Robertson Law Group "Your Wills, Trusts, and Asset Protection Law Firm"

COMMONLY ASKED QUESTIONS

1.         What is the difference between an Scorporation and a LLC?

An S corporation is a Corporation, which elects to be treated as a Small Business because they want to avoid double taxation of a Corporation.  An Limited Liability Corporation(LLC) is a hybrid between a corporation and partnership.  The LLC is taxed in a similar manner to a partnership because the IRS ignores the fact that the LLC is incorporated.  Thus, each partner pays taxes on a 1040 personal tax form as though they owned their LLC interest without being incorporated.  For liability purposes, an LLC provides limited liability protection. Unlike an S corporation, an LLC provides flexibility in a similar manner as a partnership.  This flexibility makes an LLC idea for joint ventures among two or more people.

2.         Do we need bylaws or a written agreementamong our business shareholders?

At a minimum, you should have bylaws (S corporation) and an operating agreement for an LLC.  Bylaws or an operating agreement should give you specific instruction in how to elect new shareholders/partners, how to distribute profits and losses, how to elect new officers among many other things. For partners, it is essential to have a written partnership agreement to prevent partnership disputes.  In most businesses, partnership disputes are the most common disputes and unfortunately, most partner’s personal and business assets are subject to another partner’s legal claim.  A common rule is a person should not own their business interest in their personal name if they have partners.

3.         When a lawsuit occurs against the business,why do the business owners often get sued in their personal name? 

A common belief is that if someone incorporates a business, they will protect their personal assets from a business creditor.  In my experience, most business creditors will file a lawsuit against the business and individual business owners.  In many instances, liability protection of a business is a myth.  It is important that you never sign in your personal name (except for business guarantees—be carefulthough).  To receive SBA bank loans, your bank will require a personal guarantee. You must maintain separate business bank accounts, do not commingle your personal and business assets, and have at least four business meetings throughout the year.  The key is you must document that you operate your business like a business to maintain limited liability protection.  My advice is to protect your personal assets from business liability exposure prior to a lawsuit.  After a lawsuit, it may be too late.

4.         Why Should Business Owners Be Careful WithThe Title To Their Home?

In today’s economy, my law firm is working with a lot of distressed businesses.  A common trait is that these business owners did not anticipate the possibility of lawsuits.  Approximately twenty (20) percent of business owners will be sued on a yearly basis. In many cases, a business owner sues another business and gets countersued.  Thus, my simple advice is to protect your home and other assets prior to a lawsuit.  Most husbands and wives title their home in a manner where a creditor can force the sale of their personal residence despite their spouse not being active in the business. This can be simply cured though by advanced planning.

5.         Why Are Wills and Trusts Important to aBusiness Owner?

Incapacity is a real concern among business owners especially over the age of fifty (50) years of age.  Strokes, cancer, alzheimers, and many other issues affect those over the age of fifty (50). A power of attorney for healthcare and property is vital because you nominate an agent to act on your behalf if you shall become incapacitated.  If you become incapacitated, nobody can cash your checks, write payroll checks, or conduct your business affairs.  Thus, a proper business succession plan is important.  For most business owners, a trust is important because it avoids probate and guardianship court and a smooth transition can occur upon your incapacity or death.

6.         Why is Asset Protection Important to a Business Owner?

First, asset protection is a legal strategy of using Trusts,LLCs/Corporations, and other strategies to protect your personal assets from liability risks.  For most business owners, their business is an extreme high likelihood of liability exposure.  One lawsuit can destroy you and your family’s retirement and financial stability.  Generally, certificate of deposits, stocks, checking and banking accounts can be frozen upon a judgment.  A judgment is when one party wins a lawsuit.  With advanced planning, we canprotect your personal assets from a business liability.

7.         Who is Robertson Law Group, LLC?

We are a law firm, which concentrates in Estates and Trusts, Commercial Transactions, Asset Protection, and Commercial Litigation.  These areas of law are interrelated and an knowledge of these areas of law is necessary to best protect a business owner and their family.  We have a downtown Chicago law office at 542 S. Dearborn, Suite 1260, Chicago and operate out of a home office in Naperville, Illinois.  In Naperville, Illinois, we offer home, business, or office visits.  The principal, SeanRobertson, has a business center, which offers privacy and a nice environment for a consultation.  Robertson Law Group, LLC is a family business because Sean and Brenda Robertson work as a team.  As a husband and wife business, we offer big law firm quality with a small law firm touch.

8.         What is the Principal’s Background?

Sean Robertson (“Sean”) graduated from University of Illinois at Urbana-Champaign in1997 and graduated from DePaul University College of Law in 2003.  Sean concentrated in Taxation, Corporate, and Wealth law.  Sean has expertise in LLC and Corporate Taxation, LLC and Corporations, Estate Planning and Estate GiftTaxation, Employee Benefits, and Asset Protection. 

Sean also is Of Counsel with Debt Counsel for Seniors and the Disabled where he is the Asset Protection Counsel.  As Asset Protection Counsel, Sean counsels seniors and the disabled throughout the United States. On a daily basis, Sean understands how creditors and debtors operate to avoid paying creditors.  Sean works for creditors and debtors.  Thus, Sean is a Wealth Preservation Attorney and Experienced Entrepreneur who understands that risks that entrepreneurs and business owners take when owning a business. 

Robertson Law Group, LL

630-364-2318 or 312-498-6080

e)  RobertsonLawGroup@gmail.com

Office locations in Naperville and downtown Chicago

Key words:  Wills, LLCs, S corporations, Naperville, Chicago, suburbs Chicago, Lisle, Downers Grove, Aurora, & downtown Chicago