If you put only essential assets into the corporation to start with, then you will probably not have very many reasons to take them back out ... Nonetheless, there is one big issue about taking assets out of the corporation.
Read More »Author Archives: Jim Krendl - Krendl Sachnoff Way Specializes in Dealership Acquisitions
Mouse in a Barrel
If you incorporate and do not make a special election to be taxed as an S Corporation (where the shareholders pay the taxes on corporate profits) your corporation will be a separate taxpayer known as a C Corporation.
Read More »Thoughts on how to transfer a dealership to a family member
For the past several of months we have talked about creating different classes of equity for the purpose of granting different economic rights and different control rights to various owners ...
Read More »Ways to attract outside investors to a dealership
Recently my blogs have addressed the question of various types of equity ownership interests in motorsports dealerships. For example an incorporated dealership could issue common stock and preferred stock, with ...
Read More »Stock options for dealers to consider
Last month our blog addressed the issues of using different kinds of equity, for example issuing a preferred class of stock to one shareholder or a group of shareholders and ...
Read More »Understanding dealership minority ownership interests
For a variety of reasons, a dealership may find it advisable to sell minority ownership (equity) interests to one or more new owners: a junior partner, a key employee, an ...
Read More »Separating operating assets from real property
Powersports dealers should understand the importance of separating dealership assets (inventory, accounts receivable, shop equipment, etc.) from real estate (the dealership building and surrounding land, including parking areas). Of course, ...
Read More »Protecting the Corporate Veil
In my experience, most dealerships are incorporated. The primary reason to incorporate is to have the protection of limited liability. That means the corporation, not its individual shareholders, is liable ...
Read More »Estate planning in tough times
One of the few benefits of hard times is the opportunity to make large tax-free estate planning transfers. In any tax year you can transfer $13,000 of cash or property ...
Read More »A Vital Element When Catastrophe Happens
Although many people never think about it, the biggest reason for forming a corporation is to protect the individual owner from personal liability for corporate acts. In the everyday business ...
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