| Copyright (c) 2007 Juli Walsh
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| | Corporation and Limited Liability Company
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| The mere thought of an audit or a lawsuit
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| | structures do allow you to separate your
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| strikes abject terror in the hearts of
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| | business and your personal assets and
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| most small business owners. No one wants
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| | offer liability protection. The same is
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| to find their business the target of an
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| | true of Limited Liability Partnership.
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| IRS audit - in fact, most of us shudder
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| | You have worked hard for your home and
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| at the mere mention of the phrase.
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| | your possessions, not to mention your
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| Lawsuits are also frightening prospects.
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| | savings and retirement plans and
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| Yet small businesses and entrepreneurs
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| | investments. Don't risk losing
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| frequently leave themselves open to
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| | everything because your company isn't
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| failing audits and losing lawsuits by not
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| | structured correctly.
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| taking steps to prepare or plan for them.
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| | Scary Fact #3: Many small businesses and
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| Scary Fact #1: A study released in March
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| | entrepreneurs fail to properly and
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| of 2007 estimated that U.S. citizens pay
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| | adequately document decisions, agreements
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| about $865 billion every year in expenses
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| | and business activities. This failure
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| related to lawsuits. A significant
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| | puts the entire business at risk. You
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| amount of these lawsuits are brought
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| | must record business decisions and
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| against doctors and other professionals.
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| | summarize them in your Annual Meeting.
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| But a sizeable amount of this cost is
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| | If you don't, your notes will not stand
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| tied to suits brought against small
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| | up in court.
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| businesses.
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| | Every agreement made by a business needs
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| Small businesses and entrepreneurs are
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| | to meet three criteria:
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| particularly susceptible to lawsuits
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| | 1. It should be in writing.
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| because they are often so focused on
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| | 2. It should clearly state how disputes
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| starting and growing the business - often
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| | will be resolved.
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| with a minimal staff - that they just
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| | 3. It should be reviewed by an attorney
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| don't get around to doing the paperwork
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| | before it is signed.
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| needed to protect their businesses and
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| | Finally, ensure that every product you
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| their personal assets. Further, many
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| | release and every property you own and
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| believe that a business license and
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| | use for business carries appropriate
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| articles or incorporation, articles of
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| | warnings, disclaimers, and the like. No
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| organization or partnership agreements
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| | matter how much we might like to think
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| are the only documents they need in order
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| | otherwise, we live in a society in which
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| to do business.
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| | people are more than ready to take others
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| Depending upon the state in which your
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| | to court if they think they will gain
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| business is located, this may be
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| | financially. Once a lawsuit is brought,
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| sufficient to allow you to do business.
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| | your legal fees begin to accumulate.
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| But it is woefully inadequate to protect
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| | Even if you win, you will incur
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| your business.
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| | significant financial loss.
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| Scary Fact #2: If you didn't form and
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| | Kari VanNoy and Juli Walsh are both
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| structure your business correctly, your
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| | paralegals. They have spent the last ten
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| personal assets could be at risk in the
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| | years building their mission to educate
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| event of an audit or a lawsuit.
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| | and protect small business owners. They
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| Incorporation is a great thing, as is
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| | created Just A Minute, LLC to assist busy
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| formation of a partnership. Without
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| | entrepreneurs and small business owners
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| proper structure and continued
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| | with their corporate and company minutes
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| documentation, the business is
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| | and resolutions to keep their company
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| susceptible to disallowed deductions and
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| | assets safe, secure and protected. To
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| personal assets are well within the reach
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| | learn more about how they can help with
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| of those who bring lawsuits.
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| | Annual Meeting planning and
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| Business structures cannot prevent audits
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| | documentation, visit .
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| or lawsuits. But S Corporation or C
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