The beautiful beachfront city of Santa Monica is located in western Los Angeles County, just north of Venice. The city, named for the Christian Saint Monica, has a population of nearly 90,000. With its pleasant climate, Santa Monica has been a famed resort town with a revitalized downtown, significant job growth and increased tourism. In fact, the Santa Monica Pier remains a popular and iconic vacation destination.
An exciting venue for professionals
With its proximity to Los Angeles International Airport and downtown Los Angeles, Santa Monica is also an ideal venue for professionals of all areas of business to meet, have corporate gatherings or other special events. The top-notch hotels in Santa Monica and the vast beach activities and luxurious amenities create a charming and relaxing atmosphere. The Southern California seaside community, with its “sophistication and cutting-edge business amenities” make Santa Monica the best choice for next business meeting or convention.
Why people love to visit Santa Monica
Santa Monica, California actually has much more to offer than its beaches and year round tropical weather. Its proximity to the greater Los Angeles area makes Santa Monica the perfect spot for business travelers and vacationers. Santa Monica is a walkable 8.3 square miles, 3.5-miles of coastline with a laid-back beach town atmosphere and big city sophistication. There are 8 neighborhoods offering wide diversity of shopping, dining, entertainment, outdoor recreation and easily accessible public transportation.
Family-Owned Business Estate Planning in California
When estate planning is done the right way, families can protect their assets from taxation, while controlling how and when those assets are distributed. In doing so, you can provide a financial foundation for their loved ones that will remain stable long after you are gone. This type of advance planning is especially important for small and family-owned businesses in California. How your business is organized will have a substantial effect on how that business is taxed and administered after your death.
Asset Protection Planning Should Start Before Claims Arise
The most effective asset protection plans need to be put in place long before a creditors claim or liability arises. Transactions that occur after a claim has arisen are likely to be considered violations of “fraudulent transfer” laws. Another important reason for early planning is that most people don’t understand when the claim or liability actually arises. Once you have received a demand for payment or been served with a lawsuit, it is too late.
It is a common misconception that the only consequence of late planning is the voiding of what is considered a fraudulent transfer. Instead, both the debtor and the person who aided in the fraudulent transfer can be held liable for attorney fees incurred by the creditor involved. The debtor may also lose any chance of discharging that particular debt in bankruptcy.
Asset protection planning should never be considered a substitute for liability or professional insurance. It is meant to only supplement such insurance. Asset protection plans do not deter lawsuits, nor do they pay for legal fees required to defend against a lawsuit. If you are sued, your insurance company will be responsible for defending the lawsuit, as well as paying to settle.
The general rule is, trusts are for personal assets and business entities are for business assets. This means that various business entities, such as corporations, partnerships and limited liability corporations, are meant to be vehicles for business assets only. Whereas personal assets should be placed in some form of trust.
Business Planning for California Businesses
Business formation and business succession planning can be complicated because of the different tax issues involved, especially with family-owned businesses. A Limited Liability Company (LLC) is currently the preferred business entity. LLCs are generally flexible in tax planning and simple to administer. They provide legitimate asset protection and a built-in plan for succession of interest after the business owner retires or dies. At the Schomer Law Group, we will assist you in determining the best entity depending on your circumstances and draft customized agreements to meet your specific needs, including operating agreements and buy-sell agreements.
The Schomer Law Group can help you decide what will happen to your business upon your retirement, death, or disability. Unfortunately, many business owners do not plan for how they will leave their business. Without a complete plan, your family may be forced to sell the business or the business assets after your death. If you have questions regarding small business planning or any other estate planning needs, please contact the Schomer Law Group for a consultation, either online or by calling us at (310) 337-7696.