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Michael Bernard Rover

Michael Rover’s Answers

45 total


  • Corporate dilemma

    I started a company a few years ago in the form of a corporation as a side project. For various reasons I did not have the time to focus on the business. Consequently, I fell into arrears for paying the annual franchise tax. Now I find that my cor...

    Michael’s Answer

    Unless you have completely mishandled the coproration, it is very unlikely that the state will pursue you personally. It is pretty clearly a corporate debt.

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  • Can I file a suit against a business that ruined my laptop after I took it in for a simple repair?

    It has been more than two months after I took in my laptop for a simple repair. The business had said they were going to replace my laptop after they damaged it completely. They keep telling me the same thing everytime I go in to check what the st...

    Michael’s Answer

    Sue them in small claims court--up to $5,000 if one party is a business in California, $7,500 if both parties are individuals. Don't forget to seek all damages such as the cost of recovering and transferring data, etc.

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  • We have 2 DBA & want to combine them into 1 INC & use 3 business names but in case of lawsuit want to be protected under INC

    What if I open INC or LLC and refile DBAs and change the registered owners to my new INC or LLC? DBAs that I have now are registered under my personal name. Thanks!

    Michael’s Answer

    You may do refile the DBAs under a new corporation or LLC with no problem as long as there are not licensing issues with a regulatory authority such as Contractors State License Board, Dept. of Real Estate, etc. You should be aware that all assets of each company under the same corporate umbrella will be available to satisfy any judgment against any of the DBAs. The law sees through the DBAs and treats it as one legal entity because that is what it is. You may want to start this way for economy, then spin off one of the more successful DBAs to its own corp down the road as cash flow permits or requires.

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  • Own a metals/minerals import-export trading business. Expect high profits. LLC, or S-corp? in a business with only one member?

    i own a trading business and (expect to ) earn plenty of commission (lets say above 50,000 dollars per month) should i incorporate as an LLC or an S Corp if I expect to learn more than 100,000 per year I will be the only person operating th...

    Michael’s Answer

    Generally, either and LLC or Corp will prtect you from personal liability for company liabilities. I recommend consulting your tax advisor and having them run a pro forma with your anticipated income as both an LLC and a corp. That will give you an idea of which way you will fare better.

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  • What can I do when creditors violate the automatic stay?

    I filed for ch 7 and the court assured me the notice was sent out to my creditors. However, One creditor continues to harrass me with letters and phone calls day and night after 3 weeks of filing. The court double checked for me and the creditor i...

    Michael’s Answer

    You may gain some leverage by reporting the violation fo the stay to the Chapter 7 Trustee, especially if the creditor is attempting to collect at a higher pro rata share than other similarly situated creditors. If you are represented by bankruptcy counsel, I would definitely recommend a brush-back letter fromyour bankruptcy atorney to the creditor, even if if costs you a few bucks.

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