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Consider Bankruptcy

Posted by on Jun 12, 2019 in Business | 0 comments

Have you ever looked at your bank account and truly wondered how you would make it to the next payday? If not, then congrats! You are more fortunate than most Americans.

Thankfully, the rate of poverty has decreased in most communities in the past few decades. However, it is very easy to look around our economy and feel as if the system is set up against you, not in your best interests.

Some people turn to blame others. Throughout history, other groups have been blamed for the economic troubles of others. While politics can be complex, and the reasons for particular economic troubles surely cannot be addressed in one blog post, it can be said pretty simply that there is no single group responsible for all of your financial troubles.

Nor is it completely your fault! Often, it seems like discussing economics leads to an odd feedback loop in which your options are:

  • Blame all of your money problems on a group or issue (i.e. immigration)
  • If not this, then blame all of your money problems on your own actions; degrade and feel bad about yourself in the process

Well, I am here to discuss an option to get out of this cycle and to get out of this particular rut: bankruptcy.

Despite disagreements about finances being one of the biggest contributors to divorce in America, and despite the physical and emotional toll that stressing about money can contribute to your life, many people shy away from declaring bankruptcy.

Maybe bankruptcy has a bad reputation because it is associated with either failing businesses or truly broke people. However, more people claim bankruptcy than you would imagine. According to Debt.org, just one US state (California) had over 200,000 bankruptcy filings in 2011!

Do not let the reputation of bankruptcy dissuade you from even exploring the financial tool as an option. I would never advise you to lie on financial documents, so you might be curious why bankruptcy could be an option for someone who is not on their very last dollar.

Well, according to the expert Central Texas Bankruptcy Attorney Erin Shank and her team, bankruptcy could be declared for lots of reasons. Do not wait until you are at your last $20 to begin exploring your options to get a helping hand and begin anew.

Many types of debts can be covered under bankruptcy. The one exception, famously, is student loan debt. However, being able to deal with different types of debt — including money you might owe for past medical treatments — could help you better deal with student loans.

Despite being a great tool to use in desperate financial times, declaring bankruptcy shouldn’t be taken lightly. To begin the process, you have to sign important documents under the penalty of perjury. As a result, it is in your best interest to speak with a bankruptcy lawyer who can clarify any questions you might have about the process.

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Types of Corporation

Posted by on Oct 18, 2016 in Business | 0 comments

A Corporation is a type or business entity wherein a group of shareholders assumes an existence that is independent of the individual shareholders, making this group’s powers and liabilities, therefore, distinct from those of its members.

A corporation limits the liability of shareholders; thus, even if is held liable for damages in a civil suit, the most shareholders can lose would be their investment in the stock. Personal properties and assets of shareholder are not on the line for corporate liabilities.

A corporation has four main types: C Corporation; S Corporation; Limited Liability Company (LLC); and, Nonprofit Organization.

  • C Corporation. Under the U.S. federal income tax law, a C corporation is a type of corporate business entity that is taxed separately from its owners. The number of shareholders in a C corporation, whether foreign or domestic, is never limited.
  • S Corporation. An S corporation is a special type of corporate business format that was formed through an IRS tax election. Under the S corporation set up, company income, deductions, and tax credits flow through to shareholder, thus, income is taxed at the level of the shareholder instead of at the corporate level. While an S corporation limits the financial liability of a shareholder, this may not apply in litigations due to workplace incident.
  • Limited Liability Company (LLC). An LLC combines the elements of a partnership and a corporation. While the company’s existence is separate from its members, allowing it to exist even if one or more members withdraw, all business profits and losses are reported on members’ personal tax return. LLC members also enjoy limited liability in the event that the company incurs huge debts or goes bankrupt. This means that members’ properties and assets of are protected from being taken by creditors in payment of company debts.
  • Nonprofit Organization. This type of corporate business entity uses surplus revenues in achieving its goals rather than distributing them as profit or dividends.

As the firm, Russo, Russo & Slania, P.C., explains in the website, establishing a new company is an exciting move, however all decisions can have a substantial impact on the future of the business. From a legal standpoint, there are a range of different choices that must be made which can profoundly influence the course of a company’s development and progress. Advice from a qualified legal professional can prove invaluable, especially for entrepreneurs.

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