The Recession Started In December 2007 — So Sayeth Jim Kramer
January 28, 2008
When a guy with as much "real world" economic experience as Jim Kramer, a man who has been bullish on the markets and the economy for years, says that the (you know what) has hit the fan — you had better take note and listen up.
That said, and as much as I believe his analysis to be correct — I'm not worried a bit. If I worked for a corporation, I'd be worried. If I relied on the government, I'd be worried. If I were on a fixed income, or disabled (God forbid), or reliant on the Democrats or Republicans to fix things, I'd be very, very worried.
But, I have a good mind. I am capable of thinking, and planning and initiating action. No matter how dark the economic horizon becomes, people will always trade, eat, live somewhere, etc. For those of us (and I do mean "us", because you wouldn't be reading this unless you were the type of person capable of weathering the coming economic downturn and prospering in spite of it) that still possesses the ingenuity of spirit that once made this nation great — all will be just fine. No worries.
Go ahead and watch the video. Then start making plans for your financial future.
And above all else, don't worry, but do take action.
John Michailidis is a recognized business consultant, attorney, success coach, and author of the WealthLoopTM Series of books and training materials for aspiring entrepreneurs and investors. Please use the contact form to get in touch with him regarding personal coaching and business consulting. Download the FREE, 40-page, .pdf "Wealth Creation Manual."
Protect Your Businesses and Assets With "Entity Structure" Planning
January 3, 2008
Perhaps the most basic, and important step you can take to protect your businesses and assets (e.g.: real estate holdings) is to limit your exposure to liability through the proper use of "entity structuring".
When you operate a business in your own name you are operating as a "sole proprietor". Operating as a sole proprietor means that you are completely and totally responsible for all debts and liabilities associated with that business. Not only can a creditor (or the courts) go after the assets of the business, but they can go after anything in your name — cars, real estate, your watch, bank accounts, etc. Everything you own is exposed to a claim!
A general partnership is the equivalent of a sole proprietorship when more then one person is an owner. Each general partner is said to have "joint and several liability" with respect to claims against the business. This means that each partner is 100% responsible for all claims, and like a sole proprietorship, this goes to ALL of the property owned by the partners, not just the business property. Realize that "joint and several liability" means that if one of the partners is flat broke, but the other has assets to satisfy a claim, then 100% of the claim can be satisfied from the assets of that one partner. Just because you were 50/50 partners does not mean that each partner is limited to paying only half of any claim — each partner is 100% liable to the extent that the other partner is unable to satisfy a claim!
Also, if you operate as a sole proprietorship, or general partnership, "doing business as" a name other than your own is not the same as using entity structuring to shield yourself from personal liability. Just because you use a trade name and not your personal name does NOT mean that you are protected.
So, what are "entities" and how do they shield you from liability?
Entities are sanctioned by States and require the filing of paperwork with the State's Attorney General Office and the payment of fees. In addition to the initial filings and fees there are regular renewal filings and fees. Some of the recognized entity structures include:
- C Corporations
- S Corporations
- Limited Liability Companies (LLC's)
- Serial LLC's
- Limited Partnerships
The reason why there are different types of entities is that each has its own unique advantages and disadvantages with respect to such things as how they are taxed, the number and type of owners allowed, and the degree of paperwork required to operate as such. Different entities are more appropriate for some situations than others, which is why it is important for you discuss your situation with a knowledgeable legal expert before choosing the type of entity to use. Also, because these entities are created by States, there are fifty sets of laws, so just because you might be familiar with the laws of one State does not mean you know about the laws of another (Sure, all of the State laws are very similar, but there are nuanced differences between the States that it is important to know).
The primary purpose for using an entity to operate a business and to control assets is that it places a "shield" between your personal assets and the business assets. A business operating under the protective shield of a properly structured entity is still liable for any claims against the business, but only to the extent of the assets actually owned by the business. If the business does not have enough assets to satisfy a claim the assets of the individual owners CANNOT be used to satisfy the claims. That said, such protection only applies if the entity is in good standing with the State (all of the proper paperwork, records, filings, fees, etc., are in order) and the owners have operated in good faith and not operated fraudulently, or illegally. In cases where the business was not operated properly and in compliance with applicable law a court can "pierce the veil" of protection and go after the individual assets of the owner(s).
By properly utilizing business entities to own assets and operate businesses you can effectively protect your personal assets from any business claims that may arise. Speak with an attorney if you have not done so already with respect to the pro's and con's of different structures and how they may impact your business. If you have already decided on the type of structure that's best for you and your business you can find the necessary forms for all fifty states here (look for the link to the "Legal Forms Library).
John Michailidis is a recognized business consultant, attorney, success coach, and author of the WealthLoopTM Series of books and training materials for aspiring entrepreneurs and investors. Please use the contact form to get in touch with him regarding personal coaching and business consulting. Download the FREE, 40-page, .pdf "Wealth Creation Manual."
"Jim Cramer Blows a Head Gasket" — Does His Humanity Bespeak a Deeper Wisdom?
August 18, 2007
Have you seen this? It's shocking. It's disquieting. It's a truth that MUST be heard by you now. See Jim Cramer's humanity, wisdom, and insight laid bare. Take heed of his lone call for sanity. After you watch the "meltdown" watch his comments on the furor his comments sparked.
John Michailidis is a recognized business consultant, attorney, success coach, and author of the WealthLoopTM Series of books and training materials for aspiring entrepreneurs and investors. Please use the contact form to get in touch with him regarding personal coaching and business consulting. Download the FREE, 40-page, .pdf "Wealth Creation Manual."
