Corporate

Asset Protection in Florida: Five Common Mistakes – Five Tested Solutions

Published on: September 16, 2012 | by Rarick & Bowden Gold

By Miami Asset Protection Attorney Phillip B. Rarick, Esq.

In our litigious society anyone can become a target of a plaintiff seeking to get a money judgment against you personally. In today’s real estate market, where it is usually impossible to negotiate with the lender, deficiency judgments are a major concern. You may have excellent car or property insurance, but a good personal injury attorney will typically seek to go beyond the insurance limits and name you as a defendant if the damages are substantial. Owning assets that are exposed is an invitation to a lawsuit.

Thanks to the Internet, it is now easy for a creditor to find every piece of real estate that you own. In fact, if you own real estate for commercial or investment purposes, you might as well publish your property holdings on the front page of the Miami Herald because it now takes minutes to find what property you own on the Internet.

Beware of Florida Single Member LLC’s: Seven Ways to Avoid this Sand Trap

Published on: July 25, 2012 | by Rarick & Bowden Gold

By: Phillip B. Rarick, J.D., and Jay R. Beskin, J.D.

Miami Asset Protection Attorneys

Background Summary:

Florida Legal Resources

Published on: June 3, 2012 | by Rarick & Bowden Gold

I am pleased to announce a valuable new feature on our web site that I trust you will find helpful. We want to share with you all the Florida local and state legal resources that we routinely use in our probate, corporate, guardianship, and estate planning practices.

Resources is a virtual law library of Florida and Federal law, as well as helpful local county data bases. Here are some examples:

Florida Probate Statutes

Living Trusts Do Not Protect Your Assets; So What Does?

Published on: March 3, 2012 | by Rarick & Bowden Gold

Now may be an excellent time to attack a common misunderstanding about living revocable trusts: These trusts do not protect your assets if you are sued. If you can be sued, your revocable trust can be sued.

Some people believe that the living trust is like a “pink pill” solution: it solves everything. While the living trust is a powerful legal instrument that virtually every person should have because, among other benefits, it minimizes or prevents the intervention of a court into your personal or financial affairs, it does not solve all legal problems.

Specifically, the living revocable trust is not an asset protection entity. If you have any concern that you might be sued due to a foreclosure or some other matter, I would advise you to schedule an asset protection consultation with this firm. There are many options to consider.

Watch Out for the Florida Stealth Tax: Documentary Stamps

Published on: February 18, 2012 | by Rarick & Bowden Gold

Virtually all states are looking to increase tax revenues and Florida is no exception. One area in which the state is becoming more aggressive is the collection of documentary stamp taxes.

As outlined in Florida Statue §201.02, this stealth tax must be considered in virtually all transfers of interests between or within Florida corporate entities, and all transfers of real estate, including real property gifts between family members. Evaluating this tax can be tricky!

Here are some examples:

Florida Corporate Filing Scam Alert – Again!

Published on: January 29, 2012 | by Rarick & Bowden Gold

Last year I reminded you of a corporate scam called Compliance Services. This year I need to advise you that this company is still in business – and now there another highly questionable company to be on the alert.

First, if your client gets a letter that looks like an “official” letter from the state of Florida, or an email from a company called Compliance Services (not to be confused with the Florida corporation, Compliance Services, Inc.) asking for a fee of $125 for corporate minutes BEWARE. Minutes are not required to be posted with the Florida Secretary of State. Rather, they should be prepared and filed in your client’s corporate book. This company is trying to masquerade as a Florida government agency and scam your client out of $125. These messages should not be confused with notices from the Florida State Division of Corporations remindng each business entity to file its 2012 Annual Report. Such messages were sent out via email by the Florida Division of Corporations in early January.

Second, while not a scam, there is a web site that can easily confuse your client and trick them into paying extra money for filing their annual report. The “trick” site is sunbiz.com; the official web site for the state of Florida is www.sunbiz.org. Avoid sunbiz.com.

Olmstead Patch Bill Signed by Governor: Multi-Member Florida LLC’s Improved As Asset Protection Entity

Published on: June 11, 2011 | by Rarick & Bowden Gold

By Phillip B. Rarick, Esq., Miami Asset Protection Attorney

Executive Summary:

Last summer in the case of Olmstead V. F.T.C the Florida Supreme Court held that a charging order is not the exclusive remedy against a single member LLC and indicated that it may not be the exclusive remedy against a multi-member LLC. 2010 WL 2518106 (Fla. June 24, 2010.) This case revealed a major flaw in Florida law for LLC’s: it showed that a Florida LLC could be attacked more easily since the creditor of a single member LLC was not limited to a charging order against a LLC member, but rather could step into the shoes of the member. The new legislation, HB 253, signed by the Governor on May 31, makes clear that a charging order is the exclusive remedy against a multi-member and single member LLC. However, for a single member LLC, the new law provides a significant exception that creditors may be able to utilize to penetrate the LLC, rendering single member LLC’s still vulnerable.