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Craig S. Lair

Craig Lair’s Answers

2 total

  • Dad died can I transfer mineral rights

    My dad died and I am his executor. He has no money to distribute but he left me his mineral rights to land that produces gas. do I have to wait to transfer them over til the will goes through probate?

    Craig’s Answer

    1. Unless you live in a state with a "transfer on death" deed, the answer is likely yes.

    2. Another alternative in many states is that you can use an affidavit or short-form administration if all your father's assets are less than a certain amount (most states that would range from $25,000 to $100,000).

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  • LLC or S Corporation

    should I be an LLC or a SCorporation I would like to know which is better when it comes to income taxes

    Craig’s Answer

    In most states, there is very little difference between the two. Both provide for limited liability and the flexibility to run a business as you see fit.

    Some accountants prefer the LLC because there are no elections that can be inproperly made or little ways of disqualifying yourself from pass through taxation. An S Corporation can become disqualified, for instance, if the shares are transferred to an entity or trust that isn't a qualified shareholder.

    Other accountants and practitioners prefer the S Corporation because it may provide better results as it relates to self-employment taxes. The ability to pay dividends instead of having partnership self-employment income could save social security taxes.

    But, in summary, there is little difference between the two, if they are done correctly.

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