Baton Rouge Legal Blog

Just because you've created an estate plan doesn't mean you can turn a blind eye to it for the rest of your life. There will be times when it makes sense to review your estate plan, with the idea that you may need to modify some of the terms and conditions.

Here are some examples:

• Divorce or marriage: If your marital status changes, there's a good chance it'll call for modifications to your estate plan. For example, if you get married, you may want to name your new spouse as the beneficiary of your will.
• Having a child or adoption: Adding a child to your family is a joyous occasion. Review your estate plan for applicable changes, such as naming a guardian or adding them as a beneficiary.
• Major change in financial circumstances: For instance, if you win the lottery or sell your business for a large sum of money, you'll want to alter your estate plan to match your newfound wealth.
• Too much time has passed: Even if you don't have a specific reason to modify your estate plan, the passage of time is enough for you to conduct a thorough review.

As you learn more about the many types of business structures, you may come to find that starting a company with a partner is the best way to move forward.

Choosing a business partner is easier said than done, as you don't want to make a decision you could regret in the future. Here are some tips for making the right choice the first time:

• Find someone with the right skills and experience: Just because you get along with someone doesn't make them a good business partner. They must bring the right skills and experience to the table, as to help your business grow.
• Choose a partner who is financially stable: Someone who is good with money in their personal life has a better chance of being financially responsible in their career.
• Take your partnership for a trial run: Work together for a few weeks on tasks such as creating a business plan, seeking funding and related business matters. This will help you better understand how you work together, if you enjoy teaming up with the person and how your relationship could evolve over the long run.

It doesn't matter how you feel about estate planning, it's imperative to make sound decisions that will benefit you and your family now and in the future.

No one is immune to estate planning mistakes. These are particularly common. Many people are in a rush to create an estate plan, as it's not something that they want to continually think about.

If you ever take time to look at the incorporation structure of some of your favorite, local small businesses here in Baton Rouge, you'll notice that many of them are set up as limited liability companies (LLCs). This isn't a coincidence. Many owners here in Louisiana and elsewhere in the United States choose to incorporate as an LLC because they appreciate how it provides them with many of the same protections of a corporation while still allowing them to operate as a small business.

An LLC has a highly desirable tax structure compared to many other types of business formations. The Internal Revenue Service (IRS) allows an LLCs profits and losses to be passed-through on their personal income taxes similar to what someone who owns a sole proprietorship or partnership can do. This means that there's no separate tax filing for an LLC.