This program will explore the essentials of managing Single Member LLCs (SMLLCs) effectively. Learn how to draft clear and protective operating agreements that boost tax efficiency and safeguard assets. It will provide a thorough analysis of smart tax planning strategies and practical methods for protecting your assets from potential risks. Participants will also explore how to avoid common pitfalls that could lead to personal liability by maintaining a proper separation between personal and business assets.

Session I – Asset Protection and Avoiding the Alter Ego Danger – Mike Gorby

In this session, we will discuss the importance of asset protection and liability protection for business owners and explore the tools and strategies available to safeguard your personal and business assets. We will discuss the role of Charging Orders in protecting LLC assets and highlight bankruptcy issues unique to SMLLCs. We will examine the differences between asset protection versus liability protection and discuss the role of insurance and other protection mechanisms. Additionally, we will address the critical issue of maintaining proper separation between personal and business assets to avoid the "alter ego" or “veil-piercing” danger, which can put your assets at risk. By the end of this session, you will have a clear understanding of how to protect your assets and minimize your risk exposure.

Key topics to be discussed:

• Asset protection vs liability protection
• Insurance and other tools for protection
• Maintaining proper separation between personal and business assets

Session II – How to Draft SMLLC Operating Agreements – Jeff Cunningham

In this session, we will delve into the essential components of drafting a Single-Member Limited Liability Company (SMLLC) operating agreement that is both tax-compliant and protective of your assets. We will explore the key elements that must be included to ensure your agreement is effective and compliant with regulatory requirements. By the end of this session, you will have a clear understanding of how to draft an operating agreement that safeguards your business and personal assets and sets your SMLLC up for long-term success.

Key topics to be discussed:

• Key components
• Make sure your agreement is tax-compliant and protects your assets
• Ensuring compliance and effectiveness

Session III – Tax Planning – Jeff Cunningham

This session will focus on the critical aspects of tax planning for business owners, including classification options, deductions, and credits. We will examine the tax implications of various business decisions, such as entity selection, income allocation, and expense reporting. By understanding the tax planning strategies and opportunities available, you will be able to minimize your tax liability, maximize your cash flow, and make informed decisions that drive business growth.

Key topics to be discussed:

• Classification options
• Deductions and credits
• Tax implications of various business decisions

Closed-captioning available