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Robert Wayne Olson

Robert Olson’s Answers

37 total

  • How does a subchapter S corporation handle a receivable from the stockholder when the stockholder files bankruptcy?

    There is an entry on the books of the corporation for a note recievable from the stockholder. The stockholder is filing Chapter 7 bankruptcy and the corporation's receivable will be listed in the bankruptcy filing. Does the corporation just charg...

    Robert’s Answer

    The question was how does the corporation treat the bankruptcy for tax purposes. This is not a bankruptcy question, this is a tax question, best answered by the corporation's CPA. In general, if the Note was given for value, and the Note becomes uncollectable, it is treated as a bad debt, entitling the corporation to a tax deduction. The corporation should also 1099 the shareholder for that "forgiveness of debt," and there may be additional income tax due from the shareholder - but that issue is for the shareholder's CPA to address.

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  • How can I get possession back of my property from tenant in default? Executed a residential lease agreement w/option to purchase

    Tenant breached contract on the following grounds: Consecutive Nonpayment of Rent (4mo+), Failure to obtain homeowner's insurance, Failure to abate public nuisance (clean up yard), Non payment of property taxes,, & also trying to sell the property...

    Robert’s Answer

    You started the process, you need to complete the process. Finish the appeal or you won't get rid of them at all. One side benefit of finishing this up: the money judgment you get finalized against them can be picked up by credit reporting agencies and injure their credit rating.

    IMPORTANT: This answer is made available for educational purposes only. There is no attorney client privilege between you and the attorney responding. This site is not a substitute for competent legal advice from a licensed attorney that specializes in this area in your home state and with whom you have an atttorney client relationship. Also, law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question.

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  • I purchased 2 puppies from another state she refuses to release them as agreed. At what state do I file a law suit mine or hers?

    our agreement was that i was to meet her husband to pick up my 2 puppies.She now refuses to meet with me and has said I need to meet at her house which is 18 hours away. Her local police was sent to her house and she told them she would send me my...

    Robert’s Answer

    If you signed a contract, the contract might state where a lawsuit needs to be brought. Otherwise, the answer depends on where the contract was entered into, and where the contract was to be performed. It sounds like you are on the wrong side of this argument, since she was to deliver the puppies in HER state. There is no harm in filing in small claims court in YOUR state, and let her make the argument that the suit should be in her state. If you serve the lawsuit on her properly, and she doesn't show up, you can register your judgment in HER state and proceed with collection activity.

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  • Is there a way to transfer a tax ID number from sole proprietor to a newly formed corporation in Texas

    question is above

    Robert’s Answer

    I can see why one would want to transfer an FEIN from a sole proprietorship to a corporation or LLC - there are major hassles involved in changing over contracts that rely on the FEIN. One example would be insurance provider contracts for doctors and dentists. New bank accounts also have to be set up.

    See my legal guide (link below) for details on the business details to be completed when converting from a sole proprietorship to a corporation.

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  • What should a psychologist use - LLC, S-Corp, or sole proprietor?

    I am Licensed psychologist and looking to set up a private practice and am not sure if I should create an LLC, or S-Corp or just have a sole proprietor since it will be a very small private practice. thanks

    Robert’s Answer

    You have a professional license. Therefore, in California, you are required to either practice as a sole proprietor or as a professional corporation; an LLC is not permitted.

    A corporation provides two types of benefits over a sole proprietorship - limited liability and tax benefits. These can be significant or negligible, depending on your particular circumstances.

    A professional corporation can be a C corporation or an S corporation. These have different tax benefits, the choice depending on your particular circumstances. You can find a summary of the tax differences between C and S corporations, and corporations vs partnerships (taxed like a sole proprietorship) at my website (see link below).

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  • I'm starting up an LLC. Is it possible to add a partner if he has IRS debt and bad credit?

    I am setting up a corporation (LLC) with 1 other person in the state of New Jersey. That partner has 5 figures of previous unpaid debt (IRS, State Taxes) with bad credit but he is vital to the business. He has an accountant because he has a smalle...

    Robert’s Answer

    I agree with Mr. Martin and his reasoning, in that it's a bad idea to give this person any ownership interest in the LLC, or to give him any access to company funds or valuables. However, if you want to hire him as an employee and pay him a salary or commissions for his work, you could do so, with the typical risks you have with any employee with credit problems.

    If you hire him, you may have other problems with his employment. If the IRS asks to garnish his wages, you will have to comply. Furthermore, I would NOT NOT NOT hire him as an independent contractor, since the IRS may try to get the taxes HE didn't pay on his salary from you, based on a claim he should have been classified as an employee.

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  • Can a Personal Judgment against me effect the assets of my S corporation?

    I established a Michigan based corporation in Augst 2008. I had a judgement entered against me in 2009 for a personal guarantee that I signed for an old business established in 2007 for business rental space in a strip mall. I own 100% of the shar...

    Robert’s Answer

    The judgment creditor could also garnish wages paid to you by the S corporation, or obtain an assignment order for any S corporation distributions payable to you to be paid instead to the creditor.

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  • Can I work 40 hrs/wk and be denied a full-time status with benefits while employee handbook states full-time is 32 hrs or more?

    I was offered a Part-time position working up to 30 hours a week with no benefits. However, my work load has increased and now I am claiming an average of 32-35 hours a week on my time-sheet. The employee handbook states that Full-time employees (...

    Robert’s Answer

    IMPORTANT: This answer is made available for educational purposes only. There is no attorney client privilege between you and the attorney responding. This site is not a substitute for competent legal advice from a licensed attorney that specializes in this area in your home state and with whom you have an attorney client relationship. Also, law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question. That being said -

    Those pesky employee handbooks ...

    Employers are bound by their handbooks. Violating that handbook is a breach of contract, and the employer's actions could also be a breach of Florida law. If you don't want this job, you could contact an employment law attorney to discuss your rights. Know that your employment situation will degenerate quickly if you get "legal" on your employer - which could in turn lead to a possible firing, and a possible wrongful termination action against your employer.

    Pursuing your "legal" rights is not always prudent. Think carefully before you act.

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  • How to add an officer or director to a CA C corporation filing & what are the state requirements?

    We recently filed a C corporation with the CA Sect of State with 3 officers and 2 directors. If we want to add an additional officer or a director to the corporation, what are the requirements and which forms should we use to file these amendment...

    Robert’s Answer

    You need directors and officers to have the authority to sign documents and open a bank account.

    1. Directors must first be appointed by the incorporator; officers can also be appointed in the same way if no initial meeting has been held. Both need to be in writing. Alternatively, the initial meeting of the Board of Directors (or a Unanimous Consent of Directors) can appoint the officers and authorize the issuance of stock (no shareholder meeting can be held until stock is issued, and that can't happen until the Board authorizes it).

    2. The Statement of Information must be filed, once you have an officer that has the authority to sign the document. This process can be done online.

    3. Be sure you complete ALL the corporate steps necessary. If you don't act like a corporation, the IRS (tax problems) and the State of California (tax problems and loss of limited liability) can refuse to treat you like a corporation.

    3. I strongly advise anyone interested in incorporating to complete it through an attorney, since repairing an improperly formed corporation is more expensive than forming that new corporation initially.

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  • Can I sue Kentucky Child Support Services for child support fraud for not doing there job.

    A year and a half ago my then 16yr old daughter moved in with her 19 year boyfriend and his parents. I was paying child support $828 a month to my daughters mother. I notified my case worker told her of the fraud. I was told that if the mother ...

    Robert’s Answer

    Avvo does NOT list Kentucky attorneys, so it is unlikely that you will find an attorney on this site to answer your question.

    There are a few Avvo attorneys that are in other states that are also licensed in Kentucky, but they seem few and far between. Do the following search on Google to find those lawyers:

    site:avvo.com kentucky bar

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