Legal-Ease: LLCs and taxes

Limited Liability Companies, or LLCs, are often established by business owners to protect assets and limit liabilities. Most often when an LLC is organized correctly, net taxes are not typically increased or decreased. But, there are some exceptions to this. 

Taxpayers can decide to have their LLCs taxed like “S corporations” as opposed to “C corporations.” “S Corporations” are slightly less cumbersome in tax administration than “C Corporations.” Taxpayers can also decide to have their LLCs taxed like partnerships if there is more than one owner. If the LLC only has one member, then it can be taxed as a sole proprietorship. Most business attorneys will consult with a client’s tax preparation professional before advising on how an LLC should be taxed. 

Legal-Ease: Facing a medical crisis without prior legal preparation

Advance preparation doesn’t always happen as it should, and sometimes a medical crisis can leave you feeling helpless and underprepared. Fortunately, what you are likely to need from an attorney in a medical emergency is often pretty straightforward. 

First, be sure to execute two powers of attorney. This will allow someone to sign documents and make decisions for you. One power of attorney should address financial decisions while the other power of attorney should address healthcare decisions. You can also sign a living will if you’d like, but a good healthcare power of attorney should allow your agent to sign a DNR for you. 

Legal-Ease: What to consider when considering retirement

Retirement typically means that while you still may work, the “make a living” phase of your life has wound down. When Lee works with clients preparing for retirement, he typically focuses on four major considerations. 

First, Lee asks his clients preparing for retirement about taxes. Second, retirees will need to decide when to take Social Security or money from a retirement plan. Third, people planning for retirement need to consider their healthcare options. Fourth, retirement is a perfect time to get more serious about estate planning and asset protection. 

Legal-Ease: Capitalism or price gouging?

Of all the devastation that we’ve seen on the media in the wake of Harvey in Texas, some of the more widely shared photos were of price gouging. One picture that was especially widely shared on social media was of bottled water that was marked up to more than twice its value before a storm. So the question is, is this just capitalism, or is it price gouging? 

Price gouging typically means spiking the prices of services or commodities to a level that’s considered to be unfair and that it’s exploiting customers. Price gouging is frequently discussed in the wake of natural disasters such as Hurricane Harvey. There is no federal law that governs price gouging, although some people in congress have introduced legislations to try to limit price gouging.