Lynch & Eatman, L.L.P.Lynch & Eatman, L.L.P.2026-06-30T15:22:53Zhttps://www.lyncheatman.com/feed/atom/WordPress/wp-content/uploads/sites/1103385/2019/09/lyncheatman-75x75.jpgOn Behalf of Lynch & Eatman, L.L.P.<![CDATA[How to protect your assets through estate planning]]>https://www.lyncheatman.com/?p=518812024-01-13T03:01:02Z2024-01-13T03:01:02Zestate planning can also significantly minimize tax burdens on your beneficiaries. Through careful structuring, you can optimize tax strategies that help ensure your beneficiaries receive the maximum possible inheritance. Additionally, it can eliminate ambiguity and streamline the process of transferring assets. This not only expedites the distribution of wealth but also minimizes the likelihood of family conflicts.
The basics
A will is one of the most foundational documents in an estate plan, as it outlines your wishes regarding asset distribution. Additionally, setting up trusts can provide added layers of protection, helping ensure a smoother transfer of assets while minimizing tax implications.
Granting power of attorney allows a trusted individual to make healthcare and financial decisions in your stead if you become incapacitated. Choosing the right person for this role is crucial to safeguarding your interests.
Additionally, properly designating beneficiaries on your accounts and insurance policies can ensure that your assets go to the intended recipients without undergoing probate.
Advanced strategies for asset protection
Diversifying your portfolio with tax-efficient investments can help minimize the tax burden on your estate. Consider consulting with a financial advisor to identify investment opportunities that align with your estate planning goals.
Strategic gifting during your lifetime may also help minimize the overall value of your estate, thereby minimizing potential estate taxes. Understanding the current gift tax limits is crucial for effective planning.
Moreover, creating a Family Limited Partnership (FLP) can allow you to maintain control over your assets while gradually transferring ownership to family members.
Lastly, incorporating charitable giving into your estate plan can help you to support causes you believe in and can lead to potential tax benefits for your beneficiaries.
A well-crafted estate plan is an invaluable tool that can protect your assets and better ensure a smooth transition for your loved ones. Aside from implementing the broader strategies outlined above, it can help to collaborate with a legal team that can help you find customized solutions that align with your unique needs.]]>On Behalf of Lynch & Eatman, L.L.P.<![CDATA[The role of liability when planning an acquisition]]>https://www.lyncheatman.com/?p=509342023-05-08T07:38:11Z2023-05-11T07:37:46ZAcquiring a business means taking on its liability
Before committing to a merger or acquisition of any type, owners and executives at a company need to perform their due diligence. Due diligence means looking into a company's operations, assets, liabilities and employee roster to establish what the company is really worth and what risks the business making the purchase might have to take on as part of the transaction.
The delivery of defective products to consumers in the past or the decision by management to ignore complaints about discrimination or harassment could lead to legal and financial liability for the company that makes the purchase. Those in an ownership or executive position at a company in a vulnerable position may not always be forthcoming with the details of prior failures or issues that could lead to financial claims in the future.
Therefore, it is of the utmost importance that those considering an acquisition understand the culture and challenges at the other company to minimize risk. The amount of money involved in a business acquisition and the massive transfer of ownership interests and financial responsibilities that occur make it a very dangerous process, especially for the company doing the purchasing.
Only with proper research and thoughtful consideration can growing organizations minimize the risks involved in expanding via acquisition. Having sound legal guidance while preparing for large business transactions can take some of the risks out of the process.]]>On Behalf of Lynch & Eatman, L.L.P.<![CDATA[Costs to consider before signing a commercial lease]]>https://www.lyncheatman.com/?p=502992021-05-18T23:50:13Z2020-05-13T22:21:34ZMaintenance costs
Your lease needs to give details on each party’s maintenance and repairs responsibilities. It is important to know who is responsible for the cost of replacing major systems and making routine repairs. By making sure the responsibilities of each party are clearly stated, you can anticipate future expenses and avoid later disputes.
Additional charges
Commercial leases typically charge tenants for certain expenses in addition to rent. Be sure your lease states exactly what you will pay for taxes, insurance and common area maintenance. The lease should also clearly state when and where payments are due. Generic terms such as “fees” should be defined to state exactly what you will be paying, and the lease should include clear formulas for any charges or expenses that are to be calculated.
Upfit costs
Many businesses will require substantial alterations to a commercial space in order for that space to meet the specific needs of their business. If your business requires alterations to the space you wish to lease, make sure the lease clearly states (a) which party is responsible for performing and paying for the work, (b) which improvements to the space may be removed at the end of your lease term, and (c) that the plans and specifications for the construction work have been approved by both parties.]]>On Behalf of Lynch & Eatman, L.L.P.<![CDATA[How can you properly handle late payments from tenants?]]>https://www.lyncheatman.com/?p=502682020-05-13T22:17:10Z2020-05-13T22:17:10ZCure Periods
Many commercial leases require that a tenant be given an opportunity to “cure” the non-payment of rent or other charges due under the lease. This gives the tenant a short period of time (typically 5-15 days) to submit payment to the landlord. If the tenant fails to pay the landlord on the due date set forth in the lease, the landlord should send a written notice to the tenant to (i) remind them of their obligation to pay rent and (ii) notify them that the timeline for “curing” the non-payment of rent has begun.
Default
Most commercial leases also provide that if rent is not paid within the “cure” period, then the tenant will be in default of the lease. Once a tenant is in default, the landlord may have specific remedies which often include the right to take legal action to recover the overdue payments. Many leases require that the tenant be given formal written notice before they can be considered to be in default, so it is important to make sure you comply with all notice requirements in your lease.
Mutual Resolution
In most cases, non-payment of rent or other charges can be resolved by discussion between the parties. Two ways landlords often work with tenants are by (i) reaching an agreement to repay the unpaid rent over an extended period of time, or (ii) extending the term of the lease to allow for additional time to repay the overdue rent. In many cases, reaching an agreement with the tenant is the most cost effective and efficient way to address payment issues, since the cost of litigation and potentially finding a new tenant can be expensive and time consuming.]]>On Behalf of Lynch & Eatman, L.L.P.<![CDATA[Commercial Leasing]]>https://www.lyncheatman.com/?p=502762020-04-02T14:00:56Z2020-04-02T14:00:56ZOn Behalf of Lynch & Eatman, L.L.P.<![CDATA[Business financing: Where to start?]]>https://www.lyncheatman.com/?p=502892020-04-02T13:59:21Z2020-04-02T13:51:10ZOn Behalf of Lynch & Eatman, L.L.P.<![CDATA[Perform your due diligence before you buy a business]]>https://www.lyncheatman.com/?p=502712020-02-12T17:00:03Z2020-02-12T17:00:03ZWhat should you consider when you review another business?
Before entering into a formal purchase agreement, perform your due diligence by assessing business records and expansion plans. Some of the matters you would be wise to evaluate include the company’s:
Image
Cash flow
Sales reports
Tax records
Outstanding debts
Contracts
Liabilities
You should also verify the Occupational Safety and Health Administration (OSHA) requirements that pertain to operating that business. Making sure the workplace is safe for employees is another way to protect your interests, as well as your production.
Mentor with someone experienced in purchasing businesses
Most business buyers fail because of a lack of experience. Yet, once you find the right organization to acquire, you need not act independently throughout the purchase process.
You will likely want an attorney and Certified Public Accountant (CPA) to assist with your valuation. Additionally, working with someone who understands the unique challenges of an effective business acquisition can help reduce the chances of experiencing costly difficulties once the transfer of ownership is complete.]]>On Behalf of Lynch & Eatman, L.L.P.<![CDATA[Are you ready to buy a restaurant?]]>https://www.lyncheatman.com/?p=502382019-12-31T11:52:40Z2019-12-23T19:23:38ZSCORE.org breaks down points to ponder about buying a restaurant. Keep these insights in mind as you work out the details of your deal.
Ask why the owner decided to sell
Besides outright asking the owner why she or he decided to sell the restaurant, do some digging on your own. It may be local competition, rising crime rates, the establishment's reputation or a shifting neighborhood that led to the decision to sell.
Investigate liabilities
One thing to know about buying a restaurant rather than opening a new one is that you inherit the restaurant's liabilities. See what outstanding debts or legal issues you may become responsible for as the new owner. You do not want to learn about code violations or lawsuits looming over the restaurant after the ink dries on your business contracts.
Research assets
Something else to learn about before buying a restaurant is the type of cash flow you can expect, which you can do by studying financial statements. Restaurant equipment serves as another type of asset, and the same applies to insurance coverage, business licenses and contracts.
Get to know the employees
Something else you can expect to inherit is employees. Get to know how the current employees work, their schedules, training procedures and money matters. Decide what you may want to keep and what may need either a change or an upgrade.
This information is only intended to educate and should not be interpreted as legal advice.]]>