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I am going to start renting a station and sharing clients…

I am going to...

I am going to start renting a station and sharing clients with a young lady I have trained in my business. I want to protect both of us and have a contract to just make us feel more at ease.

Accountant's Assistant: Because laws vary from place to place, can you tell me what state the property is in?

We live in Central Oregon.

Accountant's Assistant: Has anything been filed or reported?

Right now I am an LLC and I file all my taxes and do all the quarterly's etc. We want to convert.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

I think she needs to apply for a sole proprietorship?

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3/9/2018
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,374
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Will she be joining your business or forming her own?

If she is a sole proprietor (without being an LLC), there is nothing she needs to do. She uses Schedule C to report her income and expenses on her personal tax return.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Customer reply replied 4 months ago
That's amazing to here for her. I would still like a kinda Gerneric contract regarding to grooming to protect the both of us so that we don't end up ruining a good relationship. IE tools supplies?
Customer reply replied 4 months ago
I can't afford it at this time. Maybe I can find something on line thank you for your time sweetie.

Your question came through in the Tax category, but your latest question appears to be more legal in nature.

I will transfer this to the Legal category on your behalf.

Please do not respond as this will delay the process.

Thank you and have a great weekend!

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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,628
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi. My name’s Lane …

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

I’m reading your question now.

Bear with me a moment while I type up my response.

….

Then if you have further questions we can go from there.

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Customer reply replied 4 months ago
I'm Sorry like I told Barbara I can't afford $52 sweetie I'll just see if I can find something on line that is generic for now

First, your LLC does separate your professional liability from your personal (as long as you follow the LLC laws of your state, and don't commingle income as assets ... (make it clear when you are distributing monies from the LLC to you personally by moving from a business account to a personal account) ... this way someone cannot come against you personally for the actions of the LLC.

...

You could certainly add an other layer of protection from HER acts by ...

...

(Sorry that call offer was an automatically generated offer that the site throws out there... it didn't come from me)

...

Bear with me another sec while I finish

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You can draw up an agreement that simply holds you harmless.

...

This can be as simple as wording such as the following:

..

"XYZ agrees to hold harmless and indemnify abc (you) from and against liability arising out of Consultant’s negligent performance of services"

...

This is a much more enforceable, even insurable, phrase than what many try to do where the professionals try to indemnify you for everything except YOUR “sole” negligence; as mentioned above, this is not insurable.

...

And what is insurable is what will usually stand the test of litigation

...

Also, many non-professionally drafted indemnities often require the professional not only to indemnify you, but also to defend the you ... This will never hold.

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A Supreme Court case (the Crawford Case) made it clear that the obligation to defend was separate from the obligation to indemnify, and the indemnitor could be responsible for the indemnitee’s defense costs – even if it were ultimately determined that the indemnitor was without fault!

...

For additional information on the Crawford Case, see: http://www.cavignac.com/pdfs/0209CML.pdf.

...

This one had to do with design professional, but the issue is the same.

...

A clear, simply indemnification of you for HER actions is all that's needed.

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Customer reply replied 4 months ago
Thank you so much. I am renting a space to her so I can lower overhead because being a small business the Taxes are killing me and with the minimum wages going up the State is putting me outta business.
Thank you for your time
Laurie

You're very welcome Laurie... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here

...

Thank you,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,628
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now

Thanks much.

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