people ask us on a regular basis 'who' is going to carry out their wishes when they're gone. All of us should have a Will or Trust, but the 'people' that are going to implement it can be a big question mark sometimes. It's common to be concerned about who will...
Your Estate Plan and its Supporting Cast: Mini-Me, Thor, The Office, and The Titanic
When most people hear about an estate plan, they normally associate it with a trust. Certainly the trust is the lead actor in the estate plan because the trust is designed to set forth the plan or instructions for what will happen to your assets in your trust upon...
California Supreme Court Makes It Harder to Call Your Worker a “Freelancer”
It seems like you can’t talk business at all these days without hearing something about the “gig economy.” For those unfamiliar with the term, the gig economy is a combination of two factors. It’s an environment where many people have a ‘side gig’ to make ends meet,...
Using the Tax-Free Sale of Home Exemption on Your Rental Property
One of the financial benefits to owning your home (personal residence) is that the gain from the sale of home can be tax-free up to $500,000 for married couples and $250,000 for single filers. To take advantage of this: You must have lived in the home for two years...
Court Strikes Down the DOL’s Fiduciary Rule. Should this Matter to You?
On March 15, 2018, a federal appeals court based in Dallas, TX struck down the U.S. Department of Labor’s (DOL) so-called “Fiduciary Rule” in the ongoing war waging within the financial services industry for the past two years. This Fiduciary Rule would have required...
The Incredible Shrinking Consumer Financial Protection Bureau
Q: When does the Director of a powerful federal agency draft a report that urges Congress to pass laws that siphon away the vast majority of his authority? A: When Donald Trump is President, and the agency is the Consumer Financial Protection Bureau (“CFPB”) – the...
Who Should be the Beneficiary of Your Life Insurance?
Life insurance is an integral part of financial and estate planning for many. In most cases, people purchase life insurance in order to protect their spouse, children, and/or others who are financially dependent on them from becoming indigent in the event they die....
The NCAA, Trademarks, and Your Business
The NCAA has trademarked over 70 slogans, should your business have at least one trademark? If you were to take a look at my undergraduate and law school transcripts, you’d notice one fairly obvious pattern – my grades were always better during Fall Semester than...
Making the Most From Your Home Inspection
One of the most important due diligence items for buyers of real estate is the home inspection. Whether you plan to live in the home or whether you plan to hold it as a rental, it's a big investment and one you want to make sure you're not overpaying for or that...
How the New GOP Tax Law Affects Owners and Investors of Real Estate
Real estate has always been a major step in achieving the American dream and so there was plenty of concern within the industry that major changes in the taxes affecting owners and investors of real estate would negatively impact the industry and the tax benefits of...
GOP Delivers Tax Reform for Christmas – Joy to the World for Individuals?
Well, folks – it’s finally here. Congressional Republicans spent most of the fall crafting, arguing over, and adding and deleting provisions from a sweeping tax reform bill, and President Trump just signed it into law (and held up his huge signature to the cameras). ...
The Seven “Tenets” of Dealing with Tenants: Tax and Legal Tips for Landlords
I realize rentals are not for everyone. You hear horror stories of trashed properties, non-paying tenants, city citations, “meth-lab rentals”, and the list goes on. But for every such story, there are many stories of those who have built massive wealth through...
Purchasing Homeowner's Insurance- Strategies & Pitfalls
People who have read Mark Kohler’s Lawyers are Liars know that our philosophy with respect to asset protection is the “multiple barrier approaches” to put as many barriers as you can between you and someone who would sue you. For owners of real estate, one of primary...
What Is a Health Care Sharing Ministry – And Is Joining One a Good Idea?
It's that most wonderful time of the year. It's the Obamacare Open Enrollment Period to purchase health insurance coverage for 2018 on the Individual Marketplace. Take note though, The Open Enrollment Period has been shortened this year and expires after December 15,...
Five Benefits of the Solo 401K
For many Americans, saving for retirement is like exercising or eating healthy, we know we should do it but most of us don’t. In fact, a survey published by the Washington Post reported that over 70% of Americans are not saving enough for retirement and a study by...
The New “Centralized Partnership Audit Regime” – A Seismic Shift or Much Ado about Nothing?
An article on IRS audits…just what you needed to read before going to bed tonight, and I’m not kidding. Now, don’t be embarrassed if you haven’t heard of the Centralized Partnership Audit Regime (“CPAR”). If you think it sounds like something out of a George Orwell...
8 Core Tax Concepts Every Entrepreneur Needs to Know
Of the many virtues that entrepreneurs have, one such virtue is the desire and ability to get as much information and knowledge as they can by reading books, attending speaking events, researching on the internet, etc. However, 'taxes' aren't one of the topics...
Creative Planning Options with a Revocable Living Trust
Estate planning is something most know they should do, but most American adults simply haven’t gotten it done. In a survey available from AARP, 60% of American adults do not have an estate plan. The number gets even higher for some minority populations. In most...
Simple is Sexy: Maximize Retirement Contributions for Tax, Asset Protection, and Estate Planning Benefits
Many clients appreciate our ability to see the big picture. For example, when it comes to asset protection, estate planning, and tax planning, none of these practice areas happen in a vacuum, meaning the methods and tools used for asset protection will almost always...
Getting Married? You’ll Need a Caterer, a Photographer, a DJ … and a Lawyer!
The process of getting married can be one of the most wonderful, exciting … and stressful periods in a person’s life. There’s so much to plan for and do (and so many people to impress) that it can be hard to focus on what’s really important – the fact that you are...
Essential Tax & Legal Tips for the NEW Business Owner
Starting a business is a process. It is MUCH more than filing the one or two page articles/certificate of formation with the state. At the same time, it doesn’t have to be so complicated and overwhelming that you never start. Further, not only is starting a...
Til Death Do Us Part – Marriage and Asset Protection
The question of whether a spouse can be held liable for the debts of the other spouse is often asked from married (or to be married) couples, but the answer is not uniform and depends largely on the laws of the state where you reside. MOST STATES - COMMON LAW...
Pokémon No! How Pikachu Ended Up Getting Served with a Class Action Lawsuit
Remember Pokémon Go? About this time last year, the “augmented reality” game in which players use their smartphones to capture and train various species of Pokémon was a global phenomenon, with nearly seven million daily downloads. It was sort of the “thing to do” of...
Estate Planning 101: 5 Tips to Avoid Mistakes
As I work with small business owners and investors throughout the year, I want them to see the big picture when it comes to Estate Planning. Many misunderstand what the Estate Plan is all about and think it's simply an 'asset protection' strategy...that couldn't be...
Legal Tips for Wholesaling Real Estate
Many real estate investors regard wholesaling as a way to learn how to evaluate deals and develop your real estate network. It is also a method to profit from investing in real estate without requiring significant up front capital. Wholesaling is a strategy whereby...
Ask Your Attorney if a “Covfefe” Trademark Is Right for You
On May 31st, 2017, at 12:06 a.m. Eastern Time, President Donald Trump unleashed the following tweet: “Despite the constant negative press covfefe.” No one has been able to definitively crack the code (if there is one) as to what “covfefe” actually means. The President...
Bitcoin Basics: What is Cryptocurrency?
Questions about Bitcoin have increased dramatically as investors have seen the price of Bitcoin rise from 30 cents per Bitcoin in 2011 to $2,550 per Bitcoin in July 2017. This article answers basic questions about Bitcoin and we'll have two follow-up articles...
The Realities of Litigation
For most people involved in a dispute, declaring the words “See you in Court!!” can seem like the perfect threat or even feel therapeutic at the least. Some even presume that by stating “I’m going to sue you” is like declaring nuclear war against the other side and...
How to Donate to Charity and Beat the Tax Man
I have a close relative who works in fund-raising for a fairly large university. While he loves receiving large charitable donations in the form of immediately available cash or other marketable assets (such as real estate and publicly-traded stock), he knows that...
6 Tax and Legal Tips When Investing in Real Estate
Sir Francis Bacon put it best when he said, “knowledge is power”. Not only does he have a great last name but he gives good advice that applies to all facets of life including investing in real estate. Whether you are new to real estate investing, or a seasoned...
What You Should Know about Administering a Family Member's Estate
Most of us will, at some point in our lives, be called upon to administer the estate of a departed family member or loved one. While it may seem like an honor to have been entrusted with this responsibility, the reality is often it is a thankless, time consuming job,...
Entrepreneurs Raise Money More Easily with Rule 504
The new $5 million cap will make it easier to raise larger amounts of money from unaccredited persons and we expect to see an increase in persons using Rule 504 to raise money for operating businesses and real estate investments.
Owner’s Liability After Your LLC is Closed or Dissolved?
Many business owners wonder whether their LLC will protect them from claims and liabilities after their LLC is closed. Does the limited liability protection of the LLC still apply? Does it only apply for claims when the LLC was active? What about after the LLC is...
What Being Dragged Off a United can Flight Teach Us about Contract Law?
Unless you’ve been in a coma for the past week or so, you’ve probably seen the cell phone camera footage of airport police dragging a kicking and screaming Dr. David Dao off a United Airlines flight at Chicago’s O’Hare Airport last week. At this point, the story is...
What Do I Need to Know About Title Insurance
We all know that title insurance is a necessity when purchasing real estate, but many do not have a sufficient understanding of what title insurance is really for and steps we can take to deal with title insurance companies to prevent being embroiled in a title...
Business Succession: When Corporate Governance and Estate Planning Converge: Are You Setup Properly?
You may have heard in the news recently that there’s been some fighting among the ownership team of the Los Angeles Lakers. When Dr. Jerry Buss, the majority owner, died in 2012, his ownership passed to his six children via a trust, with each child receiving an equal...
Eight Spring Cleaning Ideas for Your Business
Don’t ask me why, but my seven year-old daughter is obsessed with the cheesy early 1990’s goodness that is Full House. Nick at Nite has scheduled a two-hour block of Danny Tanner, Uncle Jesse, Joey and the Tanner girls from 7-9 p.m. most weeknights, and my daughter...
Alternatives for Securing Your Loans or Investments
We often advise clients who want to loan money or participate in an investment to “get adequate security” for their investment. The purpose of getting additional security for your loan is so that you have something else that you can go after if the loan goes south....
Real Estate Investor Escapes Criminal Charges: Legal Factors When Raising Money from Others with Promissory Notes
Thousands of real estate deals/projects involve the use of promissory notes as a way to raise money to fund the project. If you are raising capital for a real estate project using promissory notes and you assume incorrectly that securities laws do not apply to your...
Just "Having" an S-Corp May Not be Enough
Just “having” an S-Corporation may not be enough. It's important you make sure to reap the tax and legal benefits of your S-Corp if you're going to set one up. If you routinely read articles in this space or have heard any of our attorneys speak around the country,...
Who's Liable- The Landlord or the Tenant?
We have many clients that own residential rental and commercial properties and lawsuits involving landlords continue to happen throughout the country, and will continue so long as someone is willing to 'rent a room' and someone is likely not to pay or damage...
Which State's Law Applies in a Lawsuit?
We frequently hear from clients who have been told by others that they should incorporate in Nevada (or other states outside of their home state) in order to take advantage of their favorable laws. We have seen many individuals persuaded into incorporating in a...
What Is a “Holding Company” and When Could It Make Sense to Have One?
We have lots of clients who come to us after dealing with promoters and would-be practitioners who have recommended elaborate (and usually expensive) entity structures for their businesses. This “up-sell” approach tends to happen whether the business sells...
Court Rules Against California Franchise Tax Board on Overreaching Franchise Tax
On January 12, 2017, an appeals court in California ruled, in a closely watched case of Swart Enterprises, Inc. v. Franchise Tax Board (Appeals Case F070922), that a non-resident of CA was not “doing business in California” and therefore not liable for California...
“Piercing the Veil" – Are you Appropriately Maintaining your LLC or Corporation?
Our law firm takes the position that an entity (such as an LLC or corporation, etc.), if properly maintained and used, can serve an important function in terms of liability protection, in addition to other forms of risk management such as insurance. This may be a...
5 New Year’s Resolutions to Make Your Business Great (or Great Again)
The dawn of a new year is traditionally a time for self-reflection on what we need to do to improve our lives. Many of us focus on goals to make ourselves better physically, mentally, spiritually, and yes – even financially. For those of you who own a small...
Estate Planning After a Spouse's Death
It's hard to consider the grief and sorrow that comes when a spouse passes. However, the year following the death of a spouse is an important one for the surviving spouse as there are number estate planning considerations and decisions to be made. This article is...