Time to incorporate, questions for specific situation

[vegasmike25]

We are in Nevada.

First off, I know and I plan to have a meeting with our CPA regarding all this but I just want to hear about others opinions and thoughts about how we should proceed. My Dad is 62, I'm 27 years old. We run a web business together and want to incorporate. He wants to "retire" and start taking his social security which means that he cannot make more than $12,000 per year. I've already found out that he can still draw income from the business but that it has to be in the form of a royalty, which are not subject to the social security income limits... I'm fairly certain we are not interested in an LLC because I read in a few places that if the owner of an LLC dies, so does the business entity?.

I also have a sister who does not actively participate in any aspect of the business but we do want her to be included as she is blood. In the event that something were to happen to my Dad and I that someone outside the family doesn't take over our hard work.. Can anyone shed some light or give an opinion on what we should do, and/or ask our CPA at our next meeting? If you require more information, please ask and I'll try to provide as much as I can.

Thanks so much!

 

[seniorjudge]

You've gotten some bad info on LLCs.

But, you should definitely hire a good tax CPA and a business lawyer.

It will be worth your while.

 

[vegasmike25]

Ah really? It seems like I read that on Google Answers when someone was asking about business entities.. Can you point me to correct info online where I can read?

 

[seniorjudge]

Ah really? It seems like I read that on Google Answers when someone was asking about business entities.. Can you point me to correct info online where I can read?

An LLC agreement approved by the SOS in your dry state:


http://www.secinfo.com/dsVS9.5vh.b.htm

 

[vegasmike25]

OK, so you're referring to:

ARTICLE II
DURATION
The period of duration shall be perpetual unless the duration of the
Company is sooner terminated as provided for in the Company's Operating
Agreement.

Well that certainly puts LLC back on the table for consideration, see I learned something so I consider the post worthwhile!

 

[seniorjudge]

Thank you.

AND you are quite wise in asking these questions BEFORE you do anything.

Good luck....

 

[JoshDom1898]

also

Only sole member LLC's terminate upon the sole members death. Multi member LLC's, like the one you'd form, do not.

Also, in AZ law, you can have a sole member LLC survive the death of the sole member if the Operating Agreement provides for a beneficiary with PoA to appoint a new member.

Just food for thought, your state might have something like that. Consult a business attorney.