A Word of Advice from Bernard Jasper As I was calendaring an event and writing 2015, I was reminded of my youthful thoughts in the 1960s; when I was sure I would not live past 2009 after calculating my age at the turn of the century. The thought is not one of nostalgia but of the benefits of planning beyond mortality. In business and ventures, we create new entities, entities which the Supreme Court of the United States tells us are separate and valuable lives like our fellow employees. As businesspersons, we need to plan for the live of the entity as well as its demise. The State of California drives home that point by charging each entity an $800 annual fee to live that year. If the fee goes unpaid, the entity dies a slow and costly death, racking up thousands of dollars of debt. And that debt may impact your credit should the entity be named after you or should you be listed with the California Secretary of State as a Board Member, Officer, or just plain Member. So plan your entitys demise. If your entity has no debt and no future use, you can fill out a State form to dissolve the entity. Should the entity have no further use and no revenue, but you harbor concerns about future liabilities or claims from the past, a Chapter 7 bankruptcy may be the appropriate route to termination - and final death. When operating an entity, a reserve fund should be generated to fund these efforts directed at termination. You are better served by acting than delaying; once a claim is issued or a lawsuit filed, the destruction of the entity becomes more complicated and causes ramifications - some of which you could not foresee. People discuss putting their affairs in order so as to not trouble their children and/or heirs. I suggest the entities you create could cause similar issues and therefore deserve similar considerations. Adli Law Group is here to provide you guidance and counsel in these areas. adlilaw/attorneys-agents/bernard-c-jasper/
Posted on: Sat, 06 Dec 2014 00:56:46 +0000
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