The Robertson Law Group, LLC concentrates in small business, asset protection, and estate planning for business owners and professionals. Sean Robertson is an experienced entrepreneur and understands the challenges and opportunities available when you are a small business owner or self-employed.
Sean Robertson is passionate about counseling and assisting small business owners meet their legal and small business needs. Whether it is assisting you make important decisions or drafting a contract that protects you from liabilities. Sean Robertson may be reached at (630) 364-2318 or (312) 498-6080. We are based in Naperville, Illinois and we serve the Western Suburbs and Dupage County along with Kane County, Kendall County, and Cook County.
Friday, June 25, 2010
Thursday, June 24, 2010
LLC Operating Agreement and Non-Compete
Sean Robertson (630) 364-2318 or (312) 498-6080
Robertson Law Group, LLC
Today, a small business owner called me regarding reviewing an LLC Operating Agreement and a Non-Compete Agreement. An LLC Operating Agreement is essentially your Small Business Guide in how to operate your business. This LLC Operating Agreement explains how you elect new members and managers. It also explains how key decisions are made and what the process is for making key decisions. A LLC Operating Agreement is fundamental to your Small Business success.
A non-compete agreement is a written agreement where you either have an independent contractor or employee sign to prevent them from entering into business against you, or it is an agreement that an employee or independent contractor signs to prevent them from entering a business venture against them.
For example, Joe (made up name) is a small business owner that wants to hire a former employee of a Big Company to work for him. In this example, the small business owner wants to know the liability risks of hiring the former employee of a Big Company.
Answer: High liability because a Big Employer may sue the former employer to send a message for their fellow employees. In reality, non-compete agreements have a tough time standing up in a court of law. Courts generally not prefer non-compete agreements.
In conclusion, Robertson Law Group, LLC is a business, asset protection, and corporate law firm concentrating in assisting small to medium sized businesses and their owners. Sean Robertson is the Principal of Robertson Law Group, LLC, which is based in Naperville, Illinois. Naperville is near Plainfield, Lisle, and Downers Grove, Illinois in the Western Suburbs. Sean Robertson may be reached at (630) 364-2318 or (312) 498-6080.
Robertson Law Group, LLC
Today, a small business owner called me regarding reviewing an LLC Operating Agreement and a Non-Compete Agreement. An LLC Operating Agreement is essentially your Small Business Guide in how to operate your business. This LLC Operating Agreement explains how you elect new members and managers. It also explains how key decisions are made and what the process is for making key decisions. A LLC Operating Agreement is fundamental to your Small Business success.
A non-compete agreement is a written agreement where you either have an independent contractor or employee sign to prevent them from entering into business against you, or it is an agreement that an employee or independent contractor signs to prevent them from entering a business venture against them.
For example, Joe (made up name) is a small business owner that wants to hire a former employee of a Big Company to work for him. In this example, the small business owner wants to know the liability risks of hiring the former employee of a Big Company.
Answer: High liability because a Big Employer may sue the former employer to send a message for their fellow employees. In reality, non-compete agreements have a tough time standing up in a court of law. Courts generally not prefer non-compete agreements.
In conclusion, Robertson Law Group, LLC is a business, asset protection, and corporate law firm concentrating in assisting small to medium sized businesses and their owners. Sean Robertson is the Principal of Robertson Law Group, LLC, which is based in Naperville, Illinois. Naperville is near Plainfield, Lisle, and Downers Grove, Illinois in the Western Suburbs. Sean Robertson may be reached at (630) 364-2318 or (312) 498-6080.
Managed Managed LLCs vs. Member Managed LLCs-Naperville
Today's topic is the difference between a manager managed LLC and a member managed LLC. A manager managed LLC is run and operated by the managers, which are elected by the members. A member managed LLC is run and operated by the owners. This past week, I had an interesting situation. I have a client that was appointed as a manager of an LLC, which was previously owned by another person. Apparently, the LLC was sold because another contractor owed my client around $100,000. My client never hired an attorney to draft an asset sale agreement. An asset sale agreement is a written contract that distributes the assets of one business to another business. In contrasts, a stock purchase agreement purchases the stock of a business, which means that the new business owns the assets and liabilities of the old business. An asset sale agreement, means that you purchase only the assets of the old business and not the liabilities. In my client's situation, the old business owner only transferred the right to manage his LLC. My client thought that this meant that he owned the entire LLC. Thus, this is an example of why it is important to hire a qualified business attorney to assist you. In conclusion, a member managed LLC is managed by the owners or members and a managed managed LLC is owned and operated by the Managers, which are appointed by the Member(s).
Sean Robertson is a business and tax attorney that concentrates in LLC, business, and partnership law. Sean Robertson is the Principal of Robertson Law Group, LLC, which is headquarted in Naperville, Illinois, which is near Lisle, Illinois and Plainfield, Illinois along with Downers Grove, Illinois. Sean Robertson may be reached at (630) 364-2318 or (312) 498-6080.
Sean Robertson is a business and tax attorney that concentrates in LLC, business, and partnership law. Sean Robertson is the Principal of Robertson Law Group, LLC, which is headquarted in Naperville, Illinois, which is near Lisle, Illinois and Plainfield, Illinois along with Downers Grove, Illinois. Sean Robertson may be reached at (630) 364-2318 or (312) 498-6080.
Tuesday, June 22, 2010
Life as a Corporate and LLC Lawyer
I am sitting here thinking about how life is as a corporate, business, and LLC lawyer. It is fun and exciting representing business owners and entrepreneurs because you never know what tomorrow or today will entail. Representing business clients includes drafting LLCs, independent contractor agreement, employment agreements, and assisting to structure a business or company maximize growth potential and profitability.
often times, I come across business owners and entrepreneurs that fail to understand the importance of business entity structure planning and legal procedure and structure. As experienced entrepreneurs, entrepreneurs often underestimate the importance of structure planning for your LLC or Corporation. Most entrepreneurs have experienced judgments and lawsuits and learned from their mistakes. Inexperienced entrepreneurs often underestimate the significance of legal structure and liabilities. Furthermore, inexperienced entrepreneurs do not understand how lawsuits by your vendors and failure to structure your entities in the correct manner can cause you greater harm. Many times, these failures result in bankruptcy or lives that are majorly changed in a negative manner for several years.
Sean Robertson is an experienced entrepreneur and business attorney that counsels and advises business owners in their business entity structure planning, personal and business asset protection goals, and estate planning goals. Sean Robertson is based out of Naperville and downtown Chicago, Illinois. Sean Robertson may be reached at (312) 498-6080 or (630) 364-2318.
often times, I come across business owners and entrepreneurs that fail to understand the importance of business entity structure planning and legal procedure and structure. As experienced entrepreneurs, entrepreneurs often underestimate the importance of structure planning for your LLC or Corporation. Most entrepreneurs have experienced judgments and lawsuits and learned from their mistakes. Inexperienced entrepreneurs often underestimate the significance of legal structure and liabilities. Furthermore, inexperienced entrepreneurs do not understand how lawsuits by your vendors and failure to structure your entities in the correct manner can cause you greater harm. Many times, these failures result in bankruptcy or lives that are majorly changed in a negative manner for several years.
Sean Robertson is an experienced entrepreneur and business attorney that counsels and advises business owners in their business entity structure planning, personal and business asset protection goals, and estate planning goals. Sean Robertson is based out of Naperville and downtown Chicago, Illinois. Sean Robertson may be reached at (312) 498-6080 or (630) 364-2318.
Entity Structure for Real Estate and Investors
This afternoon, I was discussing real estate investing with a current client. He concentrates in the construction industry and wants to recruit investors to purchase foreclosure properties.
This gentleman is an experienced entrepreneur but inexperienced with working with investors. There are two (2) ways this can be achieved. The first way is through creation of an LLC where there are two types of membership interests. The first type of membership interests is voting interests and the second type of membership interests is through non-voting interests. The investor either with good credit or cash typically will own shares or membership interests through the non-voting membership interests. This gives the real estate investor a preferential position in getting paid back. Thus, the investor or cash investor gets membership interests as security in the LLC and gets paid back first in case of a dispute or problem. This is a good strategy for a construction or real estate investor because they can entice an investor that may be worried about their investment.
The second and preferred method of investment is through a loan through the LLC coupled with a security interest similar to a mortgage. Thus, the real estate investor takes a security interests against the property and may foreclose if their investment is at jeopardy. This also is good for real estate investors because the more secured a investor feels and is the more likely to secure their investment. With this second strategy, the property becomes the collateral.
Sean Robertson is an experienced corporate and business attorney that assists real estate owners and developers, small business owners, and physicians in their asset, corporate, and estate planning legal needs. Sean Robertson can be reached at 312-498-6080 or 630-364-2318.
This gentleman is an experienced entrepreneur but inexperienced with working with investors. There are two (2) ways this can be achieved. The first way is through creation of an LLC where there are two types of membership interests. The first type of membership interests is voting interests and the second type of membership interests is through non-voting interests. The investor either with good credit or cash typically will own shares or membership interests through the non-voting membership interests. This gives the real estate investor a preferential position in getting paid back. Thus, the investor or cash investor gets membership interests as security in the LLC and gets paid back first in case of a dispute or problem. This is a good strategy for a construction or real estate investor because they can entice an investor that may be worried about their investment.
The second and preferred method of investment is through a loan through the LLC coupled with a security interest similar to a mortgage. Thus, the real estate investor takes a security interests against the property and may foreclose if their investment is at jeopardy. This also is good for real estate investors because the more secured a investor feels and is the more likely to secure their investment. With this second strategy, the property becomes the collateral.
Sean Robertson is an experienced corporate and business attorney that assists real estate owners and developers, small business owners, and physicians in their asset, corporate, and estate planning legal needs. Sean Robertson can be reached at 312-498-6080 or 630-364-2318.
Motion to Vacate Default Judgment
A Motion to Vacate a Default Judgment under 2-1401 is a strategy to rid yourself of a previous judgment because you lacked notice of the trial date or you simply made a mistake and did not file an appearance or otherwise plead to a plaintiff's complaint or lawsuit.
In Illinois, Motion to Vacate Default Judgment commonly occur against business and corporate clients. Either vendors sue a business or company or other plaintiff's file a lawsuit against business and corporate clients. Today, I appearanced at the Circuit Court of Cook County to represent a Defendant Business that had a default judgment entered against them. My client simply did not appear in court at the time of the case and failed to file an answer or appearance. In this case, the Judge gave the Plaintiff a default judgment. My client and I filed a Motion to Vacate a Default Judgment within thirty (30) days. Motion to Vacate a Default Judgment is typically granted if one party files their Motion prior to the expiration of thirty (30) days. After thirty (30) days, your 2-1401 motion must be supported by affidavit, be within two (2) years, and challenge the the substance of the plaintiff's claim.
Sean Robertson practices in the areas of corporate and business law, asset protection, and estate planning and probate law. Sean Robertson can be reached at 312-498-6080 or 630-364-2318.
In Illinois, Motion to Vacate Default Judgment commonly occur against business and corporate clients. Either vendors sue a business or company or other plaintiff's file a lawsuit against business and corporate clients. Today, I appearanced at the Circuit Court of Cook County to represent a Defendant Business that had a default judgment entered against them. My client simply did not appear in court at the time of the case and failed to file an answer or appearance. In this case, the Judge gave the Plaintiff a default judgment. My client and I filed a Motion to Vacate a Default Judgment within thirty (30) days. Motion to Vacate a Default Judgment is typically granted if one party files their Motion prior to the expiration of thirty (30) days. After thirty (30) days, your 2-1401 motion must be supported by affidavit, be within two (2) years, and challenge the the substance of the plaintiff's claim.
Sean Robertson practices in the areas of corporate and business law, asset protection, and estate planning and probate law. Sean Robertson can be reached at 312-498-6080 or 630-364-2318.
Monday, June 21, 2010
Manager Managed LLCs
There are two (2) types of LLCs: Manager Managed LLCs and Member Managed LLCs. A member managed LLC is an LLC that is managed by the members or owners of the LLC. In contrasts, a manager managed LLC is similar to how a Corporation is managed. A manager managed LLC is managed by a Manager(s) and the Member(s) determine who will be the Manager(s).
In the State of Illinois, the Illinois Limited Liability Company Act defines LLCs. Sean Robertson is Principal and Attorney for Robertson Law Group, LLC. Sean Robertson is a corporate, asset protection, and tax attorney. Sean Robertson may be reached at 312-498-6080 or 630-364-2318.
Keywords: LLC Corporation, Business Attorney Naperville, Business Attorney Chicago, Business Attorney Lisle, LLC incorporation, Manager Managed LLC
In the State of Illinois, the Illinois Limited Liability Company Act defines LLCs. Sean Robertson is Principal and Attorney for Robertson Law Group, LLC. Sean Robertson is a corporate, asset protection, and tax attorney. Sean Robertson may be reached at 312-498-6080 or 630-364-2318.
Keywords: LLC Corporation, Business Attorney Naperville, Business Attorney Chicago, Business Attorney Lisle, LLC incorporation, Manager Managed LLC
Thursday, June 17, 2010
Consulting Agreement
Today, I drafted a consulting agreement for a client. The basic key terms for a consulting agreement are the following:
a. Scope of Engagement, which explains what the Consultant will do for the Client;
b. Payment terms, which describes how the Consultant will get paid;
c. Modification clause, which means that the document may not be modified without the written permission of both parties;
d. Reasonable and Good Faith Efforts, which means that the Consultant will work in good faith and do adequate work;
e. Breach of Contract. In case of a breach of contract, my client will get reasonable attorney's fees and costs.
The key to consulting agreements is simplicity and thoroughness. Sean Robertson is a corporate attorney with a niche in asset protection. Robertson Law Group, LLC serves as general counsel to small to medium sized businesses and provide entity structure planning and personal asset protection planning for closely held companies and their owners. Sean Robertson may be reached at 312-498-6080 or 630-364-2318.
a. Scope of Engagement, which explains what the Consultant will do for the Client;
b. Payment terms, which describes how the Consultant will get paid;
c. Modification clause, which means that the document may not be modified without the written permission of both parties;
d. Reasonable and Good Faith Efforts, which means that the Consultant will work in good faith and do adequate work;
e. Breach of Contract. In case of a breach of contract, my client will get reasonable attorney's fees and costs.
The key to consulting agreements is simplicity and thoroughness. Sean Robertson is a corporate attorney with a niche in asset protection. Robertson Law Group, LLC serves as general counsel to small to medium sized businesses and provide entity structure planning and personal asset protection planning for closely held companies and their owners. Sean Robertson may be reached at 312-498-6080 or 630-364-2318.
Sunday, June 13, 2010
Defending a Civil Lawsuit
In today's economy, many small business owners are either filing lawsuits against vendors or having their vendors file lawsuits against them. This blog is intended to be a basic article about how to defend your business against a lawsuit.
Filing of a Complaint within Circuit Court of Cook County
A plaintiff vendor must file a complaint, which is a detailed explanation of what law was broken. For example, most vendors claim that the Defendant Business owner breached a contract for non-payment of a bill or service. A Defendant is given thirty (30) days to respond to the complaint and file an "answer" or otherwise plead. An answer is your response to a complaint. An answer is a paragraph by paragraph response to whether the Defendant business owner admits or denies the allegations alleged by the plaintiff vendor. Often times, a defendant Business owner does not have a legitimate defense to a complaint. The objective is either to settle and make affordable payment arrangements without a judgment on their record or to buy the Defendant business owner more time to offer a settlement, which is typically 1/3 to 50 percent of the total value of the claim. Often times, when a creditor has forced you to court, the asking price to settle the matter also increases. A one-time or two time payment(s) is the best way to settle a vendor bill and move on with your life.
In today's economy, debt buyers are purchasing old debts and filing lawsuits against Defendant business owners. In this case, the debt buyers have no way to prove their cases. Thus, the answer denies the claim and resolves the matter with the Plaintiff paying the Defendant for their court costs. For example, Portfolio Recovery filed a lawsuit against one of my clients for $800. Portfolio Recovery is a debt buyer, which means they have no way of proving or validating their debts. In our answer, we disputed the debt and requested that Portfolio Recovery validate the debt, which they could not do. Validating the debt is important and required under the Fair Debt Collection Act. Thus, since Portfolio Recovery could not validate the debt, they dismissed their case without prejudice. I insisted that my client be refunded their court costs by Portfolio Recovery. Thus, the plaintiff ended up paying the Defendant their court costs.
In conclusion, defending a lawsuit is a negotiation and it is important to hire an experienced corporate attorney. Often times, we can either negotiate the bill or successfully defend a lawsuit. Sean Robertson is a corporate, asset protection, and estate planning attorney. Sean Robertson can be reached at 312-498-6080 or 630-364-2318.
Filing of a Complaint within Circuit Court of Cook County
A plaintiff vendor must file a complaint, which is a detailed explanation of what law was broken. For example, most vendors claim that the Defendant Business owner breached a contract for non-payment of a bill or service. A Defendant is given thirty (30) days to respond to the complaint and file an "answer" or otherwise plead. An answer is your response to a complaint. An answer is a paragraph by paragraph response to whether the Defendant business owner admits or denies the allegations alleged by the plaintiff vendor. Often times, a defendant Business owner does not have a legitimate defense to a complaint. The objective is either to settle and make affordable payment arrangements without a judgment on their record or to buy the Defendant business owner more time to offer a settlement, which is typically 1/3 to 50 percent of the total value of the claim. Often times, when a creditor has forced you to court, the asking price to settle the matter also increases. A one-time or two time payment(s) is the best way to settle a vendor bill and move on with your life.
In today's economy, debt buyers are purchasing old debts and filing lawsuits against Defendant business owners. In this case, the debt buyers have no way to prove their cases. Thus, the answer denies the claim and resolves the matter with the Plaintiff paying the Defendant for their court costs. For example, Portfolio Recovery filed a lawsuit against one of my clients for $800. Portfolio Recovery is a debt buyer, which means they have no way of proving or validating their debts. In our answer, we disputed the debt and requested that Portfolio Recovery validate the debt, which they could not do. Validating the debt is important and required under the Fair Debt Collection Act. Thus, since Portfolio Recovery could not validate the debt, they dismissed their case without prejudice. I insisted that my client be refunded their court costs by Portfolio Recovery. Thus, the plaintiff ended up paying the Defendant their court costs.
In conclusion, defending a lawsuit is a negotiation and it is important to hire an experienced corporate attorney. Often times, we can either negotiate the bill or successfully defend a lawsuit. Sean Robertson is a corporate, asset protection, and estate planning attorney. Sean Robertson can be reached at 312-498-6080 or 630-364-2318.
Friday, June 4, 2010
Why Real Estate Should Never Be in Your Personal Name?
This morning, I received a phone call from a real estate investor/developer. Unfortunately, this person is filing bankruptcy and he wanted a referral to a reputable bankruptcy attorney. My law firm does not do bankruptcy.
His problem was he had several mortgages and structured all of his real estate in his personal name and him and his wife's name. This is a common problem that has occured because I have been counseling these families the last couple of years.
For example, if you own your own commercial building, do not have it in your name or your wife's name. It also should not be titled in your business name. This is a big no-no. If your business experiences economic troubles, your real estate is considered a business asset if the title is in your business name. Thus, your commercial real estate property make prevent you from filing bankruptcy because you are afraid of losing your property.
Assume you have a business named ABC Carpenting, LLC and you own your real estate property in you and your wife's personal name. At a minimum, you should consider placing the property in a Private Land Trust. A private land trust is a strategy where liens and judgments do not attach to the property. Thus, if you have a foreclosure on a different property, you can still own the property referenced above and you will not lose it. A private land trust also provides you privacy and simple estate planning. You can designate your beneficiary or beneficiaries with a private land trust. Generally, the beneficiary of your private land trust is a LLC. However, it is a different type of LLC called a Family LLC/Partnership. Thus, there will be voting and non-voting membership interests. This is similar to purchasing shares of stock in IBM. Your owners and entrepreneurs often take 1% of the ownership of voting shares in their personal name or a S corporation's name. The other 99% ownership of the LLC is in non-voting shares. Typically, I like the non-voting shares to be titled in an irrevocable trust or business entity such as a LLC or S corporation. The goal is to make your real estate property judgment proof and protectable against your creditors. This is a very short explanation of what occurs and how to properly structure your real estate.
By no means does this substitute for experienced legal advice. Sean Robertson can assist you by calling either (312) 498-6080 or (630) 364-2318. Sean Robertson concentrates in business and corporate law, asset protection, and commercial litigation.
His problem was he had several mortgages and structured all of his real estate in his personal name and him and his wife's name. This is a common problem that has occured because I have been counseling these families the last couple of years.
For example, if you own your own commercial building, do not have it in your name or your wife's name. It also should not be titled in your business name. This is a big no-no. If your business experiences economic troubles, your real estate is considered a business asset if the title is in your business name. Thus, your commercial real estate property make prevent you from filing bankruptcy because you are afraid of losing your property.
Assume you have a business named ABC Carpenting, LLC and you own your real estate property in you and your wife's personal name. At a minimum, you should consider placing the property in a Private Land Trust. A private land trust is a strategy where liens and judgments do not attach to the property. Thus, if you have a foreclosure on a different property, you can still own the property referenced above and you will not lose it. A private land trust also provides you privacy and simple estate planning. You can designate your beneficiary or beneficiaries with a private land trust. Generally, the beneficiary of your private land trust is a LLC. However, it is a different type of LLC called a Family LLC/Partnership. Thus, there will be voting and non-voting membership interests. This is similar to purchasing shares of stock in IBM. Your owners and entrepreneurs often take 1% of the ownership of voting shares in their personal name or a S corporation's name. The other 99% ownership of the LLC is in non-voting shares. Typically, I like the non-voting shares to be titled in an irrevocable trust or business entity such as a LLC or S corporation. The goal is to make your real estate property judgment proof and protectable against your creditors. This is a very short explanation of what occurs and how to properly structure your real estate.
By no means does this substitute for experienced legal advice. Sean Robertson can assist you by calling either (312) 498-6080 or (630) 364-2318. Sean Robertson concentrates in business and corporate law, asset protection, and commercial litigation.
Thursday, June 3, 2010
Rod Blagojevich and Entrepreneurship
Today is the beginning of the Blago trial. As an attorney and a person that often gets people that say that "you look like Sam Adam, Jr. or are you Sam Adam, Sr or do you know who Sam Adam is?", this is an interesting legal case involving serious public trust issues. Sam Adam, Jr. is one of the defense attorneys for Blago.
I was explaining to my wife that I would love to witness one day of the trial involving the former Governor of Illinois. I love being self-employed in part because we work very hard but we have the flexibility to pursue hobbies and interests. My wife, Brenda, and I may go sit in at the Blago trial next week or the following week. My main point is entrepreneurship enables you and your family to work your passion, to help people, and provide you many rewarding experiences.
Over the years, I have witnessed different levels of entrepreneurs. First, many business owners are financially smart but fail to understand corporate formalities and the legal consequences of contracts. For example, I have two (2) clients lately that have signed contracts and been sued for breach of contract because they thought that they could simply stop paying their vendor when they felt that the vendor was not meeting the requirement under the contract.
Hence, it is important for business owners and entrepreneurs to understand that you simply cannot decide to ignore a contract. In many instances, entrepreneurs are correct in wanting a certain result, but they fail to read their obligations under the contract prior to breaching or stopping to perform the contract. With my two (2) clients, attorney's fees and costs would get awarded upon trial. Therefore, any legal settlement must be considered with this in mind. My basic advice is do not ignore the corporate and legal formalities required as a business owner. This failure may result in thousands of dollars in debt that must get repaid or it may be the difference in your business succeeding or failing.
In conclusion, entrepreneurship is awesome but it comes with responsibility. If you are not responsible and fail to properly plan and follow corporate and legal formalities, you will be working for somebody again. I love working for fellow entrepreneurs and given them business and legal advice.
At the Robertson law Group, LLC, we counsel business clients on how to resolve disputes with vendors and customers. Secondly, we counsel you and your partners on how to write good partnership agreements and how to utilize LLCs and S corporations to the best of your ability.
Sean Robertson is an Partner and Founder of Robertson Law Group, LLC. Sean can be reached at either (312) 498-6080 or (630) 364-2318. We have offices in Naperville and Chicago, Illinois. Our website is www.RobertsonLawGroup.com.
I was explaining to my wife that I would love to witness one day of the trial involving the former Governor of Illinois. I love being self-employed in part because we work very hard but we have the flexibility to pursue hobbies and interests. My wife, Brenda, and I may go sit in at the Blago trial next week or the following week. My main point is entrepreneurship enables you and your family to work your passion, to help people, and provide you many rewarding experiences.
Over the years, I have witnessed different levels of entrepreneurs. First, many business owners are financially smart but fail to understand corporate formalities and the legal consequences of contracts. For example, I have two (2) clients lately that have signed contracts and been sued for breach of contract because they thought that they could simply stop paying their vendor when they felt that the vendor was not meeting the requirement under the contract.
Hence, it is important for business owners and entrepreneurs to understand that you simply cannot decide to ignore a contract. In many instances, entrepreneurs are correct in wanting a certain result, but they fail to read their obligations under the contract prior to breaching or stopping to perform the contract. With my two (2) clients, attorney's fees and costs would get awarded upon trial. Therefore, any legal settlement must be considered with this in mind. My basic advice is do not ignore the corporate and legal formalities required as a business owner. This failure may result in thousands of dollars in debt that must get repaid or it may be the difference in your business succeeding or failing.
In conclusion, entrepreneurship is awesome but it comes with responsibility. If you are not responsible and fail to properly plan and follow corporate and legal formalities, you will be working for somebody again. I love working for fellow entrepreneurs and given them business and legal advice.
At the Robertson law Group, LLC, we counsel business clients on how to resolve disputes with vendors and customers. Secondly, we counsel you and your partners on how to write good partnership agreements and how to utilize LLCs and S corporations to the best of your ability.
Sean Robertson is an Partner and Founder of Robertson Law Group, LLC. Sean can be reached at either (312) 498-6080 or (630) 364-2318. We have offices in Naperville and Chicago, Illinois. Our website is www.RobertsonLawGroup.com.
Tuesday, June 1, 2010
Asset Protection for Real Estate Investors
Yesterday, I received an email from a real estate developer that desires asset protection legal services. Unfortunately, in this legal market, many business owners and real estate investors have learned asset protection the hard way--experience. Many real estate investors and owners were ill-prepared for the litigation risks facing their industry. Many families of real estate owners and developers have experienced severe hardship in answering lawsuit.
LLCs are the Favored Choice of Real Estate Investors
Limited Liability Corporations (LLC) are the favored business entity for real estate owners and developers. An LLC has the flexibility of a partnership, but the limited liability protection of a corporation. Unlike a corporation, an LLC may have different types of stock or membership interests. In litigation, an S corporation may be foreclosed, which means that the real estate investor or owner has little bargaining power. This is important because many real estate investors and owners own significant real estate holdings that are unable or unwise to be sold right now. Thus, a foreclosure proceeding will result in a loss of equity and real estate holdings. In contrasts, a properly structured LLC may have different levels of investors such as husband, wife, and a family friend. This structure can prevent a foreclosure proceeding and likely assist you in maintaining ownership of your real estate holdings.
Another popular entity for real estate investors and owners are irrevocable trust. An irrevocable trust is a type of trust that is unamendable. This means that once you set it up, it cannot be changed. The purpose of establishing an irrevocable trust is asset protection and estate planning. In many instances, your wife may be the trustee and your real estate property is untouchable because you will not be the owner of the real estate property. Thus, you have properly tranferred the property into somebody's else's name without the downside.
Sean Robertson is an estate, corporate, and asset protection attorney. Sean Robertson may be reached at 312-498-6080 or 630-364-2318. We have offices in Chicago and Naperville, Illinois.
LLCs are the Favored Choice of Real Estate Investors
Limited Liability Corporations (LLC) are the favored business entity for real estate owners and developers. An LLC has the flexibility of a partnership, but the limited liability protection of a corporation. Unlike a corporation, an LLC may have different types of stock or membership interests. In litigation, an S corporation may be foreclosed, which means that the real estate investor or owner has little bargaining power. This is important because many real estate investors and owners own significant real estate holdings that are unable or unwise to be sold right now. Thus, a foreclosure proceeding will result in a loss of equity and real estate holdings. In contrasts, a properly structured LLC may have different levels of investors such as husband, wife, and a family friend. This structure can prevent a foreclosure proceeding and likely assist you in maintaining ownership of your real estate holdings.
Another popular entity for real estate investors and owners are irrevocable trust. An irrevocable trust is a type of trust that is unamendable. This means that once you set it up, it cannot be changed. The purpose of establishing an irrevocable trust is asset protection and estate planning. In many instances, your wife may be the trustee and your real estate property is untouchable because you will not be the owner of the real estate property. Thus, you have properly tranferred the property into somebody's else's name without the downside.
Sean Robertson is an estate, corporate, and asset protection attorney. Sean Robertson may be reached at 312-498-6080 or 630-364-2318. We have offices in Chicago and Naperville, Illinois.
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