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Tax Plan Wealth is here to help you fix you focus, fix your financials, and facilitate good decisions. Feel free to schedule a no obligation appointment with me so we can talk about the future of your business.

– Ron Fossum

Set an appointment using the link above, and read Ron’s list of the 14 most common mistakes that pierce the corporate veil and puts all your personal assets at risk!


Month: July 2020

8 Lines of Defense from Lawsuits

Here are 8 Lines of Defense from Lawsuits every business owner should have.

  1. Good Business Practices
    1. Using contracts and proper documentation of services offered AND what’s NOT included in services.
  2. Entity Structure
    1. Sole Prop, Partnership, S or C Corp, LLC.
  3. Entity Compliance
    1. Don’t just meet the minimum requirements.
    2. “Preponderance of the Evidence” criteria.
  4. Insurance
    1. General Liability Insurance, Malpractice or Errors & Omissions Insurance.
  5. Legal Team
    1. Business attorney on retainer.
  6. Anonymity
    1. If they can’t find you or don’t know what you own, they may be discouraged from even trying.
  7. Multiple Entity Structure
    1. Establish an Operating, Parent, Holding, or Lending Company designation.
  8. Trusts
    1. Ownership vs Control.
    2. Revocable vs Irrevocable.
    3. On Shore vs Offshore.

8 Steps in the Lawsuit Process

Here are 8 Steps in the Lawsuit process that every business owner should know.

  1. Analysis by Opposing Counsel
    1. Does an attorney think they have a case they can ARGUE… it doesn’t matter if they can WIN.
  2. Demand Letter from Opposition
    1. Attach a dollar amount or resolution to the claim (i.e.: apology, $$, etc.)
  3. Filing Lawsuit
    1. Only costs $500 to file in most states and the rest is on contingency.
    2. To defend you will have to pay hourly.
    3. This is what is known as legal extortion and why most cases settle.
  4. Discovery
    1. Depositions back and forth.
    2. Sharing of emails, books, documents.
  5. Mediation
    1. Opposing attorneys argue their cases to each other and usually settle.
  6. Trial and Appeals
    1. Only 3% +/- of cases ever get this far.
  7. Judgement
    1. Sole Prop and Partnerships likely attached the judgement to business AND personal assets.
    2. Corporations receive Attachment Order.
    3. LLC’s receive Charging Order.
    4. Even if you win, you may lose!
  8. Collection at Debtors Meeting
    1. Who is in control of when payment is made?
    2. What assets do you have to pay the judgement?
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