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William Bronchick

William Bronchick’s Answers

44 total

  • Is this real estate fraud, and do I need an attorney?

    I entered into a lease to own contract on 04 April 2014 , trading my house for a down payment . I've paid every month on time . The ...

    William’s Answer

    It isn't necessarily fraud if the seller disclosed that he wasn't the owner at the time of the agreement, but either way it would be a moot point if he can transfer title when you exercise the option. There is no "sale" on a rent to own agreement, so the notice to the assessor is not required (that is for an installment land contract, not a lease/option).

    As for the issue of lease violation and eviction, you'd need an attorney to review the paperwork. You should definitely hire a lawyer to review the documentation and give you advice.

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  • Does corporate book required by law in new york?

    if yes which law section is it! is it provided after forming corporation or i have to buy it my self?

    William’s Answer

    A corporate record book, or more accurately, what's in it, is crucial to your company's survival in an audit or lawsuit. Failure to keep minutes, have resolutions, issue stock, have By Laws, etc can be fatal to your cause.

    Corpkit and Blumberg sell cheap kits, or you can use a $5 binder from an office supply store, and it works just fine. Just make sure you have the necessary documents INSIDE..

    You can find software kits on the Internet that are adequate for corporate forms. Of course, when I say "adequate", its the BARE MINIMUM and will be very generic. If you have "partners" (other shareholders) or are raising capital, it gets tricky and you should have a lawyer draft the documents to make sure you are protected. Don't be pennywise and pound foolish when it comes to legal documents.

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  • I want to start a business selling what I love to make but I don't know what's better a sole or llc

    I'm a single mother I have a decent job and I put some money to the side im ready to open my own business selling what I love to make

    William’s Answer

    The three considerations for this decision are:

    1. Liability - an corporate entity can protect you from personal liability in many cases
    2. Taxes - filing as a corporate entity can save you some taxes if you use it properly
    3. Cost - what is the cost of filing and maintaining an entity

    You immediately assumed LLC, but your CPA may prefer a S corporation. Discuss that with your CPA. A single member (single owner) LLC is taxed the same as a sole proprietor, which is easier than filing a corporate return, but offers no benefits.

    Is there a risk to your customers or the general public from the products you make? Is liability a concern?

    What is the cost in your state to form a company and annual fees to the state (not to mention to a CPA to do your tax return, if one is required)?

    If you do a small amount of business and sell someone that couldn't possibly hurt someone (e.g., selling paintings), I don't see the need for an LLC or other corporate entity.

    However if your business will net (after expenses) $50k or more and/or sells things that could injure people (or has ANY employees), you may consider a corporate entity.

    Also, continuity is a concern. If you die, will your business live on and be inherited by your heirs without you? Will you think of selling your business someday? These are also considerations for forming a corporate entity.

    I would discuss this with a CPA and lawyer before deciding.

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  • Who should my Registered Agent be?

    In filing for an LLC or Corporation I see that I need to specify a registered agent. Some services say it's better to use them for reasons like privacy and reliability, but their reasoning almost seems like scare tactics. What is the best way to go?

    William’s Answer

    A registered office MUST be a physical address, not a PO Box. Some people use a UPS Store address to keep their home address off public records. This is a cheap, viable solution, but could backfire on you if someone tries to serve you at the UPS store, and cannot find you. You could end up with a court ordering service by publication, which you probably won't see, and end up with a default judgment against you (ask me how I know this!).

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  • I need to add two people to my operating agreement of my LLC to write checks, and sign contacts.

    do I redo the agreement and send a copy to the back for their records?

    William’s Answer

    You don't necessarily need to redo your entire operating agreement to add managers. Read it - it may allow you to add a manager by a simple resolution voted by the members. And, you don't necessarily have to call a formal meeting to pass a resolution; you can have every member sign a "unanimous consent in lieu of a meeting" form (assuming, of course, your operating agreement allows this). Further, your operating agreement may allow the Managers to appoint officers (Pres, Secretary, etc) to do some of their tasks, like being a signatory on a bank account.

    Finally, keep in mind that unless your operating agreement says otherwise, technically ANY employee of the LLC may be added as a signatory on the bank account, assuming the bank allows it. However, they usually require a copy of a resolution for anyone to be added on the account.

    If you don't understand any of this paperwork, it is highly advised you seek the advice of a lawyer to draft it. It shouldn't cost you an arm and a leg for this documentation.

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  • My LLC transacts business only over the internet, do I need to register as a foreign LLC in the states where my clients are?

    For example we have a client in NJ, do I need to register as a foreign LLC in NJ?

    William’s Answer

    As a general rule, the state with high income, filing, or franchise tax will make you register faster than those than don't. For example, in my state of Colorado, the Secretary of State says you aren't "doing business" if you don't have employees in the state. In California, if 25% or more of your business income is derived from that state, you are "doing business" and have to pay ENORMOUS franchise tax.

    Depending on where you sell to your customer, you have to register. I'd do some state by state research on foreign registration requirements. Almost every State has a website with this information online.

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  • If there is a contract for deed and it is a commercial property can the cfd be cancelled by the contract holder without probate.

    There is no will. Or does this have to be entered into probate?

    William’s Answer

    I think what you are saying is that if the seller or buyer on the contract dies, can the ESTATE of that party cancel the contract. First the party died with or without a will and the contract was in their name, then only the representative of the estate (with proper authority) has the power to cancel it. That, of course, assume that the contract itself says the death of a party terminate the agreement. Generally, the contract usually states that it inures to the benefit of each parties heirs and assigns, so the estate (and eventually the heirs) inherit the contract in tact and must abide by its terms.

    You should have an attorney who is familiar with both probate and real estate review the matter to determinate your rights and responsibilities.

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  • Is it possible to put an IRA into a living trust?

    Thanks

    William’s Answer

    An IRA has a designated beneficiary or beneficiaries, which already passes their account to your heirs. If that is your reason for using a living trust, its not really necessary. If you name the beneficiary as your living trust, then you may be able to control things better through the instructions in the trust, but there are different tax consequences for doing it this way, which you should speak with your CPA about.

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  • I have started a LLC and are 2 members 50/50. I would like to get rid of the other member?

    I paid for everything that the company has, and he has not paid anything and seems to not be giving much effort and just wants the reward at the end of the day. I have other people in mind that I would love to work with in this industry. Starting ...

    William’s Answer

    If your "partner" (other member) agrees to get out, keep in mind that if you were reporting as a partnership, it will dissolve the partnership for federal income tax purposes. Talk with a CPA about the tax consequences of this event.

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  • I want to form a LLC. I am based on CA but the fees are much lower in other states (ex. DE). Can I file LLC there?

    I know you can with a corp but not sure on an LLC. Is there a common LLC state (similar to DE for C-corps)? Thanks

    William’s Answer

    CA is so tough on this issue, that even if you based your headquarters in another state and all your employees lived out of CA, if 25% or more of your business is to California customers, you are "doing business" in CA and must register and pay that $800 MINIMUM franchise tax!

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