Corona Business Law Blog

Succession Planning: Structuring a Successful Plan With Tax and Non-Tax Considerations

On behalf of Lobb & Plewe posted in business law on Thursday, May 23, 2019.

No business should operate without a succession plan in place. The succession plan should have its imprint on the day-to-day operations of the business. Once you have a succession plan in place, the implementation of that plan will integrate itself into the fabric of decision making. Importantly as well, the timing of your succession will become real and tied to something other than a loose idea of someday transitioning out of your company.

If you work with Lobb & Plewe in putting your succession plan together, the initial step will include a detailed conversation regarding the possible avenues of succession. As an owner you may have already decided that family, a strategic buyer, a private equity firm or the employees, will end up owing the company. If preliminary determinations have not been made, all of the options will need to be reviewed. Once basic details have been discussed, L&P will start the draft of a Business Succession Plan (BSP) which is discussed in more detail below in this article.

Corporate Minutes Can Save Your House (and Cash)

On behalf of Lobb & Plewe posted in asset protection on Tuesday, April 23, 2019.

Many business owners underestimate their legal exposure when it comes to running their businesses. Lawsuits can land anytime and from anywhere: from a disgruntled employee, client, landlord, consumer, lender, the government, or from an almost infinite array of characters. These lawsuits may evolve into a judgment, and if your business cannot pay the judgment, then your personal assets, such as your house and personal bank accounts, may end up in the cross-hairs of your new judgment creditor.

To avoid this risk, many business owners choose to do business under a formal corporate structure such as the corporation or the limited liability company. It is a well known fact that these structures limit the liability of business owners to the amount they initially invested in their company.

Four tips for business owners facing potential litigation

By Kevin Abbott of Lobb & Plewe posted in business law on Monday, March 18, 2019.

When your business interests are threatened by the prospect of litigation, you need to know what to do in order to protect your investment. We have seen many companies who failed to realize the impact that litigation has upon a business's day-to-day operations, resulting in significant harm that is difficult to overcome.

We wanted to take a few moments to discuss some of the necessary things that you should do in the event that you or your company encounters the threat of a potential lawsuit. Taking these steps now can pay huge dividends later.

Forming and operating your business

On behalf of Lobb & Plewe posted in business law on Wednesday, February 27, 2019.

When starting a new business, you will want to decide whether to operate your business as a sole proprietorship or as a separate person by forming an entity. In rare instances, operating as a sole proprietorship is sufficient. However, in the vast majority of instances, you will want to form an entity to operate your business because, amongst other things, operating as an entity provides you, as the owner, protection from personal liability for the entity's debts and obligations, provided you observe corporate formalities in maintaining the entity's separate legal identity.

Trustees Responsibility when Trustee has Sole and Absolute Discretion

By Aaron M. Hegji of Lobb & Plewe posted in estate planning on Thursday, February 7, 2019.

A trustee is bound by the terms of the trust agreement. The performance of his or her duties, including and especially making distributions to beneficiaries, must strictly comply with the trust terms. However, more and more trusts, especially those utilizing advanced estate, tax, and asset protection planning techniques, provide an independent trustee with sole and absolute discretion to make distributions of principal and/or income to the trusts beneficiaries. So how does a trustee exercise this discretion? Is the trustee free to do anything or are there restrictions?

Even when a trustee holds sole and absolute discretion over trust distributions, the trustee must still exercise that discretion in a reasonable fashion. Specifically, the Trustee must balance the competing purposes of the trust. Specifically the Trustee must weigh his or her responsibility to have assets to distribute against the beneficiaries needs and wants. Satisfying immediate and excessive wants will deplete the trust and render the beneficiary helpless in a moment of greater need. So how does a trustee draw that line?

Portman-Cardin bill includes IRA Preservation Act

On behalf of Lobb & Plewe posted in estate planning on Monday, January 14, 2019.

Attorney Aaron Hegji of Lobb & Plewe, LLP, and a director of the Coalition For American Retirement (CFAR) is pleased to announce that legislation prepared by the CFAR is included in the Portman Cardin retirement savings bill (the Retirement Security and Savings Act) introduced by senators Rob Portman, R-Ohio, and Ben Cardin, D-Md.

The senators are known as the "gold standard" when it comes to retirement plan legislation. It is no small accomplishment and a major honor to be included in their sweeping and significant legislation.