You are currently viewing Startups Smarter Plan Business Estate Legacy Show 009

Startups Smarter Plan Business Estate Legacy Show 009

The post Startups Smarter Plan Business Estate Legacy Show 009 first was published on

0:00you’re listening to the listen up show
0:01dart of entrepreneur podcast I’m
0:03Mitchell Chad row your host today on
0:05shows your own your own guy on Friday
0:08we’re actually going to be interviewing
0:10Michael Houlihan and Bonnie Harvey who
0:14actually started barefoot wine and sold
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0:57bought 30 tools to start up the startup
1:00checklist and many other education and
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1:05power of attorney living will and trust
1:08all back at Mitchell Chad Road comm
1:12slash sign up now enjoy the show you
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
7:15is 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
11:02in 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
17:38list at Mitchell Chad Road comm slash
17:40sign up you will get all the full
17:42interview transcripts my ebook 30 tools
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18:07it’s your life we go out with our wrap
18:13up round mitchell chad row comm slash
18:17photos for all your graphic design meet
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18:41Chad wrote calm slash sign up thank you
18:43so much for subscribing to my email list
18:45and providing a written review on iTunes
18:48until next time

The post Startups Smarter Plan Business Estate Legacy Show 009 first was re-published on

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:

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