In this issue...........
Stuart Horwitz Receives
OSBA Specialization.......1
Simplify Your Operations
and Increase Your
Individual Protection
from Liabilities...............1
Business Health
Checklist.......................1
Management Incentive
Plan (MIP)......................2
New Ohio Asset
Protection Trust.............2
LLC S Corp Hybrids........2
News & Notes................2
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Page 2 The Guide Vol. 2, Issue 1
| Management Incentive Plan (MIP) "Little Known and Often Overlooked" |
There is a technique that has existed for over 60 years
that can give you almost all of the benefits of an ESOP
without any of the restrictions that drive most
business owners crazy. For example, you do not have
to worry about the anti-discrimination rules as you
can choose which of your key people you want in the
plan. Unlike ESOPs the benefit payable to the
participant does not need to be based on his or her
compensation. While ESOPs require both a put and
diversification option (which often cash straps the
company), you can add whatever limiters you want on
participant payouts under an MIP.
At The Horwitz Group, LLC we pride ourselves on
being able to take concepts like the MIP and mold
them to fit various business situations. To see if you
can benefit from this type of approach please contact
Stuart Horwitz at shorwitz@thehorwitzgroup.com or
(330) 670-5300.
that can give you almost all of the benefits of an ESOP
without any of the restrictions that drive most
business owners crazy. For example, you do not have
to worry about the anti-discrimination rules as you
can choose which of your key people you want in the
plan. Unlike ESOPs the benefit payable to the
participant does not need to be based on his or her
compensation. While ESOPs require both a put and
diversification option (which often cash straps the
company), you can add whatever limiters you want on
participant payouts under an MIP.
At The Horwitz Group, LLC we pride ourselves on
being able to take concepts like the MIP and mold
them to fit various business situations. To see if you
can benefit from this type of approach please contact
Stuart Horwitz at shorwitz@thehorwitzgroup.com or
(330) 670-5300.
| New Ohio Asset Protection Trust "First Quarter Planning: An Opportunity to Plan Ahead" |
If someone asked you what the best state for asset protection was, you might say Delaware or
Alaska. Until recently this was true. However, Ohio now provides greater protection than any
other state in the Union for certain non-self settled trusts. In fact, we predict that many
individuals will be moving their trusts to Ohio to obtain this protection. This means that in
many cases you can have premier protection without the cost of out-of-state trustees. If you
have questions regarding your qualification under the new rules please contact Stuart
Horwitz at shorwitz@thehorwitzgroup.com or (330) 670-5300.
Alaska. Until recently this was true. However, Ohio now provides greater protection than any
other state in the Union for certain non-self settled trusts. In fact, we predict that many
individuals will be moving their trusts to Ohio to obtain this protection. This means that in
many cases you can have premier protection without the cost of out-of-state trustees. If you
have questions regarding your qualification under the new rules please contact Stuart
Horwitz at shorwitz@thehorwitzgroup.com or (330) 670-5300.
| LLC S Corp Hybrids "Wave of the Future" |
| News & Notes |
Hybrids are not just for cars. Your company
can be an LLC-S corporation. We predict
that the wave of the future will be limited
liability companies that elect to be taxed as
Subchapter S corporations. The benefit of
an LLC is that there are almost no annual
company formalities. However,
distributions from LLCs are generally
subject to Social Security tax. So we
recommend choosing an LLC and electing
S status. The IRS recently made this an
easier election, eliminating one of the two
forms necessary to choose this hybrid form.
can be an LLC-S corporation. We predict
that the wave of the future will be limited
liability companies that elect to be taxed as
Subchapter S corporations. The benefit of
an LLC is that there are almost no annual
company formalities. However,
distributions from LLCs are generally
subject to Social Security tax. So we
recommend choosing an LLC and electing
S status. The IRS recently made this an
easier election, eliminating one of the two
forms necessary to choose this hybrid form.
- 529 Plans. Most people do not realize that
529s are generally subject to Ohio Estate
tax. Likewise most practitioners do not
address 529 plans when a spouse gets
remarried. There is a significant risk that
the new spouse may inadvertently receive
the right to withdraw the funds in the 529
plan, absent special planning. - Special IRA/Estate Tax Planning. If a large
portion of your estate is represented by
your IRA, you may be interested in our new
planning idea. - New Spin on Charitable Planning. If you
are interested in benefiting charities as
well as your children, please call us for a
new spin on an old technique.