Tax Benefits of an LLC Attorney in Millcreek

Tax Benefits of an LLC Attorney in Millcreek

In most , th tx benefit of an LLC i that it a -thrugh entity for taxation ur. An LLC int taxed t th rrt lvl, which means it vid double txtin. Thi mn tht u dnt hv to file a rt business income tx return, whih llw th inm frm the buin t be taxed nl t th rnl level.

Anthr tx benefit of n LLC is tht mmbr n lim their own hr f l from th business n thir inm tx, mthing tht comes in handy in the trtu years.

What i th Bt Tx Classification fr n LLC?

Th bt tx lifitin fr n LLC dnd on your wn circumstances. There r fur options: dirgrdd ntit, rtnrhi, C Crrtin, and S Corporation. In mn , th best option is t frm n LLC nd lt t b treated as n S Corporation for taxation ur.

Hr r the bnfit of forming an LLC and hing S Cr tx classification:

  • Lgll, your business will be n LLC and enjoy th ease nd flxibilit tht an LLC brings withut the rrt headaches.
  • Youll nj pass-through inm and vid double txtin.
  • Th IRS will trt ur business a rrtin, whih means that u and thr owners n nj lri nd wg wll as dividends that rnt ubjt to SECA tx.

tax benefits of an llc

Hw Do Yu File Taxes for n LLC?

LLC fil taxes uing their wn personal tax rturn because an LLC i considered a -thrugh ntit fr tx ur. If ur a single mmbr LLC, u file tx th same w a l rritr does uing Schedule C and your 1040. If u hv mr than n mmbr, ull likely b tx a rtnrhi. Thi mn tht h wnr for their share using Schedule E and thir 1040. Additinll, th LLC has t fil a Frm 1065 with th IRS. Form 1065 is nidrd jut n infrmtinl rturn. The IRS u it t be ur tht all members r reporting thir inm correctly. Eh mmbr l gets a Shdul K-1 tht breaks down their hr of profit and l.

If the LLC elects t b trtd as a rrtin for txtin purposes, firt it h to fil Frm 8832 and lt rrt tx trtmnt. Th LLC will thn fil a tx rturn if it wr a corporation.

D LLC Fil Federal Tax Returns?

LLCs mut fil fdrl tx returns if it h t b trtd as a rrtin fr tax ur b filing Form 8832. If th LLC isnt treated a rrtin, th LLC itlf dnt file a tx rturn. Intd, h mmbr mut fil a return claiming their share of the rfit nd l.

Wht Type f Tax Rturn D an LLC Fil?

An LLC nl fil a tax rturn if it elects t be trtd a rrtin. If it h a C Crrtin election, it fil frm 1120. If it chooses S Crrtin election, it files frm 1120S. If the LLC isnt treated a rrtin, it dnt fil tx. Th tx rnibilit falls n each f th owners of th LLC nd tx are fild at the personal lvl.

What i a Disregarded Entity fr Tx Pur?

A dirgrdd entity i a buin entity tht is nt rgnizd as rt frm its wnr, rulting in the ntit nt filing a rt tx return.

D I Need an LLC fr M Rntl Property?

Yu m need n LLC for ur rental rrt if ud like t rtt ur rnl t. Mr thn anything, whether r nt u nd n LLC for a rental rrt i a rnl hi and n tht huld b md with th hl of a rfinl. An LLC i a gd hi bu it protects ur rnl t and it rtt t startup nd mintin. On th thr hand, u could iml jut gt a dwlling li added to ur insurance tht wuld do th m thing with n umbrella policy fr xtr urn.

How D I Trnfr a Prrt t n LLC?

T trnfr a rrt t n LLC, u should follow the fllwing t:

  • Cntt your lndr if theres a mrtgg invlvd.
  • Frm n LLC if you dnt have n lrd.
  • Obtain n EIN for th LLC and open a bnk unt in the LLC nm if you hvnt lrd.
  • Obtin nd fill ut a deed frm or hv n attorney drw u a dd fr u.
  • Sign th dd th guarantor t trnfr th rrt t th LLC.
  • Rrd th deed by ubmitting it to ur unt rgitrr.
  • If it a rental property, hng your l t rflt tht the LLC owns th rrt and not u personally.

Trnfrring a Property with a Mrtgg

If you hv an xiting mortgage on the rrt, th mrtgg doesnt trnfr to th LLC. Instead, th titl d nd you are till personally responsible for th mortgage. Yu shouldnt tr t trnfr a rrt with a mrtgg without checking with ur lender because some hv a du n l clause tht requires th full mrtgg mnt un trnfr.

Obtining a Dd

There r tw types f deeds: quitclaim nd wrrnt dd. In mt , when u urh a rrt, you gt a warranty deed. The wrrnt dd tt tht th rrt has a ln titl thi dd trnfr t ur LLC with the m guaranteed. A quitclaim deed t trnfr a title passes any interest you hv t th LLC. Thi dd dnt guarantee that you wn the property r tht th titl is gd.

Changing Yur L

After uv obtained nd filld out a dd frm and had the deed recorded, u should change ur l if u are renting th rrt. Chnging ur lease just mn tht you hng th wrding f th document to replace your rnl nm nd infrmtin with the infrmtin f th LLC. The tenants rnibiliti wnt hng, but instead thir mnt i made t th LLC nd blng in n LLC bnk account.

Free Consultation with a Utah LLC Lawyer

If you are here, you probably have a business law issue you need help with, call Ascent Law for your free business law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah

84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

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When are Testamentary Trusts Used?



just what is a grantor will UT Attorney

just what is a grantor will UT Attorney

A grantor trust is when someone decides to organize his/her estate. It is used when planning wills, welfare etc. This type of trust also allows the grantor to control his/hers belongings as it can be established during the grantor’s life; therefore it can be revocable. The grantor is allowed to change or cancel it.

After the owner’s death, the grantor trust becomes irrevocable. It means that the person, who has been named in the trust to be the legal successor, has full control over the trust according to the established terms. Therefore the designated beneficiary will be legally entitled to the owner’s welfare.

Not only is the grantor entitled to administrate the trust but an experienced person too. Hence the attorneys play an important role. If you consider hiring a lawyer you should know what his responsibilities are. Ask him for a living trust sample in order to know exactly what it implies.

what is a grantor trust

The living trust sample exemplifies the content of a policy for the client to know exactly what he deals with. He should know all the structure and what types of revocable living trusts are being used mostly.

You should never use a form from the internet. That is a recipe for disaster. We have litigated cases where forms were used. You need to meet with an attorney before you make a trust.

It is very important to name a specialized person who will act in the beneficiary’s interest, and who will be in charge of the assets on grantor’s behalf in case of any accidents that might happen, like incapacity due to accidents, death etc. If you don’t take this into account, after your death, the family has to ask for court’s decision in order to get the grantor’s belongings.

The grantor trust is considered to be a separate legal process and therefore it is not subject of succession. Hence the beneficiaries are entitled to have access to the welfare without any complications. The costs are lower. Even so, one of the disadvantages when establishing the trust is that during grantor’s life, the trust earnings can be taxed.

It is important to ask your legal advisors for details when you decide to establish a grantor trust. A good attorney should deliver you all the information you need, for example the state’s laws or what king of assets you can transfer, as some states (in case the property is situated in another state) have specific rules, such as, the trustee should be a resident of that specific state.

According to the Internal Revenue Code, the term “grantor” describes any trust where the person who creates the trust is treated as the owner of its property and assets for both income and estate tax purposes.

In the words of the IRS, a grantor trust is one “over which the grantor … retains the power to control or direct the trust’s income or assets.”

This distinction places grantor trusts into the category of “revocable” living trusts. Trustmakers, also called grantors, can undo this type of trust. They can amend them and make changes to them at any time as long as they remain mentally competent.

A grantor typically acts as trustee of his own revocable living trust, retaining the power to control its income and assets. A grantor can name or change the trust’s beneficiaries, and he can decide who receives trust income. He can manage stock options for the trust and control trust fund investments. Because the grantor personally reserves all these rights, any income the trust generates is taxed to him personally.

Free Consultation with a Trust and Estate Lawyer in Utah

If you are here, you probably have a trust matter you need help with, call Ascent Law for your free trust law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah

84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

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Why You Required Great Communication in Settlements

Why You Required Great Communication in Settlements

Ngtitin i a bi r consisting f mmuniting bk nd frth t gt wht u want frm thr. Cmmuniting is xtrml important in negotiating. It ruir you t xr id lrl nd listen intntl.

The bilit to mmunit lrl, t xr id so tht th other rt n understand, i an ntil negotiating kill. Wk communication m sink th ngtiting r, so imrv ur kill, ur ngtitin do not fltr.

Rvling ur itin t th rlit rtunit is nt wht I mean by bing clear. It jut means you huld speak, write, or otherwise mmunit ur intended udin undrtnd th message u wih to convey. Thi und iml, but thr r a lt of miundrtnding t the negotiating tbl. Th key t clear mmunitin i t think f what u wnt ur litnr t d, think, or feel as a result f the mmunitin. Do nt think of yourself nd wht u wnt t tll th litnr. Think f the result u wnt your mmunitin t achieve nd how bt t ufull btin th desired result.

Firt be lr with yourself rgrding wht you wnt. Thn rnt ur id so the listener n undrtnd. If ur listener bm lost, it i ur responsibility t hl thm get back n trk. D nt um nthing. B ur ur int are undrtd.

Is it possible that w’v gt the id f ngtitin all wrng?

Sm of u d, nw. It’ t think f negotiation as a gm, or a contest-especially whn you’re gd at it! A you rh the tbl for a negotiation, it n b tmting t think but how u might ruh your nnt, r hw u might tr t get mn f ur terms agreed to as ibl.

But in th end, tht’ n mt nd infftiv rh. Negotiation should rll b about compromise. It should be but both rti invlvd feeling lik th gt mthing f vlubl-nt necessarily ll f thir wishes met, but at lt a fir shake.

Evrn huld wlk w frm the negotiation tbl fling gd about thing; tht’ the id, anyway. It’ idl because it build a fundtin for a lng-trm rltinhi from whih both rti benefit. Consider: If the ttlmnt u reach is lopsided r unfir, at lt one rt is ging to b rlutnt t m bk to th negotiation table again. It’ essentially a burnd bridge.

It’s nt but winnr nd losers, then. Ngtitin i rll about lr nd fftiv communication. Cmmunitin i hw you rriv t a nluin tht leaves u h, but l lv your rtnr feeling lik he r h w heard nd rtd.

why you need good communication in negotiations

Th Lt Art f Listening

S wht are the mmunitin kill you nd in order t b a mr fftiv negotiator? Hr’ n imrtnt ti: The list dn’t bgin with king. It bgin with litning. Active litning i rh the mt ignifint communication skill you will vr learn, and it’ what rt great ngtitr from inxrind nd ineffective n.

A th other person talks, dn’t jut think about how you’re ging t rnd, r what you’re ging to nxt. Tht’ a uik w t l invlubl infrmtin. Intd, rll fu n undrtnding th person’s vlu, goals, nd point of view. Enurg th person to keep tlking, rthr thn rushing t jump bk into th dialogue. “K going,” i mthing grt negotiators ll th time. Or: “Go on!”

Remember t rd between the lin, t. It’s nt just about wht’ bing id, but wht’ being imlid. Evn bd lngug n b tlling. Be lrt t whether th rn seems n, lm, frutrtd, r tndffih.

R-ntring th Cnvrtin

Even when u d trt ur part of th diuin gin, ur gl shouldn’t nril b t start rmbling. Intd, k utin. Tr t lrn wht th thr rn is aiming fr, and whr u might find common ground. Th mr infrmtin you can gthr, th better rrd u will be t rh n agreeable settlement.

Hfull, ur utin will nurg th other ngtitr t fllw uit nd mk m inuiri of you; tht’ whn u’ll really start rriving t mmn grund. In any , wrk thrugh ur conversation as though it i a llbrtin. Don’t communicate lik you’re king to an dvrr; mmunit like u’r king with a llgu, someone with whom u’r wrking tgthr t find a solution t a shared problem.

Remember that negotiation i but mving frwrd together. It may und counterintuitive, but that’s the bt way t rh n agreement tht trul satisfies.

Free Consultation with Negotiation Lawyer in Utah

It’s time to act, call Ascent Law for your free consultation (801) 676-5506. We want to help you!

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah

84088 United States
Telephone: (801) 676-5506