https://youtu.be/7-WjEdoIpV0
The post Startups Smarter Plan Business Estate Legacy Show 009 first was published on mitchellchadrow.com
0:00you’re listening to the listen up show
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0:03Mitchell Chad row your host today on
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1:15know I’m really excited about today’s
1:17show today’s show is regarding business
1:19planning state planning planning for
1:22your family legacy really kind of
1:25addressing some of the things that we
1:27need to think about when we’re starting
1:29a business and planning our family all
1:32surrounding why does somebody actually
1:35want to start a business and then what
1:37type of business entity should I start
1:39how do I incorporate that into my own
1:42family plan my own family estate plan so
1:45let’s start with talking a little bit
1:48about the business entity that you’re
1:50actually going to start some people when
1:53they start out with their business say
1:55gee I want to have just a sole
1:58proprietorship I don’t want to
1:59incorporate my business I don’t want to
2:01set up an LLC I just want to get moving
2:03I just want to get started I guess
2:05that’s okay if you’re crunched for money
2:08but I think that you might want to
2:10consider incorporating or
2:12setting up an LLC and I’ll tell you why
2:14first of all when you set up a sole
2:16proprietorship really all of your assets
2:19are not credit or protected in other
2:22words what that means is that you know
2:24your personal assets and your business
2:26assets are all sort of together as one
2:29and the reason why people set up
2:31businesses like setting up an S
2:33corporation or an LLC is because they
2:36want to keep their business separate
2:38from their personal stuff and they also
2:41want to be protected god forbid if they
2:44would ever get sued or if someone was
2:46trying to come and take their assets
2:48from them that their personal assets are
2:50kept separately from their business
2:52assets one of the things that I’m going
2:54to create right there at Mitchell
2:56chadroy com is a guide on actually how
2:59to set up an LLC or how to set up a
3:03corporation so that it provides a
3:06step-by-step guide to you so that you
3:09can learn how to do that and setting up
3:12your your business what you want to
3:14always do is you want to keep your
3:16business assets separate from your
3:20personal asset there’s a good reason for
3:22that because your business is really
3:24technically not you you want to make
3:26sure that you’re adhering to all of the
3:29rules and regulations as it relates to
3:32the business and therefore we want to
3:34try to keep things separated our startup
3:37round for all your hosting needs head on
3:39over to Mitchell Chad Road comm slash
3:42hosting Mitchell Chad Road comm flash
3:45hosting for all your web hosting need
3:48when you look at your business assets
3:49you’re going to have all different types
3:51of assets you’re going to have digital
3:52assets for example so what are they well
3:55when your business sets up a Twitter
3:57account when your business sets up a
3:58Pinterest account when your business for
4:00example sets up a Facebook page or a fan
4:03page all of that should actually be
4:05owned by your business it shouldn’t be
4:08actually owned by you personally you’re
4:11going to have your own personal Facebook
4:13account you’re going to have your own
4:14personal Twitter account possibly but
4:17you always want to keep the business
4:19digital assets separate from your
4:22personal asset and you want to treat
4:24them that way as well something
4:26people will purchase real estate in
4:28their business again how is that real
4:30estate titled is it titled in your own
4:32personal name or is it actually titled
4:35in your business name so one of the
4:37things that we do when we start to sit
4:40down and plan out our own family plan is
4:43we want to sort of ask ourselves okay
4:45what kind of assets do I have you know
4:48do I have certainly you have you know
4:51personal property you have items of you
4:54know clothing and jewelry and and
4:56artwork and you have your own personal
4:59books and pictures and photos all of
5:02those things you want to obviously make
5:04sure to get down to the people that you
5:07want to make sure actually have them and
5:10so that’s the importance of having a
5:12will you want to indicate as to who’s
5:14going to get these things your business
5:16is also going to have personal property
5:19and personal items and so how you
5:21actually set up your business who
5:24actually owns your business and how
5:26those business assets get down to the
5:29people that you want to get them that’s
5:31also critical as well
5:32ie it’s so important to make sure to
5:36have a will personally you’re going to
5:38also have a residence or you’re going to
5:40have a vacation home and how those
5:41assets are actually titled so if you’re
5:44married our holiday titled with your
5:47spouse if you’re single you know god
5:49forbid what happens if something happens
5:52to you where does that property go
5:53whether it’s in your business name or
5:55whether it’s in your personal name all
5:57of these kind of things are really
5:59critical in developing your own roadmap
6:02to success as to you know how that’s
6:05going to get passed on to the people
6:07that you want to have that in in helping
6:09you set up a power of attorney if you
6:11become ill or sick or if you’re outside
6:14the United States and your business
6:17needs to conduct a particular thing who
6:19is actually going to be able to do that
6:21for you sign for you on your behalf and
6:24so one of the reasons why you want to
6:26make sure to have a power of attorney in
6:28place is to allow that agent that person
6:31that you give that power to to be able
6:33to conduct business for you from appart
6:36from a business perspective then
6:37separate from that you
6:39so want to make sure that someone can
6:41obviously transact business for your
6:43personal items as well and so that’s the
6:46importance of having a power of attorney
6:47and and I’ve provided that to anybody
6:50who subscribes over at Mitchell Chad
6:52Road comm for free so I think you should
6:54should go over there and certainly you
6:57know check that out as well also when
6:59we’re looking at the type of assets that
7:01you have not only are you going to
7:02create a list of all the various assets
7:05that you have so for example if you have
7:07an investment account that’s an asset
7:10obviously how is that investment asset
7:12titled is it titled and with somebody
7:14else
7:15is it titled or with somebody else is it
7:18just your name on it
7:19is it a probate asset is it a non
7:21probate asset so okay what is a probate
7:25asset well a probate acid is one that’s
7:27titled in such a way that it’s actually
7:30going to come through your will and so
7:32whatever you put in your will that’s
7:34critical in terms of how that asset is
7:37going to get down to those particular
7:40whether it be a family member spouse a
7:43friend and aunt and uncle a grandparent
7:46a parent whether you’re single that’s
7:48going to be critical to have that will
7:50or for example you might have a
7:52retirement account at work 401k did you
7:55set up a beneficiary on that 401k so for
7:58example if you’re married did you name
8:00your spouse or god forbid if something
8:01happens to your spell’s did you name a
8:03child even if you didn’t have a child at
8:05that child under 18 years of age so how
8:07are they going to actually get that
8:09asset so if you’ve named a beneficiary
8:11that would be considered let’s say a
8:14non-probate asset or an asset that’s not
8:16controlled by your will but actually
8:19controlled by the designation that you
8:21provided to that provider in this case
8:24your 401k at work you definitely want to
8:26make sure to go back and find out
8:29whether or not those beneficiary
8:30designations were actually filled out
8:32with whomever you have that that
8:35retirement asset wet these are just
8:37examples but you want to definitely make
8:39a list of everything that you have some
8:41people like I mentioned before have a
8:43home have a resident how is that titled
8:46so for example if you have a home
8:48and it’s titled with your spouse as
8:50tenants by the entireties which is
8:52special to husband and wife then
8:55automatically if one spouse passes it
8:57automatically goes to the other spouse
9:00and and so that’s not controlled by the
9:02will that’s controlled by how the deed
9:05was actually titled
9:06at the time that you made the purchase
9:08of the resident so again when you sit
9:10down with someone to create your will
9:12one of the things that you want to do is
9:15you want to create this list of assets
9:17and you really want to start to be
9:19thinking about it the purpose for this
9:21program today is to sort of get you
9:23thinking about the kind of business that
9:25you want to create so for example some
9:28people set up the sole proprietorship
9:29because they just want to get started
9:31real fast at first blush that might seem
9:33like like a thing to do but you might
9:36want to give it a little bit more
9:37thought and actually creating an LLP or
9:39for example my company virtual cash
9:41incorporated as a subchapter S
9:43corporation where myself my spouse is a
9:46shareholder and at some future point in
9:48time my children will become
9:50shareholders in the company as well and
9:52again that that’s family planning that’s
9:54legacy planning and that’s what I that’s
9:56what I mean when I say legacy family
9:58planning because we’re we’re deciding to
10:00set up these businesses we’re working so
10:02very hard in our businesses and yet
10:05we’re not giving a whole lot of thought
10:06to what’s going on within our family
10:09dynamic what are we trying to achieve
10:10what are we trying to do and that kind
10:13of gets into the life’s purpose
10:14everybody is setting up this business
10:16for a lot of different reasons some one
10:18freedoms on people creative and they
10:20they have a passion for wanting to do
10:22something others are working 9 to 5 for
10:25someone else a want to sort of set
10:27something up on the side so that they
10:29can develop that and then transition to
10:31that others for many many years have
10:33thought about setting up a business just
10:35for whatever reason through fear or
10:37timing or what have you just haven’t
10:39been able to do it you want to give some
10:41thought as to why you’re doing the
10:43business and then how you’re going to
10:45actually transition the business at some
10:47future point in time and again this is a
10:49gradual thing again that’s another
10:51reason why you just want to make sure to
10:53have the will in place and of course the
10:54power of attorney as far as the living
10:56will goes again that kind of goes to
10:59healthcare decisions and so god forbid
11:01if
11:02in a critical state you know you want to
11:04make sure that you provide for an agent
11:07who can make those decisions for you on
11:09your behalf need be and again you’re not
11:11planning out of fear you’re not putting
11:13all of these documents and all these
11:15things in place because you want to go
11:17around being fearful and planning out a
11:19care hopefully love for your family and
11:21that’s probably the reason why you’re
11:23setting up the business in the first
11:25place is to create something whether
11:28you’re creating it for you whether
11:30you’re creating it for your family
11:31whether you’re creating it for other
11:32people whether you want to leave a
11:34legacy or do something good with the
11:36money that you make in your business or
11:38for charities you know you wanna you
11:40want to start to be thinking about these
11:42other things as well and there’s no
11:44reason why you can’t be thinking about
11:47this sooner than later and again you’re
11:49doing it not out of fear I know that you
11:51you hear a lot of people talk and they
11:53say oh you know you need to do this
11:55because you know god forbid if this
11:56happens or whatever I like to plan just
11:58because you know you want to plan early
12:01and you want to plan often and you want
12:03to you want to think about why it is
12:05that you’re doing what it is that you’re
12:07that you’re doing so that you can you
12:08know build your business build your
12:10family plan and your legacy plan and
12:13then really be able to like kind of live
12:15out whatever purpose you want in life
12:17and that’s why we’re sort of setting up
12:19all these things you know everybody has
12:21a different situation so there’s some
12:23people out there that are single they’re
12:25not married they don’t have children but
12:27they do have brothers and sisters or
12:28they may have nieces and nephews and
12:30they want to set up that will for those
12:32purposes or someone’s just getting
12:34married and they’re thinking about
12:36setting up the will and they’re just
12:38starting to set up the business they
12:40don’t know whether or not their spouse
12:41is going to be in the business with them
12:43or not again you want to have some
12:44flexibility so that’s the reason why
12:46some people decide to go with the S
12:49corporation some people decide that
12:51they’re going to be the only business
12:52owner but they want creditor protection
12:54in their business and they want to keep
12:56their business as up or from the
12:57personal assets and that’s the reason
12:59why they set up the LLC now of course as
13:02you set up a separate LLC or a separate
13:05S corporation yes those are going to
13:07need separate tax returns you’re going
13:09to probably have to hire an accountant
13:11or if it’s not very complicated you
13:13might be able to do
13:15on your own we do provide preferred
13:17providers whether they be attorneys or
13:19CPAs right at our website Mitchell Chad
13:21Road comm so you know you’re not going
13:23to be alone we’re going to obviously be
13:25doing this step-by-step and providing
13:27guide on actually how to do this and
13:29I’ve provided some of these documents
13:30for you for free which is a great reason
13:33where and I know that you’ll get quite a
13:35bit out of it I’m actually going to have
13:37a business plan for you I’m going to
13:39show you some examples of LLC documents
13:42and the manager agreements and also the
13:45subchapter S corporation documents and
13:48what is what those entails so you know
13:50you’re not going to be alone if you have
13:52any questions you could always send me
13:53an email there right at the website I’ll
13:55make sure to get back to you within 24
13:58to 48 hours with an answer or I might
14:00actually talk about it on an upcoming
14:02podcast one of the other things that I
14:04wanted to talk to you a little bit about
14:06today is setting up trust you know
14:08there’s a lot of talk of do I really
14:09need a trust and again there’s there’s
14:12something that you can create called a
14:14revocable trust that’s actually not
14:16funded today but at least you have it in
14:18place if you ever wanted to actually
14:21either a fund it or use it at some
14:23future point in time you know I
14:25mentioned about digital assets and one
14:27of the interesting things that’s going
14:28on right now is in your personal life is
14:31that god forbid if something happens to
14:33you you know what happens to your
14:35digital assets so for example if your
14:37family wanted to get access to your
14:38Facebook account or if you have a
14:40LinkedIn account or if you want to
14:42continue on with that you know how does
14:44how would one go about actually having
14:46access to that because Google Facebook
14:49some of these other companies are not
14:51going to just turn over your password
14:53and access to family members and so
14:56that’s another thing that you want to
14:58have a power of attorney or you want to
15:00address in your will god forbid if you
15:01should pass family wants to get access
15:03to those to those items inside your
15:06digital assets so again just something
15:08that you want to be thinking about one
15:09of the reasons why I wanted to have this
15:12important podcast with you is just to
15:14begin the conversation we can’t go into
15:17all of the details because setting up a
15:20will setting up a power of attorney
15:21setting up a living will you know
15:23setting up a trust there’s there several
15:25different things that go into
15:27so each one and so this is to sort of
15:30help you begin the discussion there’s a
15:33lot of good resources back at the
15:35website Mitchel Chad road comm I would
15:37highly recommend you going over there
15:39you know subscribing and just by
15:41subscribing over there you’re going to
15:43get all of these items for free and I’m
15:45also going to be in the next week or two
15:47putting up like I said business plans so
15:50that if you’re thinking about starting a
15:51business you have an idea you want to
15:53start something it’s a way for you to go
15:55over and get some of these resources
15:57it’s really to help and one of the other
15:59things that we talked about today is why
16:01you’re actually setting up this this
16:03business and why you’re working hard why
16:06you want to grow this thing it’s really
16:08possibly for your family whether it be
16:10for you you want to you want to
16:12definitely be thinking about all of
16:14those things so I hope you found this to
16:16be helpful
16:16you could always drop me an email to let
16:19me know if you have any suggestions
16:21certainly I appreciate that as well and
16:23our fastpitch Mitchel Chad Road comm
16:26slash books for books audiobooks guests
16:30recommendations and the books that I
16:32read to start off each day sponsors are
16:36fast pitch my book club recommendations
16:39that get Mitchel Chad Road comm slash
16:41books to see more of my recommendations
16:44and recommendations of our guests just
16:46go to Mitchel Chad Road comm slash books
16:49it’s your number one resource for book
16:51reviews and recommendations next Friday
16:54I’ll be interviewing Michael Houlihan
16:57and Bonnie Harvey who actually started
17:00barefoot winery and sold it to Gallo
17:04winery you know they’re very
17:05inspirational they’re an entrepreneurial
17:08couple they’ve worked very hard and I
17:11know that you’ll really enjoy that also
17:13if you want to get their book barefoot
17:15spirit I would highly recommend you
17:17going to Mitchel Chad Road comm slash
17:19books start your 30-day free trial and
17:23you can get one free audio book in that
17:2630-day trial and I would definitely
17:27recommend that book so I look forward to
17:30our next episode take care everyone bye
17:33in closing let me have for my listeners
17:35help first please subscribe to my email
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18:00[Music]
18:07it’s your life we go out with our wrap
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18:48until next time
The post Startups Smarter Plan Business Estate Legacy Show 009 first was re-published on startupssmarter.com
Choice your Business Entity wisely, know how your assets are titled, whether you have probate or non-probate assets whether you need a beneficiary and the importance of keeping your Business Assets from separate from your Personal Assets. Create your legacy family plan start with a Will, POA, Living Will and Trust.
Browse by Category: Get your estate plan in order: Life Documents -containing a Will, POA, LW, trusts, and other planning forms Starting a Business: Inc, LLC, S Corporation, DBA registration, other business formations, Real Estate forms, Landlord tenant, affidavits, contracts, Pick Your State: