One of the challenges I often encounter in my practice, particularly in cottage succession planning and family business situations, is that clients tend to focus on how things work in the present. They assume that present methods of management, problem-solving, payment of expenses, use of the family cottage and how ownership interest would be transferred will work the same way in the future. That is a risky assumption.
While they have their uses, there are problems with relying on legal self-help websites in place of expert advice, writes Peter I. Minton, founder and president of Minton Law Group. These sites aren't able to provide specific advice about your company and they won't be able to point out ongoing legal problems, he explains. And many people who try to save money by avoiding lawyers often face difficulties later.
Many business owners form several types of business entities to hold their assets and operate different aspects of their businesses. A common strategy is to form limited liability companies to hold real estate. The operating entity, such as a manufacturing entity, pays monthly rent to the real estate LLC and this can work to keep liability of the operating entity separate from the real estate LLC.
Who's in Charge?
As you may be aware, we recently decided to start a new firm, The Penning Group. We have two offices, one in Detroit (Farmington Hills) and another office in the Traverse City (Suttons Bay) area, serving clients across Michigan, the U.S. and abroad.
Going, Going, Gone!
Family Business Succession Planning – New Opportunities and Benefits Available for Family Businesses and Their OwnersWed, 03/02/2011 - 00:00 — blogeditor
Planning for the succession of ownership and operation of the family business for next generations presents many tax and non-tax challenges for the family business owner. Oftentimes, keeping the family business in the family involves having to choose between implementing strategies to accomplish tax benefits at the expense of implementing other strategies that may provide a greater likelihood the business will continue to prosper and be managed properly in the future.
Substantial yet limited opportunity
Proposed "Carried Interest" Tax Purports to Soak Wall Street But Hits Family Businesses
A large portion of the businesses in the United States are closely held companies, and many of the closely held companies are family owned enterprises. The long term perpetuation of the family business is a common and laudable goal of most founders.
Oil and Gas Leases: What Northern Michigan Landowners Should Know Recently, many of my firm's clients who own multiple acres of land in northern Michigan have been contacted by petroleum company representatives and offered oil and gas rights leases for their land.