A couple of weeks ago, based on the 2010 case of Olmstead v. Federal Trade Commission, Florida Legislature concluded that multi-member LLCs are protected against creditors seeking to seize ownership interest in the LLC.  They clearly expressed their point by rewriting Florida Statute, §608.433, to match their intent.  As a result, Florida is one of only seven states to determine that the specific charging order of creditors is the only means of recovery against an LLC.

This recent Florida ruling just adds to the list of advantages of choosing an LLC over a corporation in the state of Florida.  In order to be better protected, a small business owner should be familiar with these advantages.

First, assets are much better protected through a multi-member limited liability company than through a corporation. Under a corporation, if an individual owner of a company, even with multiple owners, is sued, the creditor can seize shares of the corporation that form the entire ownership of the company.  Conversely, through a limited liability company, the creditor cannot seize those shares of ownership.

Second, there is tax advantage to using multi-member LLCs compared to corporations.  The owners of an LLC get to choose how their company will be taxed dependent on what form they decide to fill out.  The company can be taxed as an “S” or “C” corporation and, if there are multiple owners in the LLC, it will be taxed as a partnership by default.

Third, a multi-member LLC has an operating agreement that provides additional asset protection for business owners.  Under the operating agreement, which is regulations for the LLC, the owner can include a stipulation that can scare off creditors from even considering a charging order by essentially assuring penalty against them if they do so.

Fourth, multi-member LLCs are also beneficial when estate planning.  For example, if one was to give the gift of their partial interest of a company to a successor, an LLC allows the giver to remain in control of the company even though he or she no longer owns their share.  Furthermore, an owner of an LLC can transfer the interest of the business to the successor while still maintaining control of the operations for years to come while at the same time taking advantage of a $5 million dollar exemption on gift tax, if done before 2013.

Fifth, the transfer from an already existing corporation to a multi-member LLC is an easy and tax free transition. The process of the conversion is statutory based on Florida Law, which makes the process very efficient. Once the corporation is made into an LLC, the company is viewed as if it has always been an LLC since the time the corporation was formed.  Furthermore, after the conversion, if the company has the same owners with the same share proportions as prior to the conversion and those owners choose to have the LLC taxed in the same form that the corporation was taxed, there will be no additional taxation and no changes to how the LLC will be taxed.

In conclusion, unless a business is publicly owned or plans to go public, all business owners should be operating an LLC.  If you own a small business as a corporation and have no plans to go public, we urge you to convert to an LLC for all the reasons mentioned.  Contact a qualified estate and asset protection attorney as soon as possible to assist you.

For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

On Friday, July 8^th 2011, NASA launched its final space shuttle, Atlantis, into orbit from Kennedy Space Center in Cape Canaveral, FL., closing the book on a 30 year stint of space travel.  The purpose of this final mission was to bring a care package of parts and supplies to an International Space Station.  The mission was Atlantis’s 33^rd flight and the 135^th shuttle launch of NASA.

NASA is expected to resume shuttle orbit sometime in the future, but not for many years from now.  The purpose of the stoppage is to save money that would have been spent on launches into the earth’s orbit to instead spend on the research and development of shuttles that would allow the US to explore the planet Mars and its moons.  This sort of advancement in space travel is expected to take many years.  As of right now, NASA has projected into the mid-2030’s as a tentative timetable for Mars exploration.

Maybe we will discover life outside of planet earth.  “The Red Planet” seems like a good place to start looking.  Maybe one-day we will find and say with certainty that we are not alone in this universe.  Who knows what aliens could look like?  It seems like the most common portrayal of aliens always imagines them with guitar pic shaped heads and large black eyes.  I, personally, imagine they would look like “E.T.” from the 1980’s movie.

This hold on NASA space travel will allow the US and the rest of the world to plan for the further exploration of the unlimited and unknown in space.  NASA is taking the proper steps to plan for the future and for the unknown in space.  Like NASA, you too should plan for your future and for the unknown in life.  The best way to do this is by setting up a customized estate plan right for you.

E.T. says, “Phone home.” We say, “Phone a qualified estate attorney.”

For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

On July 4^th, 1916, four immigrants on Coney Island were having an argument debating who was the most patriotic.  They decided to settle the argument by having an eating competition at Nathan’s Famous Hot Dogs stand.  That eating competition became a yearly tradition that has continued to grow in popularity over the past 96 years.  It developed into what is recognized today as one Independence Day’s favorite pastimes – The Nathan’s Hot Dog Eating Competition.  Three days ago, world-renowned competitive eater, Joey Chestnut, won his fifth consecutive Nathan’s Hot Dog Competition, eating 62 hot dogs in 12 minutes.  That 62 spot was enough to win the 2011 mustard-colored champion belt.  However, it was not enough to break his all-time personal best of 68 hot dogs, which is also the world record for most hot dogs in 12 minutes.

Watching those competitive eaters scarf down two or three hot dogs down at a time can certainly be gut wrenching. But as I watched, my stomach turned knowing that most likely, at least one of those competitive eaters on stage had not adequately planned their estate.  You would think in a career like competitive eating, where individuals shove as much food into their systems as possible; there is a concern for choking, stomach or esophagus rupture, or some other freak accident that could result in a tragic death.  For example, Chestnut has won countless eating competitions for prize money, aside from the five consecutive Nathan’s competition victories, which earned him a total of $50,000.  Does he have that prize money and other valuable assets protected in a irrevocable trust in case of a deadly choking fit?

You may not be able to eat 68 hot dogs in 12 minutes.  You may not eat competitively.  But do not think just because you are a “low risk” eater that choking on your food is an implausible occurrence.  A freak accident can happen to anyone.   It is best to plan for the future of your estate as soon as possible to assure that your loved ones are taken care of.  Speak to a qualified estate attorney today to discuss an estate plan that is right for you and your family.

For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

Everyone can agree that the Declaration of Independence was an important document to sign. Without it, we could not benefit from the sacrifices our forefathers made to secure our welfare and freedom. Much in the same way, you make sacrifices and work hard throughout your life. It is crucial for your family’s future and well being that you establish and sign your Estate Planning documents. You probably won’t be around for 235 years, but if you plan well your legacy will.

For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

You are walking through a crowded public place -a shopping mall let’s say. At that moment on that random day, anything could be going on in your life – let’s say you are running errands during your lunch break, have recently closed escrow on a new home, and have dinner with the in-laws that evening.  The point is you are minding your own business and living your life.

Suddenly, completely unexpected and interrupting your life, organized chaos breaks out in front of you.  A large number of people, who appeared to be ordinary pedestrians with ordinary daily concerns, synchronize and start performing a bizarre act in unison – I don’t know, let’s say they all start playing Kazoos to the tune of Eddie Murphy’s “Party all the time,” while each tossing out handfuls of bouncy balls on to the ground.

In other words, you have experienced a flash mob.  A flash mob is one of those occurrences that you have never actually witnessed, but you have seen proof of flash mobs on TV or may even know people who have experienced a flash mob.  You never expect them to happen to you, but you know they occur in everyday life.  And although you never expect to run across a flash mob in your life, one day, unexpectedly and unplanned, it could happen.

That is why I always carry pepper spray, to protect me from a sudden encounter with a group of unruly flash mobsters.  Metaphorically speaking, a flash mob is comparable death, and a can of pepper spray is a lot like an estate plan.  No one ever expects to face death.  It could happen at any moment of any day.  No matter what is going on in your life at that moment, death can interrupt it.  Although a person never expects to die so suddenly, especially when there are so many other things on one’s “To-Do” list, it is best to be prepared with an adequate estate plan to assure asset protection.  Contact a qualified estate attorney to create an estate plan right for your needs and receive a lifetime supply of estate pepper spray to assure your assets are protected.

For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

After a series of defeats in recent years, the movement to legalize same-sex marriage is hoping that its unexpected victory in New York will revive efforts to legalize gay marriage around the nation. The victory on Friday in New York, arguably the nation’s economic and cultural capital, carries enormous symbolic importance for the same-sex-marriage movement. New York is now the sixth and largest state in the country where gay couples will be able to wed legally. In late July, when the New York’s law goes into effect, there will be twice as many  Americans in jurisdictions where same-sex marriage is permitted as there are today.

However, Florida’s outlook for same sex marriage is grim. After the 2008 amendment to the Florida Constitution, both same-sex marriage and civil union have been constitutionally banned in Florida.

Article 1 Section 27 of the Florida Constitution states:

“Marriage defined. Inasmuch as marriage is the legal union of only one man and one woman as husband and wife, no other legal union that is treated as marriage or the substantial equivalent thereof shall be valid or recognized.”

Because the law in Florida considers that there is no formal relationship between members of the same sex and unmarried couples, Estate Planning is particularly important. Same sex Couples in Florida have tools at their disposal to plan for the future, among these are Domestic Partnership Agreements. It is equally important to specify your wishes for medical care and elect your healthcare surrogate. Without these documents the hospital must keep you alive by any means necessary, no matter the cost or true desire. Provide your loved ones as much protection as possible by establishing your estate plan.

For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.