With the fallout of the real estate market the number of foreclosure sales is increasing dramatically. Many of those purchases are being made with the intent of renting the property rather than for owner occupancy.
LLCs are today’s number one choice for holding title to real estate. Owning either residential or commercial real estate can subject you to significant risk of a lawsuit. As we all know, accidents can happen any time. If someone gets seriously hurt on your property, you may find yourself being sued for damages.
One of the most common mistakes people make is assuming that since they have insurance that they are protected. Sometimes judgments can exceed the insurance coverage, or in some cases the insurance is denied. It’s important that you read your insurance policy thoroughly and understand the limitations.
The LLC is designed to protect your personal assets in the event of a lawsuit. You want to make sure that in the event of a lawsuit that the LLC is the defendant and not you personally.
Here are some things to keep in mind:
If you haven’t done so already, you may want to consider forming an LLC to hold title to your investment real estate. Remember to “not carry all of your eggs in one basket”.
You must sign a deed conveying the real estate to the LLC and record the deed in the county in which the property is located if you wish to transfer the property.
Make sure you are adequately covered with your insurance policy and that the LLC shows as the insured. Remember, the LLC is not you and you’re not it.
If you transfer the property into an LLC but you are making improvements on the property and an injury arises because of the work, you could be sued personally. You may want to hire a licensed contractor for things such as construction repairs, electrical work or plumbing, etc.
If you do hire someone to do significant repairs on your property, be sure to check them out thoroughly beforehand.
For information and assistance regarding forming an LLC, give us a call toll free at (888) 274-1130.
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
Thursday, September 13, 2012
Tuesday, September 11, 2012
The Importance of Corporate Record Keeping
Contributed by Deanna Kelly, Office Manager
Corporate Record Keeping is very important. It’s the difference between being a Corporation or not. At the least you would need Minutes for an Annual Meeting. Minutes are very simple: Who, What, When, Where, Why.
Who was at the meeting?
What kind of meeting (Special or Annual)?
When was the meeting?
Where was the meeting?
Why did you have a meeting (what was discussed)?
You write or type this out and place it in your corporate book behind the Minutes tab. Minutes should be in chronological order.
Day to day business does not require a meeting or minutes. Anything outside of day to day minutes (ie. purchase of property or vehicle by the corporation) requires a meeting, minutes and a resolution. All to be filed in your corporate book.
You should have a meeting each year to elect new officers & directors. The resulting minutes should be filed in the corporate book as discussed previously.
Even though LLC record keeping requirements are not as stringent as for Corporations, you should still maintain a Company Record Book. If you don't have a Record Book for your Corporation or LLC, we can provide one for you. Just give us a call toll free at (888) 274-1130.
FYI we have Annual Minutes forms on our web site that you may print out and complete. To find them go to our web site at http://www.americancorpenterprises.com and click the link for our Resource Center.
Read our previous post about Corporate Record Keeping and Asset Protection.
Also see IRS Audits and Record Keeping http://elitebookkeepingtaxservices.blogspot.com/2013/05/irs-audits-and-record-keeping.html
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
Corporate Record Keeping is very important. It’s the difference between being a Corporation or not. At the least you would need Minutes for an Annual Meeting. Minutes are very simple: Who, What, When, Where, Why.
Who was at the meeting?
What kind of meeting (Special or Annual)?
When was the meeting?
Where was the meeting?
Why did you have a meeting (what was discussed)?
You write or type this out and place it in your corporate book behind the Minutes tab. Minutes should be in chronological order.
Day to day business does not require a meeting or minutes. Anything outside of day to day minutes (ie. purchase of property or vehicle by the corporation) requires a meeting, minutes and a resolution. All to be filed in your corporate book.
You should have a meeting each year to elect new officers & directors. The resulting minutes should be filed in the corporate book as discussed previously.
Even though LLC record keeping requirements are not as stringent as for Corporations, you should still maintain a Company Record Book. If you don't have a Record Book for your Corporation or LLC, we can provide one for you. Just give us a call toll free at (888) 274-1130.
FYI we have Annual Minutes forms on our web site that you may print out and complete. To find them go to our web site at http://www.americancorpenterprises.com and click the link for our Resource Center.
Read our previous post about Corporate Record Keeping and Asset Protection.
Also see IRS Audits and Record Keeping http://elitebookkeepingtaxservices.blogspot.com/2013/05/irs-audits-and-record-keeping.html
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
Monday, September 10, 2012
Here's a helpful video from the IRS regarding disaster preparedness. You never know when a disaster will happen so it's important to take the necessary steps to safeguard your records.
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
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