The Administrative Assistant is a person, whose activities range from filling papers, answering phones to heavy duties like presenting financial analysis. He is responsible for giving support to the entire department and also the manager of that department. He is a full time worker in the organization and works under the supervision of executive directors of the company. This position is a high paid job and the salary paid depends on various factors like experience, performance, etc. Administrative Assistant is considered as the back bone for an organization. If management is brain of the company then Administrative Assistant is the body and limbs. Thus many activities in an organization are handled effectively in an organization.

How to become an Administrative Assistant?

You must be proficient in basic computer knowledge like office software skills. It is necessary to possess excellent verbal communication skills. It is required to have A.A degree from a college or must go to any business school after completing high school. Initially you will be given a low paid clerical position but later with experience you will achieve the desired Administrative Assistant position. Make yourself clear with the career path and make a decision to continue long term in this field. According to your interest take the subjects like law or medicine. You will have a chance to impress the potential employers provided if you are certified. Get ready for the interview by preparing an Administrative Assistant Resume by specifying all your career achievements in it.

Administrative Assistant Job description

Administrative Assistant Job description: He is responsible for managing daily schedules in an organization. The tasks performed by Administrative Assistant are very crucial which involves securing the equipment, making arrangements for video conferences, company meetings are coordinated. He is also responsible for preparing and maintaining records which includes client proposals. Financial reports are also generated by Administrative Assistant. All the internal communications in the company are handled by Administrative Assistant and thus he must be a computer expert.

How much does an Administrative Assistant make?

Administrative Assistant Salary: The median annual salary paid to an Administrative Assistant who is working in U.S will earn about $35,000. The highest salary paid to Administrative Assistant is about $53,500 annually. In addition to salaries they will have many other benefits like health insurance, holidays, etc.

Streamline Your Life for Inspiration, Motivation and Fulfillment.

We all have things in our lives that we love to do, people we love to be with, responsibilities we feel good about, beliefs and habits that nurture and support us. And we also have those things that we put off doing – perhaps even dread – people we would rather not spend time with, responsibilities that feel like burdens, and beliefs and habits that we say we want to change yet somehow continue to perpetuate.
 
Another way of saying this is that we all have personal energy assets – things that energize, inspire, and motivate us – and personal energy liabilities – things that sap us of energy even by just thinking about them. Sometimes we are aware of the effects of these assets and liabilities, yet sometimes we are not. We just accept all of these things – especially the liabilities – as “part of life” and “do what we have to do”, often not realizing or acknowledging the personal cost.
 
Not acknowledging the personal cost has a cumulative effect over time.

Life becomes increasingly stressful, concentration and focus suffer, there is a loss of sense of purpose, and life has less and less meaning. In extreme cases, we can find ourselves just “going through the motions” – we can become numb to life. Some simple shifts in awareness and realignment of thoughts, perspective, and actions can turn this around. By paying attention to your energetic responses to life, you can streamline your life and energy, leading to greater focus and accomplishment both in your personal life and in sharing your gifts with others.
 
Take a few minutes to do a simple exercise. On a blank sheet of paper, draw a line down the middle of the page from top to bottom. At the top of the left side, write “Energy Assets” and on the right side, write “Energy Liabilities”. Then make a list on the Assets side of all the things in your life that energize, inspire, motivate, or nurture you in some way. Leave a little space to write more later after each thing on your list. Then make a list under Liabilities of all the things that sap you of energy. On either list, these things might include responsibilities, tasks, roles you play, beliefs, habits, relationships, or attitudes. You may even find that some things show up on both lists! This is not at all unusual. Make your lists before reading on.
 
Having completed the first step of this exercise, now go back to your list of assets. With each thing on your list, consider what is really going on for you below the surface asset. Who are you getting to be? What qualities are being called forth from you? What gifts or talents are you getting to use? What feelings arise? What is it about that activity, belief or relationship that feeds you energy, motivates or inspires you? In the space between each thing on your list, write your responses to these questions.
 
When you have finished writing about your assets and what they call forth from you, go to the liabilities side of the page. Consider what is missing in each of these things that, if it were present, would make a difference. Who are you not getting to be? What important qualities of your authentic self do you not seem to be able to live here? What important feelings are missing here? Again, write your responses.
 
Now go back to look at what you have written in the assets column. While you may have written about many different qualities, talents and feelings with the various things on your list, chances are some themes are showing up. You may find that with many of the things on your asset list, you are getting to be your authentic self, that your best qualities are being called forth, that you are getting to use your gifts and talents, or that you feel that you make a difference or are able to serve others in some way that is fulfilling to you. Conversely, when you look at the list of liabilities, you may find that the very themes that emerged on the assets list are missing among the liabilities. These activities, beliefs, and relationships are probably sapping your energy because they are missing the very things that inspire, motivate, and energize you.
 
Whether this is new information or an acknowledgement of what you already know, how can this information serve you? How can it help you streamline your life towards more effective use of your energy, greater accomplishment and personal fulfillment, as well as greater service to others? For some of the things on your liabilities list, you may realize right away that calling forth some of the qualities or attitudes from your assets list-simply shifting how you “show up” to those activities, beliefs, or relationships-could turn them from a liability to an asset. Others may be more challenging, so for those, let’s continue.
 
First, let’s look at the themes showing up with your personal energy assets. These themes are a good indication of why you are here, the gifts you were born to share, the mission your soul is here to live. The more you can make giving those gifts and living that mission the fuel and motivation behind all of your activities, the better chance you have of being energized and inspired all the time. Then you are “living into” who you are called to be, what you are called to do. This process also helps you realize that it is not the activity, relationship, or belief itself that feeds you energy, but rather who you get to be through that activity, relationship, or belief that is important. This distinction is essential if all the parts of your life are to be personal energy assets.
 
Now let’s look at the things on your liabilities list. For most people, this list can be divided into several categories, such as things that it is actually time to let go of, relationships that no longer serve in their current form, responsibilities that may not be theirs but that they have assumed anyway, as well as some things that simply must stay on the list-things that are just part of “what is” in their life at the moment and, at least for now, they cannot or choose not to change. This last category might include being a caretaker for a loved one, financial responsibilities, or other circumstances that, at least for now, must continue to be a part of the fabric of their lives.
 
Take a few moments to organize the things on your liabilities list into these categories:

· things it is time to let go of
· relationships that no longer serve in their current form
· responsibilities I have assumed but, in fact, are not really mine to do
· situations or circumstances that I cannot change in the immediate future

With the things it is time to let go of, what is one step you can take in each of them to begin letting them go in the next few days? How can you shift your relationship to those circumstances, activities, or beliefs so that they no longer sap you of energy? Notice I did not ask how you can change the situation itself. The situation may or may not change, but who do you choose to be in relationship to it? What possible choices can you make that could stop the energy drain? Then choose at least one of them.
 
With relationships that no longer serve, what wants to happen in those relationships? What is the conversation that needs to take place? What would be different if that conversation happened? What if in this relationship you chose to be the same person who is thriving in the assets column? How might the relationship shift, if not yet to one that energizes and nurtures you, at least to one that no longer saps you of energy. One step at a time!
 
It is amazing how many things we take responsibility for in our lives that, in fact, are not really ours to take care of. In fact, sometimes by taking on those responsibilities, we deny others the responsibility and power in their own lives and circumstances because we stepped in to take care of it for them. In the bigger picture, we are not always helping them. Too often, we can get caught in the belief that if we can do something, we should. The more enlightened approach is to ask, “What is truly mine to do here?” Just because you can do something doesn’t mean that it is, in fact, yours to do. Where can you turn energy drains into energy feeds by no longer taking responsibility that is not actually yours?
 
Just by addressing these first three categories, we can begin to realign our lives and find more energy and inspiration for what is truly ours to do-to live the lives we are truly called to live, serve in the places we feel called to serve, and experience much greater inspiration, motivation, fulfillment, and sense of purpose at the end of the day. And chances are, we have stepped into greater authenticity and integrity in all of those areas as well.
 
This brings us to the fourth category-things that you cannot change in the immediate future. The themes that showed up in your assets column-who you got to be, the qualities called forth within you, the gifts you shared-are also keys to shifting your relationship to this circumstance. How could you choose to show up differently to that circumstance?
 
What could you bring or who could you choose to be in the moment that might shift the circumstance to one that motivates you, inspires you, or energizes you? Having done the first part of this exercise, you now have more clarity about what energizes and inspires you. You know that when you embody certain qualities and choose particular perspectives, you find greater motivation and sense of purpose. How can you apply that here? While the circumstance may be here to stay for awhile, you may very well be able to make a significant shift in your relationship to it.
 
There is one more personal energy liability that often goes unrecognized. We often refer to this as “the elephant in the room”- the huge problem in a family, relationship, or organization that no one dares to openly acknowledge. Everyone knows that the problem is there, yet no one wants to be the one to break the unspoken code of silence. Avoiding conflict and tension at all costs, everyone outwardly pretends that the problem doesn’t exist. There is a false sense that “not going there” is preferable to speaking truth. We’ve all been a party to this kind of behavior at one time or another. Everyone goes into co-dependent protection mode, yet each person involved is more than likely protecting something different-someone they care about, a perceived weakness in themselves, or a reputation. While a fragile sense of outward normalcy is closely guarded, everyone involved suffers inwardly for the lie that is being lived or the charade being played. And in the meantime, the situation continues to fester and get worse.
 
“Elephants in the room” are enormous black holes for energy. They sap every bit of life force out of a relationship, a family, or an organization and lead to long-term debilitation. Scary as it might be to break the silence, just naming the issue out loud will begin to lessen the energy drain. While initially tension and conflict might escalate, the energy usually shifts fairly quickly toward something constructive starting to happen. And once things are out in the open and the problem can start to be addressed, if everyone is willing to participate in the healing or resolution, energy liabilities can often actually be turned into assets.
 
We each have significant gifts to bring to our world. We each have lessons to learn and soul missions to live. Staying focused on living our soul missions, sharing our gifts, and learning the lessons that come along keeps life much simpler and keeps us in the assets column. Pay attention to your personal energy assets and liabilities, take the time necessary to address the liabilities as they arise and do everything you can to shift them to the assets column, or at least neutralize them. I promise that the payoff will be worth the time and effort.

It’s Time To Get Smarter With Your Money. “…It’s become even clearer to me that what Robert talks about and teaches is more important than ever. Financial education is crucial to this country at this point, and Robert’s acumen in this area cannot be disputed.” – Donald J. Trump Robert Kiyosaki interview at: eaglesvisions.blogspot.com
Video Rating: 5 / 5

Related Assets And Liabilities Articles

One of the most critical components of living a comfortable life is getting more value for less of your money. Being able to do this requires work and vigilance in looking for opportunities to make that happen. Not making the effort to find these opportunities is the primary reason that most people end up with much less than expected for their money. One way to ensure that you are getting more for less is to buy assets rather than liabilities. I don’t mean assets and liabilities in the strict business sense of accounts receivable versus accounts payable. In your personal life assets are things that continue to give back to you in some manner while liabilities are things that have an initial cost but are gone quickly.

How to identify an asset and a liability

An easy way to identify if something is an asset or liability is to ask if it is fun or not.

Assets are typically not “fun”. Liabilities are things that are strictly a cost and generate some kind of short term fun or fix. Assets continue to work for you by generating savings or providing some tangible benefit long after it has been paid for. Premium cable channels are liabilities. Yes, they are fun but they do not provide any money savings or additional value to your financial state. Ceiling fans are assets. They allow you to maximize the efficiency of your heating and cooling systems thus saving money year after year on electricity. That extra money can be used to buy something else.

When I work with my students in creating a financial program one of the underlying goals is to ensure they are following a program that allows them to buy more assets that generate savings which then puts them in a better position to afford those fun liabilities without violating their budget.

I recently broke my own rule of buying assets versus liabilities and paid for it.

Two of my staff members at work had done a particularly good job on their project. I wanted to give them some kind of reward. I told them I would like to take them to lunch in order to thank them for a job well done. We chose a restaurant that had just reopened under a new name near our workplace. I told them I was proud of the work they had done and we enjoyed our lunchtime together. We ordered three lunches that sounded appealing and talked about how the restaurant had been remodeled.

.00 I will never see again

Then the bill came. We had not eaten that much and there were no expensive drinks involved. The bill for three people was nearly .00. I was surprised by how much three light lunches cost us. Don’t get me wrong. The managers had certainly earned a lunch. However, my problem was that for .00 we had one hour of reward and now that was over and would soon be forgotten. I really felt that we had not received .00 of value and felt that I should have been able to provide the three of us a lot more than hamburgers and salads for .00.

I have talked to several people about this .00 lunch. I wasn’t really surprised when many of the comments came back that I must be cheap since I am fixating on the price. However, this is how my mind works. What is the most value I can get for my .00? Was there a better option that would have allowed me to do better than just 3 lunches for the .00?

After the lunch and while I was questioning my expenditure I asked myself is lunch with me really a reward? Maybe they would have had more fun without the boss there? I am not a smoker but they both are. Neither one of them smoked since I was at the lunch table. I didn’t even think about it until afterwards that they both may have enjoyed a cigarette with their lunch. Perhaps their perceived value of this lunch was even lower than mine!

I offered to take them out to lunch because it was an easy option. I didn’t put much thought into it and that is the formula that usual ends up with you spending more money than you should have and receiving less value.

An asset keeps giving

When I spent some time thinking about it there were plenty of things I could have done for my staff that didn’t cost as much money but may have generated much more value. I remember one time I had my picture taken with a staff member on a day that she had been pretty battered by angry customers. I gave her a handwritten note with that picture in a frame. The note stated that I couldn’t do any of this without her. It cost me about to put that together but she has had that picture on her desk for years. Nowadays we laugh about how we looked back then but it always reminds her that I appreciate the work she does.

There have been times when I arranged for us to have our staff meetings in the park that is not far from work. It always felt so good to get out of work on a warm spring day and enjoy the fresh air while we discussed the issues we needed to work on. Those little breaks from the corporate conference room were meaningful to my staff and didn’t cost anything. They still talk about those park meetings years later.

This is how I look at a restaurant lunch versus the picture frame. The lunch was a liability. It was strictly a cost because the benefit lasted about 1 day at the most. We will all be hungry again tomorrow. The .00 is gone and I will never get that back. The picture frame is more of an asset. It had an initial cost but for the last 4 years it has given something every time my employee looks at it.

You have to look at every purchase you make the same way. Will this .00 purchase provide me with more than .00 in value or will it save me more than .00 in the future thus freeing up money to buy additional things? You can still enjoy those fun liabilities but first focus on buying assets that create more value which allows you to afford both.

For more information log onto BowmansMoneyCollege.com

Limited liability companies, or LLCs, are becoming more and more popular, and it’s easy to see why. The Limited liability Company (LLC) provides the desired limited liability while avoiding some of the drawbacks (like double taxation and excessive paperwork). They combine the personal liability protection of a corporation with the tax benefits and simplicity of a partnership. In addition, they’re more flexible and require less on going paperwork than corporations.

Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There may be unlimited number of members. Most states also permit “single member” LLCs, those having only one owner.

Member owned LLCs are analogous to partners in a partnership or shareholders in a corporation, depending on how the LLC is managed. A member will more closely resemble shareholders if the LLC utilizes a manager or managers, because then the members will not participate in management. If the LLC does not utilize managers, then the members will closely resemble partners because they will have a direct say in the decision making of the company.

A member’s ownership of an LLC is represented by their “interests,” just as partners have “interest” in a partnership and shareholders have stock in a corporation. 

Why should I form LLC?

If you have made up your mind to start your own business, you will need to figure out which type of business entity you want to set up. One of the most popular business entities is the LLC, which has many advantages and benefits. Set up an LLC can protect your personal assets, reduce your taxes and save your time and efforts in filing excessive paperwork. Formation of LLCs are preferred because they combine the limited liability protection of a corporation and the pass through taxation of a partnership.

What is the difference between single member or multiple members LLCs?

Generally, Limited liability Company (LLC) can be formed with unlimited numbers of shareholders. In such a case it is called multiple members LLC. Nevertheless, most states also permit “single member” LLCs, those having only one owner. A single-member LLC is taxed as a sole proprietorship, while a multiple-member LLC is taxed as a partnership.
 

Advantages of LLC formation

The Limited Liability Company, or LLC, is a relatively new type of business structure that combines the best features of the corporation with those of the sole proprietorship or partnership. Starting an LLC provides its owners many advantages and benefits which they can not enjoy altogether in any other type of business.

Personal liability Protection:
LLC is separate entity from its owner. Since it is viewed as a legally distinct entity, the personal assets of the owner (such as personal residences, and personal bank accounts) are not reachable by business creditors. The LLC owner’s liability is generally limited to the amount of money which the person has invested in the LLC. Thus, LLC members are offered the same limited liability protection as a corporation’s shareholders.

Tax Advantage:
The popularity of LLC filing is primarily based on the Tax Advantage. LLCs allow for pass-through taxation. This means that earnings of an LLC are taxed only once. The earnings of an LLC are treated like the earnings from a partnership, sole proprietorships and most S corporations. An LLC operates in most ways as a corporation, yet the distributions to its “members” (shareholders) are not subject to taxation at the corporate level. Instead, the distributions are “passed through” the corporate level and are taxed only at the individual level. Therefore, the LLC filing avoids “double taxation”.

Ease of Transfer
Starting LLC also gives you opportunity to sold ownership interests to third parties without disrupting the continued operation of the business. On the other hand, selling interests in a sole proprietorship or general partnership requires much more time and effort. An owner must individually transfer assets, business licenses, bank accounts, permits and other legal documentation.

No Ownership restrictions:
LLC formation also allows you to retain any number of members. By comparison, S-corporations cannot have more than 100 stockholders, and each must be a resident or citizen of the United States. None of these restrictions apply to an LLC.

Easy Generation of Capital:
If you create LLC, you have more options available to raise capital. You can admit new members by selling membership interests. You can even create new classes of membership interests with different voting or profit characteristics.

It offers greater credibility:
As a registered LLC, your business will enjoy legitimacy and greater credibility when dealing with other companies, banks and potential partners.

Flexible Management Structure and Flexible Ownership is Permitted:
Like general partnerships, LLCs are generally free to establish any organizational structure agreed on by the members. Thus, profit interests may be separated from voting interests.
 

How to Form a Limited Liability Company (LLC)?

After you decide to form an LLC, articles of organization must be filed with that state and initial fees must be paid. After your articles of organization are filed, your LLC should have an organizational meeting where an operating agreement is adopted, interest certificates are distributed, and other preliminary matters are completed. LLC kit includes all of the information and paperwork to make this process easier.

Publications:
A few states require notice to be published in a newspaper that an LLC has been formed. States with this requirement include:

    * Pennsylvania (corps only)
    * Georgia (corps only)
    * Arizona (corps and LLCs)
    * Nebraska (corps and LLCs), and
    * New York (LLCs only).

Federal Tax ID Number: 
A federal tax identification number, also known as an employer identification number or EIN, is basically a social security number for businesses. It is the number the IRS uses to identify the business, and it must be included on tax filings the business makes. Infotax Square can assist with the preparation and/or obtainment of your company’s tax ID number. If you operate your business as a sole proprietorship or partnership and are now looking to incorporate or form a limited liability company (LLC), you must obtain a new EIN for your business. 

Members in LLC: 
The IRS does allow one member LLCs to qualify for pass-through tax treatment; however, taxation of one person LLCs at the state level may be different.

Can a corporation be a member of LLC?

Yes, A corporation can be a member of an LLC. This allows you to create an additional level of ownership, which is designed to create an entity that can offer such traditional fringe benefits as retirement plans and an additional level of protection from liability

Where should I set up LLC?

LLC should be formed in the state in which it operates. An LLC is formed by filing Articles of Organization with the state in which you will be doing business.

Related Assets And Liabilities Articles

Copyright (c) 2009 Jeffrey Matsen

The following are a number of questions and concepts specific to Limited Liability companies along with their respective answers and definitions. The information provided will provide the basic knowledge necessary for someone interested in forming an LLC. An additional bonus are the examples which give real world applications and tie everything together.

1. What is A Limited Liability Company?

A limited liability company or “LLC” is a business entity that is authorized by specific legislation in most states of the United States and in many foreign countries. In almost every instance, the state or country in question issues a charter to the LLC upon its formation. The most significant characteristic possessed by LLCs is part of its name, that is, it provides limited liability. In this regard, it is very similar to a corporation.

2. How Do You Form An LLC?

An LLC is formed by filing the Articles of Organization with the relevant secretary of state in the U.S. or other licensing agency in a foreign country. The Articles of Organization are normally very brief and simple and provide only basic information with respect to the name of the company, the agent for service of process, the company’s address and its manager or members.

3. How Is An LLC Structured?

An LLC is structured much like a partnership except that it has members instead of partners. The LLC can be member managed in a manner similar to a general partnership or it can be manager managed like a general partner does in a limited partnership. If the LLC is member managed, normally, all of the members have an equal vote and decide between themselves on not only the major business and financial policies, but, also the every day operations. If the LLC is manager managed, the members only decide on major financial and business decisions and the manager handles all of the day-to-day business operations.

4. How Is The Structure Of The LLC Determined?

The founding members or promoters of the LLC determine the structure of the LLC by means of an Operating Agreement which is similar to a Partnership Agreement. Normally, when the Articles of Organization are filed, the state requires that the organizers determine in the Articles whether or not the LLC is member managed or manager managed. The members have an experienced attorney draft the Operating Agreement which sets forth the different rights and responsibilities of the members and covers matters such as capital contributions, division of profits, management, member meetings, transfers of member interests, dissolution and indemnification.

5. What Are The On-Going State Fees For An LLC?

California imposes an 0 Annual Franchise Tax on LLCs. This amount is due on the 15th day of the fourth month after the beginning of the fiscal year. For the first year, the due date is the 15th day of the fourth month from the date the LLC was organized. In addition, California, in its arrogance, also imposes a gross receipts tax on LLCs. For LLCs whose annual revenue is between 0,000 and 9,999, the additional fee is 0. The fee increases to ,500 for annual revenues between 0,000 and 9,999 to ,000 for annual revenues between million and 9,999, and to ,790 for annual revenues of million or more.

6. Tax And Accounting Treatment?

The LLC can elect to be taxed as either a partnership or a corporation. Almost always it is better to be taxed as a partnership. What this means is that the LLC files an Information Return and issues K-1s to its members showing the member’s share of the income or loss that the LLC incurs. The members then report this amount on their own individual Returns. The LLC, if it is taxed like a partnership, does not pay any income tax. If the LLC is a single member LLC, the owner may treat it as a disregarded entity for tax purposes and report the tax and related accounting on the individual tax return of the member. This eliminates the necessity of a tax return for the LLC.

7. Charging Order Protection

A charging order is a court order available to a judgment creditor directed to a limited liability company or limited partnership of which the judgment debtor is a member or partner which grants the judgment creditor the right to whatever distributions would otherwise be due to the debtor member/partner whose interest is being charged. The purpose of the charging order is to prevent the judgment creditor of an individual partner/member from access to the partnership/LLC assets while at the same time, giving the creditor some relief relative to distributions from the entity to the partner/member. The charging order denies the creditor direct access to the LLC assets and limits the creditor exclusively to collection of the income or distributions which the LLC assets might engender, but which can be withheld from distribution at the discretion of the LLC manager. What this means is that a creditor who has obtained a charging order only has the right to receive distributions from the entity when and if such distributions are ever made even though the entity itself may have substantial income. The charging order remedy is often times the exclusive remedy available to the creditor and provides substantial asset protection for the LLC owner.

8. Putting Real Estate in the LLC.

If the primary purpose of the LLC is to hold title to a real estate investment, the members will need to deed or convey the real property involved to the LLC by means of a formal deed that needs to be recorded. All of the rents with respect to the real property should be deposited in the LLC bank account and all expenses with respect to the property should be paid for out of the LLC bank account. All contracts with respect to the real property and service arrangements should be exclusively in the name of the LLC.

9. Examples.

The following are some examples of when and why an LLC might be wisely selected:

a. Ms. Simon is a widow, who in addition to her residence, owns a four-plex . She is concerned about potential liability above and beyond what insurance would cover and has elected to place the four-plex into an LLC of which she is the single member. She treats it as a disregarded entity for tax purposes and all of the tax and accounting are reported on her individual Return.

b. Dave, his brother Bill and their friend, Richard, each own a one-third interest in a small shopping center. They have created an LLC in which to hold title to the shopping center so as to protect their respective personal assets from any claims with respect to the shopping center. All three of them participate equally in the LLC which is member managed by the three of them and treat it as a partnership for tax purposes. The LLC files a partnership Return and Dave, Bill and Richard each receive a K-1, the information of which they report on their own individual Tax Returns.

c. Ron owns a 25% interest in a 76 unit apartment building which he manages. The other 75% is owned by various members of Ron’s family and by some friends. Ron has placed the apartment complex into an LLC which is a manager managed LLC since Ron is the one who does all of the management duties and responsibilities. The LLC reports its taxes as a partnership and Ron and all the other members receive K-1s for their shares of profits and Ron also receives a salary or guaranteed payment as manager which is paid to him as an expense before there is a division of profits.

d. The LLC can also be used to operate a retail or other business in a situation where limited liability is desirable, but the flexibility of the LLC is required.

As a small business owner one of the first things you need to do is to get a liability insurance quote to protect your business and your families assets. All it take is one trip by a customer, an employee making a mistake, a customer being shipped the wrong part and presto they are off to see there cousin who happens to be a lawyer. Liability insurance isn’t something a company, I don’t care how big or small can do without. There are different policies to fit any business.

This is the main reason that you want protection from all risks like general liability, product liability and don’t forget workmen’s compensation insurance if you have employees. A general liability umbrella insurance policy may be required for many small businesses to ensure you have adequate protection. When a lawsuit exceeds the value of your business liability insurance, your personal assets may be at risk and there are many small businesses that should consider personal liability policies for ownership, to protect personal assets.

When you get your liability insurance quote, consider the liability limits that are set on the policy, when comparing premiums. Not all companies figure there rates the same way. You can reduce your premium by changing your deductibles and some companies will even take into consideration your credit rating as well as a clean record of claims. You can’t forget to increase your coverages as your business grows. This means you should review your liability limits on a regular basis and get a liability insurance quote periodically to increase coverage.

Professionals need to be aware of other sources of liability, such as errors and omissions liability insurance or malpractice liability insurance. All companies have specialized liability risks no matter if your a construction company or a INTERNET business. It’s really important that you not try to hide exposure when getting your policy, you may get a cheaper policy but if something happens and your not covered you could lose all. Be carefully, in order for a claim to be considered it must be specifically stated in your liability insurance quote. If you are in doubt as to what types of liability coverage you have, an insurance expert or a lawyer can explain the terms of your liability insurance policy.

There is a lot to be considered for a liability insurance policy you can afford, so be sure and list any area that you might need coverage. Liability insurance is on of those things that you really can’t do without because one big lawsuit would wipe most small companies out without the coverage. Liability insurance will give you the peace of mind and protection you need making it a good bargain for the price. I can’t stress it enough that no matter what business or profession your are in, you need to get that liability insurance to protect it all.

Find More Assets And Liabilities Articles

Many small businesses start as a part-time effort that grow over time, and eventually become a profit generating venture. One of the difficult questions for a small business owner is, “When do I need to form an entity?” A follow-up question is which type of entity to form such as a corporation (sub-chapter S or C Corporation), limited partnership (LP), limited liability partnership (LLP), or limited liability company (LLC).

The business person who is a sole proprietor should be aware that his/her liability is virtually unlimited. When you do not have the protection of an entity under which your business operates, it is your personal assets that are at risk. Therefore, if a party were to sue you, your personal assets would be exposed. Many states, such as Texas, offer homestead protection so that creditors cannot foreclose on an individual’s home, but such laws vary from state to state.

The formation of a legitimate business entity offers varying forms of protection for a business person’s personal assets. Entity formation is the process wherein one establishes an entity authorized to conduct business within a certain jurisdiction. In Texas, one would file entity formation papers through the Secretary of State’s office. Each state has a government office that handles entity formation. Generally, an entity can be created for as little as -0 per application. Though this step often occurs later as a business grows, it is a small financial investment to make early on. Creating an entity also gives your business credibility in that you have taken the steps to define it as a functioning entity. The most common entity formed by a new start-up business is the LLC (Limited Liability Company). Limited liability companies are designed like partnerships, and therefore suitable to small businesses, but have asset protection similar to a corporation. When your entity is set up you will also receive a tax ID from the state comptroller. Therefore, you will likely have to file a franchise tax return in your state(s) of operation. You should also request a federal tax identification number (FEIN). You may want to consult a CPA to determine which type of entity offers the most tax advantages in your state.

The other component in protecting personal assets is to purchase business liability insurance. Most insurance carriers have business divisions which write general liability insurance polices. Contact your current carrier and see if you can obtain insurance this way. Additionally, you may be covered under your homeowner’s policy depending on the business you are in, anticipated revenues, and the potential exposure. Speak with your insurance carrier to find out what you need to do to protect yourself.

You can apply for the entity yourself or with the aid of an attorney. As mentioned earlier, you should speak with a tax attorney or CPA about which entity offers you the best tax advantage in your state.

General Sarath Fonseka declared his Assets and Liabilities. www.sarathfonseka.com
Video Rating: 0 / 5

In social functions, I always get asked about “How do I hide my assets?” From who are you trying to hide your assets from? Is there a legitimate way to hide your assets?

You will know if you have succeeded in hiding your assets if an asset search by an extremely interested party does not reveal your identity. In a post 9/11, it’s not possible. Everything has become more transparent with the passage of government banking acts.

Interested parties have a way of finding the true owner for the right price. The Internet is running on high steroids. Anything you do is public knowledge.

However, the original owner and its present owner can legally be changed without having to go offshore. Legitimate repositioning of assets from you to an irrevocable trust is perfectly legal. The fact is, if your assets are owned by a subchapter S. Corporation or a Limited Liability Company and in turn the shares of the Sub S or membership units of the LLC are owned by an irrevocable trust, it’s the fortress of US Asset Protection.

HIDE YOUR ASSETS WITH IRREVOCABLE TRUSTS

How to hide your assets is a simple as the repositioning your assets through an irrevocable trust with a true independent trustee. The key to the transfer is the exchange of equal value in return for the asset, or the receipt of a fair market value for the asset transferred.

If you reposition your assets, you will no longer own them. If you don’t own assets, no one will want to sue you; no one will want to track you; no one will want to know your name. You don’t have to go offshore. US Laws, US courts will defend and support your asset protection system.

GIVE UP CONTROL OF YOUR ASSETS TO AN INDEPENDENT TRUSTEE

These laws have been defined by numerous court cases, over and over, right up to the Supreme Court. You must however, give-up control over your assets to a true independent trustee. Your asset protection system is enhanced when a Limited Liability Company further re-defines your asset protection system.

HOW THE LLC CAN HELP PROTECT YOUR ASSETS

The LLC is nothing new, but (until recently) states refused to legislate its existence. The LLC resembles the German GmbH the French SARL and the South American Limitada forms of doing business. The LLC allow small groups of individuals to enjoy limited personal liability while operating under partnership-type rules (rather than the complex rules that apply to corporate-type structures).

The LLC is recognized by the IRS as a “pass-through type” of disregarded tax entity. That is, the profits or losses of the LLC pass through the business and are reflected and taxed on the individual’ member’s tax returns of the owners, rather than being reported and taxed at a separate business level.

Other pass-through entities include general and limited partnerships, sole proprietorships and “S” corporations. The IRS now lets an LLC elect corporate tax treatment if it wants it by filing IRS Form 8832. Consult with your tax advisor or call Estate Street Partners toll-free 888-938-5872.

Copyright (c) 2009 Jeffrey Matsen

A major goal of asset protection planning is to substantially diminish and reduce your financial profile. If you can restructure your assets in such a way so as to place them beyond the reach of future potential creditors, while at the same time maintaining a beneficial interest in those assets, you have succeeded in substantially reducing your financial profile. Accordingly, you are a far less attractive target for litigation because of issues of doubt of collectability, thusly reducing the likelihood that you will be sued; or if you are sued, increasing the likelihood of a favorable settlement.

A trust can be an effective foundation for your asset protection planning. Trusts have been utilized for centuries as a means of conserving and protecting property for the beneficiaries of the trust. However, most domestic trusts do not provide protection from creditors. The typical revocable living trust, wherein the trustors are the lifetime beneficiaries and retain the power to revoke, amend and invade the principal of the trust, provides no protection whatsoever against the creditors of the trustors. Accordingly, absent specific legislation to the contrary, self created or self settled trusts are ineffective for asset protection planning purposes.

As was stated previously, most self settled trusts are not protected from creditors. However, recently, several states have provided various degrees of asset protection legislation for a self settled trust. The trust legislation in Alaska, Delaware, Missouri, Oklahoma, Nevada, Utah and Rhode Island is similar in many respects to the asset protection trust legislation found in several offshore jurisdictions. It should be noted, however, that the courts have not had an opportunity to pass muster on this type of legislation because of its recent enactment and because the statute of limitations in most cases has not expired. Depending on the timeline involved with respect to when the claim has arisen, these trusts can be and should be considered in appropriate circumstances, but only by an attorney who understands all of the ramifications.

Offshore asset protection planning normally involves the utilization of offshore trusts and other entities. Offshore planning generally raises justifiable concerns with respect to asset security and tax issues. The most efficacious manner to address these concerns is to make certain that you are receiving the best advice and counsel from a qualified expert in the area. You must be sure that the attorney with whom you are dealing has expertise in the field and is recognized in this regard by his peers.

A FAPT is a trust that is set up in an offshore jurisdiction which has enabling trust legislation providing for substantial protection against creditors of the trustor. One of the greatest advantages of the FAPT is the fact that by its very nature any legal attacks against its assets are transferred abroad to a different legal system. The FAPT is generally much more expensive to set up and create than a domestic trust and requires a certain willingness on the part of the Trustor to deal with offshore jurisdictions and trust entities. The FAPTs’ greatest value is for asset protection planning well in advance of any potential creditor problem. Moreover, many times FAPTs are only used when the client already has some international connections and networking. Recent cases have emphasized the need for careful planning in the structuring of the FAPT if it is to be legally efficacious and successful in meeting the purposes and objectives of the trustor.

Most foreign jurisdictions do not recognize US judgments. This may force a trial de novo on the merits under the laws of foreign situs in order for the creditor to impose liability on the trustor and reach the assets of the FAPT. Obviously, the fees and expenses of this trial de novo and the burden of having to select offshore counsel can be substantial. Moreover, the FAPT jurisdiction, generally, requires plaintiffs to employ attorneys who are licensed in that jurisdiction.

Most foreign situs jurisdictions require that the burden of proof in challenging asset transfers to a FAPT is on the creditor and does not shift to the trustor. Moreover, many foreign jurisdictions impose a higher standard of proof upon civil litigation plaintiffs such as the “beyond the reasonable doubt” standard. This is in sharp contrast to the “preponderance of the evidence” principle utilized in US domestic civil cases.

The FAPT legislation of many jurisdictions establishes a statute of limitations for challenging asset transfers to a FAPT that begins to run on the date of transfer. This is contrary to US law where the statute may begin to run the date the transfer is “discovered” by someone with a claim against the trustor. Additionally, the statute of limitations of many FAPT jurisdictions is much shorter than the typical four year statute found under US law.

Manifestly, it is going to be much more expensive and inconvenient to prosecute a claim offshore. Think of the inconvenience of having to pursue a claim out of state and then multiply that by two to three times the cost to pursue the matter in a foreign jurisdiction. Many foreign jurisdictions prohibit contingency fee arrangements forcing the claimant to finance a litigation process entirely on his/her own. Creditors may think twice about having to deal with a completely different legal system out of the country. This unfamiliarity, plus the additional expenses and costs, and the entire uncertainty with respect to the process, adds a substantial element of protection to the FAPT.

The FAPT may assist the trustor in achieving several other objectives and planning goals independent of asset protection planning. Traditional estate planning issues such as the orderly transfer of property at death, the avoidance of probate, the strengthening of spendthrift provisions, greater privacy w, the management of offshore assets and businesses and premarital planning can all be addressed by the FAPT.

The easiest way to understand how a FAPT protects cash and securities is to focus on the process by which a claimant would try to reach trust assets. A claimant must either bring his case in a court that has jurisdiction over the trustee so that the court can order the trustee to give up the assets or initiate litigation in the court that has jurisdiction over the assets themselves so that the court can attach or seize the assets. However, if the client’s offshore planning strategy is properly structured and implemented, no domestic court can successfully attack the plan because it would not have the ability to force the offshore trustee to expatriate or return the assets nor would it have the ability to levy on assets properly held outside of the United States.

Protecting non liquid assets like real estate, accounts receivable and business equipment involves the process of equity stripping. Although some of these assets can be put in charging order protected entities that may provide some limited protection, the most effective strategy available to protect a domestic illiquid asset is to strip that asset of its value by encumbering it as collateral for a loan and protecting the loan proceeds with your other liquid assets in the FAPT. Creditors are going to be very discouraged attempting to levy on an asset that may have substantial value, but has very little equity because of a loan encumbrance or lien.

Generally speaking, the establishment of the offshore asset protection plan will be tax neutral. The FAPT will either be a US grantor trust or a foreign grantor trust with a US grantor for US income tax purposes. It will be necessary to file various forms with the Internal Revenue Service in either case, but these forms will only demonstrate that the taxpayer is a responsible and law abiding citizen.

One very typical arrangement with respect to a possible offshore strategy would be for the client to establish the offshore asset protection trust utilizing an offshore trustee. The trust would then set up an offshore limited liability company which would be entirely owned by the offshore trust. You could be the manager of the LLC with direct signature control over bank accounts and securities accounts. In the event of a crisis, you would obviously resign as a manager and appoint a trusted friend, relative or a management company. There are modular variations to this strategy that can be worked out with your professional advisors.

The proliferation of plaintiff lawsuits and the expanding concept of liability that has become second nature in our court system have engendered much concern and anxiety about the preservation of wealth in the United States. Many professionals like doctors and lawyers as well as business owners, corporate executives, real estate developers and investors, contractors and others operate in an environment of high risk. Many such people lack confidence that they will be treated fairly by the US legal system and are desirous of reducing their financial profile and eliminating their liability potential. For these individuals, the offshore planning alternative may very well be the best planning device available for maximum comfort and piece of mind.

For most of us, asset protection consists of the insurance policies we buy to protect our home and its contents and our autos. These policies have the added benefit of providing you a defense as well as source of funds to pay damages if you cause an accident.

The law also provides various means of asset protection, ranging from “homestead exceptions”, protection of ERISA retirement funds from creditors, joint property ownership, bankruptcy and more.

There are other types of asset protection that are used by wealthy individuals to shield their assets from creditors or the tax man.

They are popular with professionals, who can lose everything through a simple error of judgment.

Business and property owners may use them as a tax shelter and/or estate planning measure, as well as a way to avoid creditors.

The problem with most asset protection schemes is that they are expensive to implement and maintain, almost always forcing you to give up all or part of your ownership in the asset you are trying to protect and, in many cases, are illegal to boot.

Trusts, different corporate and partnership entities and off-shore accounts are popular in this field.

If you are one of those who feel they need this kind of protection, consult a very well qualified lawyer – a CPA by himself won’t do. And apply common sense. A lot of so-called professionals in this field have wound up getting their clients indicted or into serious tax problems because of miscalculations they have made.

There is also an abundance of fraud, especially with off-shore accounts. The money you deposit into an off-shore trust might simply disappear.

Don’t forget the IRS has been subpoenaing the names of people who just bought books about off-shore investing from the so-called gurus of this field and are now delving into their finances.

Finally don’t trust that the lawyer-client relationship will protect you, especially if you’re moving money off-shore. I’ve witnessed several instances of lawyers turning their clients in when the IRS or District Attorney pays them a visit.

Asset Protection for the Rest of Us

Most of us just have to worry about the simple mistakes we can make that cause personal injuries to another. A car accident or a slip and fall on your property can result in a lawsuit and a huge claim for damages.

This is where our homeowner’s or auto insurance companies step in. They will provide lawyers to defend the claim, hire experts if necessary and pay damages up to your policy limits.

In spite of the rash of lawsuits plaguing the US, most people with adequate insurance have little to worry about.

There are several reasons for this. First of all, personal injury lawyers, in spite of their reputation as sharks, really don’t want to throw defendants out of their houses, even if they could. They rather go for the low hanging fruit – in this case the proceeds of your liability insurance policy.

They know that unless you were drunk or grossly negligent, any liability award can be discharged in bankruptcy. They also know that many states have “homestead laws” that prevent the seizure of your home and that the money in your retirement plans are protected by varying degrees, depending on the state you live in.

In most cases, they will settle for the insurance policy limits, even if they are lower than what the case might be worth.

However, especially in cases with severe injuries, the lawyer might have no choice but to pursue your personal assets if your insurance coverage is not adequate and you do have other assets to attach – don’t forget your wages are an asset and can be garnished.

For this reason, anyone with a good income and the usual collection of assets, for example a home, car, IRA’s, other savings and investments, some original art, silverware, jewelry, etc should carry at least million in liability coverage, maybe more if you live in high verdict states like California and New York. Your insurance agent should be able to advise you on a prudent liability limit.

This can be done by buying single limit liability coverage of 0,000 on your auto insurance and homeowner’s insurance policies. You then buy an umbrella policy with a 0,000 deductible. If you do this all through one agent, he can tie everything together so that your coverage to a million or more is seamless.

Property Transfers

If you have already had an accident or have been sued for some reason, it is too late to try to transfer property to another. It will likely be ruled fraudulent, as will transfers made shortly before a bankruptcy filing.

If you suspect you might be sued (or might have to go bankrupt), especially for something you have no insurance for, for example, a business deal gone bad, consult a lawyer. You might still have time to transfer assets to either a relative, a trust or to another corporation.

Do not do this on your own. If done incorrectly, you might face tax consequences and/or criminal charges and still face the loss of your property.

And remember if you transfer your property to a relative, it can then be attacked by that relative’s creditors.

This article does not purport to offer legal advice. Always seek the advice of a well qualified attorney before taking any steps to shield your assets.