A Living Will says that if you are terminally ill or injured, your doctor or other healthcare providers should withhold or remove medical treatment.
A Health Care Proxy designates a person to make your health care decisions for you if you are unconscious or otherwise unable to communicate your own decisions.
In a Power of Attorney you appoint another person, known as an Agent or an Attorney in Fact, to act on your behalf. A Power of Attorney authorizes the Agent to manage property, assets, and sign legal documents for you, depending upon the amount of authority you may specify in the Power of Attorney.
A Living Trust, also known as an Inter Vivos Trust, is a written agreement which provides for the management and disposition of whatever property or assets you transfer to the Trust during your lifetime, and upon your death. A Living Trust can provide for disposition of your property upon your death in the same manner as through a will. A Living Trust may be revocable or irrevocable.
A corporation is a legal business entity separate and apart from its owners. Owners of a corporation are called “shareholders.” Shareholders are not personally liable for the obligations of the corporation. A corporation can have perpetual life, centralized management, and freely transferable interests. The liability of the shareholders is limited to the assets contributed to the corporation. A C-corporation is a corporation that for federal income tax purposes is taxed under Subchapter C of Chapter 1 of the Internal Revenue Code. A C-corporation has two levels of taxation, no restrictions on the number of shareholders, and is subject to accumulation tax. An S-corporation is a corporation that makes an election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. An S-corporation is not taxed on its earnings as a corporation. Rather, the profits of the corporation pass through to the shareholders for tax purposes, and thus, only taxed once. An S- corporation has limits upon the number of shareholders, and the types of shareholders.
A limited liability company (“LLC”) combines the best aspects of the corporations and partnerships. An LLC limits the liability of its owners the way a corporation does, permits the owners to participate in the management of the LLC, and yet still provides the pass through income tax treatment of a partnership or S-Corporation. The owners of an LLC are called “members”.
A Taxpayer Identification Number is an identification number used by the Internal Revenue Service in the administration of tax laws. It is also known as an Employer Identification Number (“EIN”). An EIN is used for business purposes the way a social security number is used for individuals. An EIN allows you to identify your business on state and federal government forms. You will need to obtain an EIN if: – You have employees – Your business is a corporation or a partnership – You withhold taxes on income, and you file for employment, excise or alcohol, tobacco and firearm taxes – You want to open a bank account in a corporate or other non-individual name.
Sole proprietorship, General partnership, Limited partnership, Limited liability partnership, Corporation (Subchapter S corporation or Subchapter C corporation), Limited liability company.
