Signing Legal Documents – Part 2
June 20, 2020
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Quick Bites:
- You are personally responsible when signing your own name with no other information.
- Signing a different name still makes you personally responsible as you actually did the signing (without additional information)
- Principal/Agent relationship is the controlling feature
- If signing for a person or company, must sign in a way to discloses your authority.
Signing Legal Documents
May 30, 2020
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Quick Bites:
- When you sign your name without other information, you are signing in your personal, or individual, capacity
- When signing on behalf of a company or entity the signing area must name the entity, your name, and your capacity. CEO, President, Member, Manager, etc
- Authority must be nested when signing on behalf of an entity that signs on behalf of an entity such as:
ABC LLC,
By: XYZ LLC, Manager
___________________
By: Joe Smith, Manager
Earnest Money
May 16, 2020
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Quick Bites:
- Earnest Money from a Buyer shows they are serious about purchasing.
- Contract should state if refundable and when it’s no longer refundable.
- EM should be held by a professional 3rd party.
- “Go hard” Is a term referring to when EM is no longer refundable.
- Poorly negotiated EM provisions can lead to litigation.
- The holder of EM is also referred to as an “escrow agent”
- In the event of a dispute, the escrow agent should have the power to pay the disputed amount into court and walk away from the transaction.
Stimulus Bill – Ensuring Medical Supplies
May 2, 2020
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Quick Bites:
- The government is being proactive about ensuring shortages do not happen again.
- The government is conducting and in depth review of what qualifies as essential medical supplies and looking at the robustness of the supply chain
- The government now has the power to expedite approval of suppliers for essential medical supplies
- The government will provide incentives for domestic production
- If you are a domestic supplier of essential medical supplies you have additional reporting requirements
- Domestic suppliers must also provide the government with at least 30 day notice prior to ceasing or materially reducing production and state the reason why
Stimulus Bill – Retirement Distributions
April 25, 2020
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Quick Bites:
- Eligible persons can distribute up to $100,000.00 in 2020 without penalty.
- Eligible persons/accounts may borrow up to $100,000.00 in 2020 against their eligible accounts.
- Employer certifies the employee is eligible. (Employer based plans)
- Repayment of the funds received are spread out over 3 years, without penalty. ((the annual contribution limit does not apply when reimbursing the account))
Stimulus Bill – Net Operating Loss (NOL)
April 17, 2020
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Quick Bites:
- NOL Carryback now allowed for tax years 2018, 2019, 2020
- May carryback up to 5 years
- 80% offset limitation removed
- Non-business expense limitation also removed
Paycheck Protection Program Part II
April 11, 2020
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Quick Bites:
- The Paycheck Protection Program is having difficulties during roll out.
- There is a form from the SBA that determines eligibility.
- Each Lender has their internal eligibility requirements that may be more strict than SBA requirements.
- 1099 contractors you pay are NOT eligible for your loan.
- Persons paid via 1099-misc are required to file for their own PPP loan.
- Exact rules regulations are still in flux.
Stimulus Bill – Paycheck Protection Plan
April 4, 2020
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Quick Bites:
- Available now from most lenders.
- Conditions for loan vary among lenders.
- Statutes and regulations differ, in borrower’s favor with regard to program.
- 2 year term
- 1% interest
- Loan amount is up to 2.5x monthly payroll calculated from the 12 months before crisis (February 15, 2020) up to $10 million USD.
- Loan forgiveness for amount used towards payroll up to 100k per employee.
- Also available for independent contractors & sole proprietorships
- No more than 25% of loan amount forgiven may be used towards utilities and rent/mortgage.
Federal Unemployment Benefits
March 28, 2020
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Quick bites:
- Stimulus Bill was not available for review prior to passage
- Creates Federal Unemployment Benefits
- Federal benefits are in addition to state benefits.
- Maximum of $600 per week
- Available to self-employed and “gig” workers
- Up to 4 months of payment
- Implementation still being figured out
Unemployment Benefits & Tax
March 22, 2020
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Quick Bites about Unemployment Benefits:
- Check your state’s Department of Labor for details
- Unemployment Benefits are paid out of a state level mandatory insurance pool with employers paying a tax to fund the pool.
- In Alabama and Georgia new businesses pay 2.7% on the wage base. After a period of time the tax rate falls or rises based on number of claims currently and recently paid to former employees.
- There is a table for calculating.
- Payments are made on a quarterly basis
- Some entities are exempt from the unemployment insurance tax (non-profits, religious, among others)
- Employees are not eligible if reason for separation of diminution of hours is their fault:
- Fired for cause
- Quit
- Part time employees may be eligible if their paychecks fall below the benefit amount for that reporting period.