How To Deal With An Economic Crisis (COVID 19)

How are you acting during this health and economic crisis?

Are you being reactive, proactive, or are you leading others to help your community?

Are you financially resilient?

statistically 10% or less people are leading and 80% are being reactive. learn why and what you can do in times of crisis to thrive and come out of the crisis more resilient.

economic crisis


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Looking for a better way to invest? 

Consider Betterment.

It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.



Today's Panelists

Learn How Tactical Asset Allocation Investing Strategies Could Protect Your From The Market Next Downturn

Are you worried about the next market downturn?

Want to know how to protect yourself?

Want to know why you have never heard about this type of investing from your broker?

We interview an up and coming quant and tactical asset allocation manager and discuss how tactical investing can protect your assets during adverse market conditions. Don't miss this episode with PJ DuWors of Q32 Capital Management.


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Sign up to be one of our Money Tree Ultimate Insiders. You will have instant access to new episodes, automatically have access to our monthly giveaways, and the potential to be a guest panelist on our show


Looking for a better way to invest? 

Consider Betterment.

It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.


Today's Guest:  PJ Duwors

PJ DuWors is a former engineer who has worked in quantitative finance for 13 years.  His passion for systematic investing was sparked in business school, where he was the president of Anderson Student Asset Management, a student-run quantitative fund.  PJ started his career on Wall Street with Lehman Brothers in 2006 as a structured notes trader. In this role, he was responsible for structuring complex securities linked to various asset classes and trading derivatives, credit, and interest rate risk.  He has held similar roles at Barclays, UBS, and most recently as a Senior Vice President at Jefferies. In 2015, PJ founded Q32 Capital Management to put into practice quantitative strategies he had been developing for a decade.


PJ graduated from the University of Notre Dame in 2001 with a Bachelor of Science in Mechanical Engineering.  He began his career as a satellite operations engineer at Northrop Grumman in Redondo Beach, CA. He then earned a Master of Business Administration with a concentration in finance from UCLA Anderson in 2006.

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Today's Panelists

Historical Stock Market Returns – Learn From The Past To Predict The Future – Barbara Friedberg

Are you looking at historical stock market returns as a way to find the next hot investment?

Learn why that can cost you money and how some of the top investors look at historical stock market returns. We dig into past performance and discuss how you can use that to benefit your portfolio. We interview seasoned stock market veteran, Barbara Friedberg about how you should look at historical stock market returns.

Historical Returns

Show Resources:

If you are looking for great resources to find out how to track historical returns, this is a good list of resources to use for accurate data.

Recommended Books:

Historical Risk

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YCharts - Smart Investment Decisions Made Simple

We here at Money Tree Podcast use YCharts to uncover new investing opportunities, analyze trends and monitor our progress. YCharts is a powerful financial data platform designed for Individual Investors, Financial Advisors and Asset Managers. Their platform makes our lives easier. What can be better than that.

We struck a deal for our listeners where you get 20% off your access to YCharts if you sign up in the next month


Today's Guest:  Barbara Friedberg

Barbara Friedberg, MBA, MS is a former investment portfolio manager, author of Personal Finance; An Encyclopedia of Modern Money Management and How to Get Rich; Without Winning the Lottery. Friedberg is a former university Finance and Investments instructor, and publisher of Barbara Friedberg Personal Finance.com and Robo Advisor Pros. Her work has been featured in U.S. News & World Report, Yahoo! Finance, Investopedia, GoBankingRates, and many more publications.

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Today's Panelists

Investing Legends: Steven Bregman – Value Investing In Uncertain Market Conditions

Markets around the world are overpriced. Value stocks have under-performed for over 10 years. If you are a value investor, where do you invest?

This is one of my favorite interviews. This week we  interview Investing Legend, Steven Bregman. He explains how he looks at the markets from a value lens, why value investing is important to overall market health, the danger of low interest rates, why you should worry about the indexation of markets, and the bond ETF bubble. We cover a lot in this episode, but if you are serious about investing, this episode is pure gold.

Value Investing

Value Investing - One Historical Extreme Among Many

Interest rates are now the lowest in the recorded history of mankind. Here is a sampling from across the scope of global history to give you a sense of what ‘normal’ rates are.

o   Over the course of 600 years through 100 BC, the ancient Greeks generally charged between about 6% and 12% for loans secured against real estate or to cities.[1]

o   During the 1300s, in Venice, long-term loans to States were generally in the 5% to 8% range.

o   In 1799, after Napoleon gained power, France issued 5% bonds.

o   In the 1860s, during the Civil War, U.S. Treasuries were largely in the 4 ½% to 5 ½% range.

o   During the entire 20th Century, there were only 3 separate years – all during the 1940s – when U.S. 10-year Treasuries declined below 2%. This reflected the government’s extraordinary mobilization of the economy for World War II. To understand the extremity of that environment, every American citizen was issued ration books, with coupons that were required for buying necessities ranging from gasoline to butter. Infractions were punishable by fines up to $10,000 – in 1940s dollars! That would be roughly $300,000 today.

[1] A History of Interest Rates, Sidney Homer, Rutgers University Press, New Brunswick, NJ. 1963.


Bonus Insight into YCharts Stock Screening Tools

Value Stocks Travel Industry
Value Stock Screen

 

The Path to Indexation Dominance of Modern Investing

The 2008/2009 Financial Crisis catalyzed an accelerated movement toward indexation:  no one wanted security specific or manager specific risk. They wanted a basket of securities.  The accumulation of over a decade of $100 billion+ annual flows into ETFs looks a little like this:

  • At March 2009, there were fewer than 100 ETFs in the U.S., today there are over 2,000.  This occurred even as the number of listed stocks in the U.S. declined by about 25%.
  • The ETF industry in March 2009 had total assets of $485 billion, today it’s $4 trillion. Just a single ETF, the SPDR S&P 500, now has over $300 billion. 

An ocean of buying power has been directed at an ever-smaller sub-set of mega-companies with sufficient share trading liquidity to serve index funds’ needs.  Last year, Indexed equities passed that critical 50% border: they are now well above 50% of all equities – the majority of the pool – and have been the marginal trade for a decade. They were supposed to be passive, just along for the ride, but it appears they have hijacked the clearing price mechanism.  If the clearing price mechanism of the marketplace is broken, how does one know what the fair or natural price is, what the ‘market price’ is?

==================

 

A Window into the Value of the Industrial Strength Trading Liquidity of Mega-Cap Companies

Microsoft is in 212 different ETFs.  This small sample might shed some light on why.  It’s in:

    • The Technology Select Sector SPDR Fd, as a 20.2% position.
    • Vanguard Growth ETF, 9.3%
    • JP Morgan US Value Factor ETF, 2.3%
    • iShares USA Momentum Factor, 5.4%
    • iShares Minimum Volatility USA, 6.1%
    • Invesco Dividend Achievers ETF, 4.5%

So, Microsoft is simultaneously a growth stock and a value stock.  It’s both a momentum stock and a low volatility stock. It’s also a dividend stock and, of course, a technology stock. The point is, there is an insufficient population of super large companies to go around.  If one of them really has industrial strength trading liquidity, and if a fund organizer is starting a new ETF, it will be shoehorned into that ETF if they can possibly swing it. 

Here are a few more Microsoft ETFs:

  • iShares USA ESG Select ETF (Environmental, Social, Governance), 5.5%
  • US Vegan Climate ETF, 5.3%
  • Impact YWCA Women’s Empowerment ETF, 5.4%

=================

 

ETF Truth in Labeling (or Flying Blind)

Someone who wanted diversified exposure to Spain would probably have bought the iShares Spain ETF (EWP), a popular asset allocation building block with $940 million of AUM.

Just two problems:

  1. The top 5 holdings account for over 50% of the ETF’s value, and the top 10 for over 70%.  So, it’s super concentrated, not diversified. Security-specific diversification is a basic tenet of passive investing, so that a disaster in any one or few stocks will not meaningfully harm the fund’s results. Rest assured, any active manager found to be that concentrated would immediately be dismissed by a consultant for taking excessive risk.  But an index can’t be dismissed; it merely represents ‘the market’, after all.
  2. These top 10 holdings get over 70% of their revenues from OUTSIDE of Spain!  Buy Spain, and get NOT Spain.

This is another reflection of the requirement by ETFs for large, liquid companies:  EWP can’t afford to traffic in modest-sized local companies that truly reflect the character of the local economy.  All but one of the top 10 are global multi-national companies. Buying Banco Santander is not so very different than buying Citibank in the U.S., and buying Amadeus, the airline reservation infrastructure system, is not so very different than buying Sabre in the U.S. 

Historical Risk

 

Compare & Contrast:  Indexed Bond Funds vs. a non-Index-Centric Bond Fund

Bond Market Bubble


 

iShares Invest. Grade Corporate Bond ETF (LQD)

BlackRock MuniHoldings Quality Fund (MUS)

Inception date

2002

1998

Assets

35 Billion

0.3 Billion

Yield to Maturity

2.6%

5.7%

Distribution Yield

2.6%

4.1%

Yield after Fed Taxes

2.0%

4.2%

Average Maturity

13 Years

25 Years

Average Bond Price

115

116

Credit Quality

 

 

AAA

2%

15%

AA

8%

36%

A

39%

30%

BBB

48%

14%

Leverage

0%

37%

Discount to NAV

0%

-9.0%

10 Year Annualized Return

5.93% (taxable)

5.97% (tax-exempt)

Closed End fund search tool: www.CEFconnect.com

Basically, the laws of supply and demand have never been healthier. If every institution determines to buy bonds through the index funds that traffic in the same large-tranche securities, they will be priced higher:  a 2% after-tax yield. If every institution ignores non-index-suitable bonds, even if in a fund format (but a non-standard format), they will be priced lower; in this case 4% after tax yield, plus the possibility of appreciation.

Footnotes:

[1] A History of Interest Rates, Sidney Homer, Rutgers University Press, New Brunswick, NJ. 1963.

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YCharts - Smart Investment Decisions Made Simple

We here at Money Tree Podcast use YCharts to uncover new investing opportunities, analyze trends and monitor our progress. YCharts is a powerful financial data platform designed for Individual Investors, Financial Advisors and Asset Managers. Their platform makes our lives easier. What can be better than that.

We struck a deal for our listeners where you get 20% off your access to YCharts if you sign up in the next month


Today's Guest:  Steven Bregman

Steven Bregman - President, Co-Founder of Horizon Kinetics LLC

Steven is the President of Horizon Kinetics and is a co-founder of the Firm. He is a senior member of the Firm’s research team, a member of the Investment Committee and the Board, and supervises all research reports produced by the Firm. As one of the largest independent research firms, Horizon focuses on structurally inefficient market sectors, including domestic spin-offs, global spin-offs (The Spin-Off Report and Global Spin-Off Report), distressed debt (Contrarian Fixed Income) and short sale candidates (Devil’s Advocate), among others. Horizon Kinetics has also taken an interest in creating functionally improved indexes, such as the Spin-Off Indexes and the Wealth Indexes (which incorporate the owner-operator return variable). Steve is also the President and CFO of FRMO Corp., a publicly traded company with interests in Horizon Kinetics. He received a BA from Hunter College, and his CFA® Charter in 1989. Steve has authored a variety of papers, notably “Spin-offs Revisited: A Review of a Structural Pricing Anomaly” (1996) and “Equity Strategies and Inflation” (2012).

Steven's Online Presence:


Today's Panelists

Market Update – Our Panelists Opinions on Coronavirus, Supply Chain Disruptions and Oil Price Drop

Back by popular demand, Kirk Chisholm, Megan Gorman and Barbara Friedberg discuss a market update for today March 12, 2020.

Today we are discussing the coronavirus, the big oil price drop and the supply chain disruption… and most importantly, what to do with your portfolio now.

Listen to three experts tell you how to manage your investments during this market turmoil… And we do it without scaring you.

oil price drop

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Looking for a better way to invest?

Consider Betterment.

It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.

Today’s Panelists

Market Monday: How to Protect Yourself In This Market, The Coronavirus, Lebanon Debt Default, and Fed Manipulation – March 8 2020

Welcome to our first Market Monday where we discuss what happened last week, what to expect next week and to help put the market into perspective. Last week was a crazy one… just like the week before. Will this continue?

We talk about how to look at the market with an unbiased lens, how to not lost your mind while others are losing theirs, the bond market, the Lebanon bond default, the spike in the VIX and what it means, the coronavirus (COVID-19), economic conditions, black swan events, fed manipulation and more…

market mondaycoronavirus ytd returns

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Sign up to be one of our Money Tree Ultimate Insiders. You will have instant access to new episodes, automatically have access to our monthly giveaways, and the potential to be a guest panelist on our show

Looking for a better way to invest?

Consider Betterment.

It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.

Today’s Panelists

Apartment Syndication Investing Interview with Aaron Fragnito

Are you looking to invest in real estate that is too expensive? 

Are you looking to invest in real estate but don't feel you have the expertise or time to do it yourself?

Have you considered apartment syndications? 

We discuss the pros and cons to this assets class and investment style on our show this week with Aaron Fragnito. 


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Looking for a better way to invest? 

Consider Betterment.

It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.


Today's Guest:  Aaron Fragnito

Aaron Fragnito is a Co-Founder of Peoples Capital Group (PCG), host of New Jersey Real Estate Network, a licensed NJ Realtor and a full time real estate investor. Aaron has completed over 250 real estate transactions, totaling more than $35,000,000 in Real Estate in his career. 

Peoples Capital Group (PCG) works with qualified investors to create passive returns through local commercial real estate. The owners of PCG are experienced in locating discounted apartment buildings for sale in Northern NJ and implementing a value add strategy to create max returns for their silent investors.

Aaron's Online Presence:


Today's Panelists

The Risk Management Process – How Experts Manage Risk Interview With Kelly Coughlin

Are you worried about risk in your portfolio? ​

If you are not worried about risk you should be. If you are worried about risk, this show will discuss how to think about risk management with your investments.

This week we discuss how to create a risk management process with 3 essential elements that many financial institutions miss. Kelly Coughlin refers to this as making sure your investments have TLC. Great tips from a former insider.

risk management process



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Looking for a better way to invest? 

Consider Betterment.

It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.


Today's Guest:  Kelly Coughlin

Kelly Coughlin is recognized and praised in the tax, accounting and finance industries for his ability to solve complex business problems frequently through removing the noise and simplifying and solving the problem at hand. Being clear, concise and credible is Kelly’s standard operating procedure. Kelly’s colleagues have said “Kelly is frequently the smartest guy in the room, but he never broadcasts it. He demonstrates it through acumen, insight and analysis.”


Kelly is chief executive of both EveryDayCPA, a business strategy, tax, accounting and risk management firm; and founder of Tax Resolution Help Center, an education platform for taxpayers to remove, reduce and resolve tax debt themselves. In addition to tax and accounting topics, he loves to talk about business strategy, business startup and business exit. Business failures and mistakes is a topic he loves…partly because he has made so many mistakes and partly because he is a lousy athlete. Kelly believes that business competition is the only way he can effectively compete, fail, and win, baby, win! 


Kelly is a CPA with an MBA from Babson College in Massachusetts. He studied accounting at the University of Minnesota and has a BA from Gonzaga University. Many years ago, wanting to be a James Bond spy, he studied Russian at Middlebury Language school in Monterey, CA. Kelly worked with PWC and multiple Lloyds Bank subsidiaries. He also founded, managed and sold a financial technology company in 2012. He describes himself as a Sun Tzu business strategist and a Michael Porter business tactician.


Kelly currently hosts the podcast program, EveryDayCPA, On Your Side, Every Day, and is available for live and recorded audio and video interviews.

Kelly's Online Presence:


Today's Panelists

The Ultimate Insider’s Guide To The Deferred Sales Trust

Are you considering the Deferred Sales Trust to defer capital gains taxes on the sale of your business, real estate or low costs basis stock?

This episode is the Ultimate Insiders Guide to the Deferred Sales Trust. We discuss how it works, what you need to know, and is this something you should use. We interview a trustee and promoter of the deferred sales trust, Brett Swarts. 

deferred sales trust


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Looking for a better way to invest? 

Consider Betterment.

It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.


Today's Guest:  Brett Swarts

Brett Swarts is an entrepreneur, cre investor, podcaster, deferred sales trust educator/trustee, and Nor. CA multifamily broker. His leadership roles include serving as the Founder of The Brett Swarts Cap Gains Tax Show, Founder of Capital Gains Tax Solutions, and Founder of Commercial Realty Apartment Advisors.


He leads a team of extraordinary people at his companies. He has served billionaires, Doctors, Veterinarians, Attorneys, Tech Entrepreneurs, Architects, CRE Syndicators/Operators, and more, to help them create and preserve their wealth through investment real estate. He leads them through this process by leveraging the optimal timing capital gains tax deferral structure known as The Deferred Sales Trust. Its purpose is to help individuals escape feeling hostage to the 1031 exchange and 30-50% capital gains tax when they sell their highly appreciated assets such as; a business, CRE or a primary home. By focusing on the timeless aspects of being the guide, and not the hero, Capital Gains Tax Solutions’ educational platform inspires and helps business professionals like Venture Capitalists, Financial Advisors, Business Brokers, CRE Syndicators and Realtors help their clients or partners execute a passive capital gains tax deferral wealth plan of their own.

Brett's Online Presence:


Today's Panelists

Types of Business Entities – What’s The Best Entity For Your Business?

Are you looking to start a business? 

Struggling to figure out what types of business entities to create?

Trying to optimize the structure to minimize taxes and potential liability?

S-Corps, C-Corps, LLC, B-Corp, and more. We discuss why it is important for your company or your investment. 

Margo’s Guide to Types of Business Entities

Starting your own business is quite possibly the most exciting decision you’ll make your entire working life. But once you take that leap of faith you’re faced with a great big stack of questions.

Most of these are of the exciting variety—which products or services am I going to sell? How am I going to get my new brand out there? What am I going to do with all that cash when I’m heading up the next Google? (OK, maybe don’t spend too much time on that last one).

But alongside the fun stuff there are some rather more boring—but equally important—questions you need to be asking.

People call me up on an almost daily basis to ask for advice about one of these questions in particular:

Which types of business entities are right for me?

The truth is, there’s no right or wrong answer here (when is there ever?!). But there are clear pros and cons to each structure, and generally speaking there will be an option that makes the most sense for your business.

And this question isn’t just for new businesses either—over the years I’ve seen a shocking number of firms that are losing a ton of money by virtue of being classified under a sub-optimal business entity.

Since sharing is caring, I’ve put together this quick guide covering some of the most important aspects of the common entity types young businesses tend to adopt.

Sole Proprietorships

Sole proprietorships are the first of the types of business entities most entrepreneurs consider when starting their company.

They’re simple to set up and run, and the business owner has full control over all aspects of the business. All the company’s profits and losses are the responsibility of the business owner, who is also the sole decision maker. In fact, the simplest way to look at Sole Proprietorships is to view the business and the owner as effectively the same thing.

While this total control is a benefit in some senses—when it comes to decision-making, for example—the lack of separation between business owner and business has important implications when it comes to financial liability.

Here are the pros and cons:

For:

  • Simple setup
  • Full control of decision-making
  • Business losses offset income earned from other sources

Against:

  • You as the owner are completely responsible for any losses your business suffers
  • In addition to the above, your liability is completely unlimited. This means your own assets are on the line if your company goes bankrupt, and could therefore be seized to satisfy business debts or legal claims filed against you
  • As owner, you’ll pay personal income taxes on your business’ net profits
  • It’s generally difficult to raise money as a sole proprietorship, meaning you’re likely to have to finance your business using your own resources, such as savings, personal loans, or home equity

Corporations

Corporations are rather more complicated than sole proprietorships, allowing business owners to make their companies entirely separate entities. Crucially, this entity is also distinct from its owner in the eyes of the law, meaning the owner’s liability is limited, and the business itself has its own set of legal rights. This means a corporation can raise capital, buy real estate, sue, and be sued.

Corporations are owned by a list of shareholders who then elect a board of directors. It’s the responsibility of the board of directors to oversee the day-to-day running of the company, like hiring and firing and other key decision-making.

This may sound all sound very complicated and more suitable for larger businesses. But it is, in most cases, possible to be both the sole shareholder and director at the same time, meaning you can set up a corporation all on your own, if you so choose.

Here are the pros and cons of a corporation:

For:

  • Limited liability – the owner’s personal assets are safe in the event that the business experiences financial difficulty
  • Raising funds – corporations may sell stock to raise funds
  • Indefinite existence – even if a shareholder passes away or sells their shares, the company will continue indefinitely.

Against:

  • Challenging and expensive setup – it can be expensive and time-consuming to set up a corporation. You’ll very likely need an attorney to help get you started, adding further expense.
  • Complex accounting – corporations are subject to more complex tax rules than a sole proprietor would be used to, meaning tax preparation and bookkeeping services will likely be needed.
  • Double taxation – perhaps the biggest drawback to corporations is that of double taxation. The business is regarded as a separate legal entity and as such is subject to taxes. But since dividends distributed to shareholders are also taxed at a personal level, the business owner of a small corporation may end up paying tax on their income twice.

As we’ve seen, there are some major benefits to incorporating, but for small business owners the issue of double taxation is a significant one.

There is, however, a way to incorporate a small business while avoiding this pitfall altogether—by opting to take advantage of a particular corporate structure known as an S Corporation.

S Corporations

Named for subchapter ‘S’ of the revenue code (and not for ‘small’ corporation as many people believe), S corps share many of the same properties of good old regular corporations. But crucially, S corps are considered ‘pass-through’ entities for tax purposes, meaning income and losses are passed through to shareholders and included on their tax returns. As a result, there’s only one level of federal tax to pay.

While S corps have similar obligations to regular corporations when it comes to compliance and documentation, the resolution of the double taxation issue alone is reason enough for many small businesses to adopt the S corp business structure.

Here are the pros and cons of an S Corporation:

For:

  • Single layer of taxation – the avoidance of double taxation is very likely the single biggest benefit of the S corporation business structure. Taxes are paid only at the shareholder level, and not at the corporate level.
  • Limited liability – just like with regular corporations, owners of S corporations can rest assured their own personal assets are safe in the event their company experiences financial difficulties (providing they haven’t acted outside of the law, or against the duties and responsibilities of their position).

Against:

  • Can only issue common stock – unlike regular corporations, S corps are only able to issue common stock, which may hamper efforts to raise capital.
  • Challenging and expensive to set up – Much like regular corporations, S corps are relatively complex to set up, and you may need to enlist the services of an attorney.

Limited Liability Company

The limited liability company, or LLC, is a business structure that takes advantage of the benefits of both corporations and partnerships.

As the name suggests, LLCs offer business owners a degree of protection from personal liability, meaning personal assets typically won’t be at risk should the business face financial difficulties.

Like S corps, LLCs also avoid the issue of double taxation, with profits and losses ‘passed through’ to the business owner’s personal income. But unlike S corps, LLCs don’t need to adhere to any particular corporate structure, meaning they’re relatively flexible when compared to other traditional types of business entities.

Here are the pros and cons of LLCs:

For:

  • Limited Liability – in most cases (though not all), the owner’s personal assets will not be at risk in the event their company experiences financial difficulties.
  • No double taxation – as a pass-through entity, LLCs avoid the double taxation issue some other business structures face.
  • Flexible structure – LLCs are more flexible than corporations. They can, for example, be managed by their members, or by managers, which can be particularly useful if members aren’t experienced in the running of businesses.

Against:

  • No stock – unlike corporations, LLCs don’t have shares or stock certificates to offer. This can make raising capital a challenge.
  • Pricier staff incentives – also unlike corporations, owners of LLCs aren’t able to deduct the cost of benefits from profits, meaning it can be more expensive to offer staff incentives.
  • Limited life – in many states, LLCs have a limited life and must be dissolved if a member leaves the company, goes bankrupt, or dies.

Choosing the best types of business entities for youy company is a big – often daunting – decision. But it’s worth spending the time to get it right. This topic is both broad and deep – we’ve only scratched the surface here.

If you’d like to learn more, feel free to reach out!

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Looking for a better way to invest? 

Consider Betterment.

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Today's Guest:  Margo Masri

As a multiple award-winning accounting firm, MM Accounting and CFO Solutions offers highly-customized financial services specifically designed to take your business to the next level – and beyond.

Utilizing cutting-edge accounting techniques and drawing on a wealth of industry-specific experience, MM Accounting is your trusted partner for enhanced business growth, increased automation and efficiency, and a truly class-leading customer experience.

Margo's Online Presence:


Today's Panelists