Business Planning- Choice of Entity Considerations

Whether you’re starting your life-long dream business or you have the next great idea for an internet startup, an important consideration to make is what kind of corporate vehicle is right for your business. Choosing a type of business entity is critical to your business’ success.

The most important consideration when choosing an entity is where the majority of your business’ funding will come. Once the question of funding is clear, choosing a type of entity is simpler. There are four main types of entity to consider.

Sole Proprietor: The first type of entity is sole proprietor. When starting a business, if your company is entirely funded by your savings and income sole proprietorship may be the right choice. In this type of entity your business is treated as your income, rather then as a entirely separate legal entity. Sole proprietorship is simple, fast, and easy, but comes with liability and funding drawbacks.

LLC: A LLC is a Limited Liability Company. A LLC is a popular and new type of entity that often receives funding from friends and family or angel funding (high-risk wealthy investors). LLC’s are flexible and have a personal liability shield, but LLC’s are extraordinarily complex to start.

Partnerships: Partnerships are very similar to sole proprietorship. Partnerships are simply two or more individuals who are in business as co-owners. Partnerships are easy to form and inexpensive, but expose the owners to massive amounts of liability. Partnerships, different from sole proprietorships, are separate legal entities.

Corporations: If you’re looking for major venture capital firm investment, corporations are the way to go. Corporations are companies owned by shareholders who govern the company through bylaws. Corporations are generally more attractive to large investment pools.

To learn more about the different types of entity and how to structure your up-and-coming business, contact Lakeside Law Offices at (414) 716-6380.

Gmail Fights for the Right to Scan your Personal Email

Many of us have Gmail accounts- in fact, it is probably the most used free email service out there.  However, it might be time to question whether it is worth it.

In a Federal Court hearing held on Thursday in San Jose, CA, Google argued for the right to scan peoples email for advertising purposes (noting that it is done by computers and that no humans actual read your emails).  The plaintiffs in the case argue that Google “unlawfully opens up, reads, and acquires the content of people’s private email messages” in violation of California’s privacy laws and federal wiretapping statutes.  You can read the rest of the Washington Post article here.

It turns out that Google is not the only culprit; Yahoo also scans email content for advertising purposes.  You can read the Bloomberg Businessweek article here.

Currently, there are privacy laws and Federal Wiretapping Laws that are in place to protect United States citizens from this kind of invasion of privacy. However, depending on the outcome of this case those laws intending to protect us might not apply to internet usage and content.

Celebrities Who Died Intestate

What do Jimi Hendrix, Sonny Bono, Pablo Picasso, Stieg Larsson, Steve McNair, and Abraham Lincoln have in common?

They all died without a will or estate plan leaving a mess behind for their families to deal with.  In some instances, due to business arrangements and royalty arguments, the disputes can last a long time, like in the case of Jimi Hendrix where the fight over his estate lasted 30 years.  Therefore, while you might not have a celebrity size estate, you owe it to your loved ones to make sure you have a will.

If a person dies without a will or other estate planning documents, the decedent’s property passes according to state law.  If you are interested in what that looks like in Wisconsin, you can check out Chapter 852 of the Wisconsin State Statutes.  Having property left by intestacy usually does not reflect how the decedent would have liked to leave their assets.  This is especially true for the following circumstances:

1.  The most important reason to have a will is if you have minor children.  In this instance, if both parents died, the court would decide who your children’s guardian would be.  If you were lucky this might be the person you would have chosen if you had a will, but it could also be a person you never would have chosen.  Therefore, it is pertinent if you have minor children to have a will.  It does not matter whether your estate is small or large you should have at least a simple will appointing a guardian for your children and a successor guardian in case your first choice is unable to serve.
2. Former Tennessee Titan quarterback, Steve McNair, was shot and killed on July 4, 2009 and did not have a will.  Although McNair was married at the time of his death, there were disputes over his assets since he had four children, two of which were not his spouses.  It is a common misconception that the surviving spouse inherits 100% of their deceased spouse’s separate assets.  If you looked at the Wisconsin Intestate Succession Statutes you would have noticed that if the deceased had children that were not the surviving spouses children then the surviving spouse does not inherit 100%, instead it is split between the surviving spouse and any children.  This can become an issue for the supposed “love child”.  For example, Sonny Bono, the singer and later politician died without an estate plan.  Sonny’s wife Mary was appointed to handle the estate’s affairs including any royalties. However, Cher came forward and made claims against the estate and one person even claimed to be Sonny’s “love child”.
3. In the case of Stieg Larsson, author of “The Girl With The Dragon Tattoo” died in 2004 without a will.  Since he was not married to his partner of 32 years, Eva Gabrielsson, she received nothing and his estate went to Larsson’s father and brother.  Today, more and more people are choosing not to marry, unfortunately without a proper will or estate plan, the assets of the deceased could go to people he or she would never have intended them to go to like an estranged relative.  This is also true for people who never had any children, nor were married when they died.  In this case, the deceased might have liked to leave their assets to a charitable organization or maybe nieces and nephews, instead the assets could end up with a family member they barely new. In cases where an heir cannot be found, the decedent’s assets could go to the state.

In the end, a will or estate plan can save you from committing the above mentioned probate disasters.  Additionally, getting a will in place does not have to be a complicated drawn out process.  Even a simple will is enough to express your intent on how your assets should be divided.  Furthermore, if you have minor children, you can name a guardian of your choice, bringing you the peace of mind that your children will be well taken care of after you are gone.

The Importance of Having a Will in Wisconsin

As an attorney I try to stress to people the importance of having a will. However, many people don’t have one, and the the most common reason I hear is “we lack the property to really need a will.” Wrong answer. There are actually really important reasons to have a will no matter the size of your estate. If you die intestate (without a will) the state decides how your assets are distributed, but more importantly if you have children the state also decides who will be the guardian of your children. I don’t know about you, but I don’t think the state knows whats best for my children.

Launching of Lakeside Law Offices

Hello everyone,

My name is Angela Dean and I am the owner of Lakeside Law Offices in Milwaukee, Wisconsin.  My firm is a general practice firm and is able to assist clients with their everyday legal needs.