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Alexander Duie Pyle Latta

Alexander Latta’s Answers

24 total

  • Will our rental property asset automatically transfer to an LLC?

    I want to form an LLC as a family partnership that presently holds the mortgage on a beach rental property. I have been told the house/land asset will transfer automatically with the registration of the owners in a PA LLC. I have checked and the m...

    Alexander’s Answer

    It does not sound like there will be an automatic transfer. It will probably require a deed to transfer the property from the name of the individuals who own it to the LLC. You also might want to check the mortgage, not just the note, to make sure that there are no prohibitions on transferring the property into an entity. Furthermore, especially if you are concerned about tax implications, you should consult with a lawyer, since your scenario raises the possibility of realty transfer tax. Realty transfer tax can be imposed even on transfers of real estate from individual LLC members to the LLC.

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  • What is the standard cost to incorporate a 501 c3 in Pennsylvania.

    If I wanted to create a 501 C3 non profit organization which are required to incorporate by Pennsylvania State law what would be the cost in legal fees and taxes?

    Alexander’s Answer

    The filings fees and costs alone are likely over $1,000. The filing fee to incorporate is $125, the costs to advertise the formation of the corporation vary, but will likely be $100-$200. The filing fee to apply to the IRS for tax exemption will $750, except for small organizations for which it is $300.

    As for legal fees, they vary depending on the type of organization that you want to form, the complexity of its governing documents, and how evident it is that the organization warrants exemption. They will likely be a few thousand dollars.

    All-in-all, I'd estimate ~$5,000 to $7,000 is typical from start to finish. If it's really simple it could be less, if it's complex, it could be significantly more.

    Be careful with doing it yourself. There are things that, if they aren't done correctly in the initial incorporation papers, will prevent you from getting tax-exemption without additional work and costs. I find it's usually more expensive when clients try to do it themselves and then come to me, than if they come to me from the start.

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  • Does firing someone invalidate non-compete agreement in PA

    What employer actions will invalidate a non-compete agreement in Pennsylvania?

    Alexander’s Answer

    It depends on what the non-compete agreement says, but it will not necessarily invalidate it. That said, it might make a court less likely to enforce the non-compete. Pennsylvania courts disfavor noncompete agreements and will only enforce them to protect the legitimate interests of an employer. There is some Pennsylvania case law where courts have not enforced noncompetes against employees who were fired for performance reasons since the courts determined that the employer did not need the noncompete to protect their interests against the poorly performing attorney.

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  • My contractor took the deposit and never started the work

    I signed a contract with a contractor who agreed to start work on the date specified in the contract and took deposit for the materials. This was about a month ago and work has not started. The check was cashed and the contractor has said several ...

    Alexander’s Answer

    You may have several options. If you are a consumer, you may have the protection of consumer protection laws such as the Pennsylvania Unfair Trade Practices and Consumer Protection Law and the Home Improvement Consumer Protection Act ("HICPA").

    Assuming the contract was for work at your residence and considered a "home improvement", you may be able to avail yourself of the protections of HICPA. HICPA applies to "Home Improvement Contracts". It requires contractors to register with the attorney general (is your registered?), requires the use of written contracts for home improvement of more than a few hundred dollars, limits the amount of a deposit a contractor can require, and prohibits taking a deposit (other than for special order materials) before a contract is signed. It also provides remedies for contractors who don't maintain start/end dates that they agree to in the contract. Additionally, home improvement contracts must comply with HICPA's strict requirements, and if they don't, the homeowner can void the contract. HICPA is enforced by the attorney general, but you can file lawsuits for breaches of HICPA as well. Check out the attorney general's site for more info:

    Additionally, fraudulent or deceptive practices against consumers are prohibited by the Pennsylvania Unfair Trade Practices and Consumer Protection Law . You may have remedies under this law as well.

    If you are not a consumer or the work was not a home improvement, your remedies are likely more contractual in nature. If you can't persuade the contractor to return your deposit, this means you'll likely have to commence a lawsuit to seek the return of your deposit.

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