bdsjake - 1/30/2012 17:26
jakescia - 1/30/2012 13:54
re the use of attorneys..........merely my personal experiences...........after over 35 yrs of being involved with income taxes/preparation/structuring, etc., with the exception of a bonafide, practicing TAX attorney, or an attorney heavy into estate work and with respect to solely estate laws..........I have yet to meet an attorney who knew squat about income tax law and what structures a business should use for best ongoing treatment under
I absolutely agree with this, tax is a unique area. There is a flip side though, based merely on my experience after 18 years as lawyer, that most accountants know very little if anything (that is, less than squat) about the law, e.g., establishing a corporation or LLC. E.g. (and state laws vary, keep that in mind) some accountants in Missouri will advise a client to set up an LLC online, it can be done for $50 I think online, v. $105 by mail plus attorney fee. BUT they fail to mention to the prospective LLC owner that to meet all legalities for a lawful LLC they need an operating agreement. OOPS! its usually a simple document that shouldn't cost too much, and a decent lawyer will include as part of a package to set up an LLC, but without it, it may allow someone to "pierce the corporate veil" as they say and there goes one good reason for an LLC, liabilty protection. Also, they may forget to mention not commingling funds in a bank account, changing letterhead, etc, etc.
Bottom line, for accounting advice, see an accountant, for tax advice see someone trained in tax whether accountant or lawyer, for legal advice, see a lawyer!
Yes . . . Good points. But, that liability part - doesn't matter, most competent lawyers will go after personal just because and to cover all the bases. They have nothing to lose and it hits two birds with one stone. Then it's up to the LLC to prove otherwise. Consider additional umbrella insurance. You would need that expense for the LLC anyway.
To be or not to be LLC.
