Codispoti Consulting

04/25/2023

As a small business owner, you may feel as if you’re facing the world alone at times. Unlike a large company would, I’m willing to bet you don't have a team of lawyers or an in-house general counsel to support you as you navigate the complexities of running a business. But just because you don't have the budget of a big business, doesn't mean you don't have the same challenges or need the same level of support that large companies enjoy.

As a small business owner, you may feel as if you’re facing the world alone at times. Unlike a large company would, I’m willing to bet you don't have a team of lawyers or an in-house general counsel to support you as you navigate the complexities of running a business. But just because you don't...

02/23/2023

Unless your business generates significant revenue—and will continue to do so upon your death—that income might not be enough to support the ongoing operation after your death, and financially provide for your family. By purchasing and properly structuring your life insurance, you can offer your family, team, and clients a financial safety net, while your loved ones finalize your affairs and your successor assumes control of the company.
If your business has multiple owners, you can pair life insurance policies on each partner with your buy-sell agreement. By doing so, your remaining partners can buy out your shares at a previously agreed-upon price, and the life insurance can help pay for the buyout, without leaving the business bankrupt.

02/13/2023

Regardless of the industry you are in, the reality of being a business owner is that you open yourself up to a number of unique risks that most people don’t have to worry about—and the more successful your business is, the more risks you face.

https://codispoticonsulting.com/2023/02/4-fundamental-asset-protection-vehicles-for-business-owners/

02/01/2023

Paying your children—whether they’re tweens, teens, or young adults—to work for your company is one of the greatest advantages of running a family business. By hiring your kids, you can help them develop a strong work ethic, give them experience managing money, and jumpstart their ability to save for their future, all while keeping more wealth in your family.

https://codispoticonsulting.com/2023/02/the-benefits-of-employing-your-kids/

01/20/2022

If your business is set up as an S or C corporation, you don’t qualify for the payroll tax exemption. However, there are ways to get around this restriction by using some creative—yet 100% legal—tax strategies.

For example, instead of paying your kids directly from your corporation, you can create a family management company and pay them from that business. By setting up this new company as a sole proprietorship separate from your primary business and paying your children from it, you won’t have to withhold payroll taxes.

If you own an S or C corporation, meet with us, your Family Business Lawyer™ to learn more about the different workarounds that allow you to pay your kids in your business and still save on your taxes.

12/10/2021

You may be wondering why so many business owners choose January 1 as the start date for their company. Surely, it’s not because everyone has the same New Year’s resolution, right?

You may be wondering why so many business owners choose January 1 as the start date for their company. Surely, it’s not because everyone has the same New Year’s resolution, right?  The fact is, there are a number of distinct advantages to launching your Limited Liability Company (LLC) at the be...

11/02/2021

Without the guidance and support of trusted legal counsel, you are likely not aware of all the ways your business is leaking money, putting yourself and your family at risk, and possibly limiting the positive impact you have on the lives of your clients.

Beyond those potential issues, if you are handling all of your company’s legal, insurance, financial, and tax decisions yourself, you’ll likely get overwhelmed by all the necessary pieces required to run a business on a daily basis—crunching numbers, negotiating contracts, dealing with insurance, and preparing your taxes—and something will suffer.

Either you won’t be able to focus on the parts of your business that you truly love—the products, client services, or the sales and marketing—or you will overlook the key legal, insurance, financial, and tax matters affecting your company and this will negatively impact your operation. Does this sound familiar?

09/17/2021

One of the biggest benefits of running a family business is being able to employ your minor children. By hiring your kids, you have the opportunity to teach them the value of hard work, give them experience managing money, and support them to save for their future.

In return, you get employees who have a built-in sense of commitment, teamwork, and loyalty that can’t be found anywhere else. This sense of loyalty and dedication is why so many business owners like to claim that their team is “just like family.”

On top of that, employing your minor children also comes with some substantial tax-saving benefits. And with the passage of the Tax Cuts and Jobs Act (TCJA) in 2017, those benefits are now better than ever.

Do your kids help around your business?

One of the biggest benefits of running a family business is being able to employ your minor children. By hiring your kids, you have the opportunity to teach them the value of hard work, give them experience managing money, and support them to save for their future. In return, you get employees who h...