Business Structures

Business Structures

Choosing from all the different business structures — LLC, partnership, sole proprietorship, or corporation — for your business can be difficult and will depend on your preferences and the type of your business.
Whenever you start a business, you will have to select one organizational type from out of all the different business structures. This choice determines how your business will be set up and organized. In most instances, you will probably have to choose between a limited liability company (LLC), a partnership, a corporation, or a sole proprietorship.
There are some criteria that you can use to find the business structure that works the best for your purpose. These criteria are (1) the different types of liabilities that come with each business structure; (2) the expenses and procedures associated with establishing and continuing to run the various business structures; (3) income taxes; and (4) what are you investment needs.


The general rule for this category is that the more dangerous or risky the activity that your business will engage in, the less personal liability you want to have.

Both corporations and LLCs allow business owners a type of “limited liability,” where anyone seeking claims against the business will have a very hard time placing personal liability on you as the owner. Conversely, if you were to organize your business as a partnership or a sole proprietorship, you could be personally responsible for anything the business did wrong.

In general, there is no special paperwork that needs to be filed in order to establish either of these business structures. In addition, there are rarely any fees associated with establishing or maintaining either of these business structures.
LLCs and corporations, on the other hand, are almost always more difficult and expensive to establish and maintain. In order to establish a corporation or limited liability company, you must file “Articles of Incorporation” with your secretary of state and pay fees associated with the incorporation. The details of the articles of incorporation and the amount of the fee will vary depending upon the state where you set up your business.


In addition, when deciding to form a corporation or LLC, the owners of the business must decide which officers to elect to run the company. LLCs and corporations must keep specific and detailed records of any important business decisions, and follow many other formalities that are associated with these business structures.

The easiest way to think about the different income tax structures that these business structures will use is to break them into two categories — one comprised of those business structures where the business owners pay taxes on business profits, and one that includes all business structures where the business owners do not pay taxes on business profits.
The first category includes sole proprietorships, partnerships and LLCs. These business structures are often referred to as “pass-through” tax entities because the taxes on the business profits and losses pass through to the business owners on their personal income taxes.
Business owners of sole proprietorships, partnerships and LLCs must report and pay taxes on all net profits from their business, even if they take no money out of the business’ account during the tax year.
Unlike the pass through tax businesses, the owners of a corporation do not pay taxes on the net business profits of the corporation. Instead, the business owners of a corporation pay taxes only on the profits they actually take from the corporation in the form of salaries, dividends and bonuses.


Because a corporation is a separate tax entity, it must pay taxes on any profits that remain within the company during a tax year, and also on any profits that it pays out in the form of dividends to shareholders.
There is a tax benefit to forming your business as a corporation. The owners of a corporation do not pay taxes on any profits that the corporation keeps, and the corporation pays taxes at a lower rate than do some individuals.

Structuring a business as a corporation allows a business to sell shares of ownership in the business through stock offerings. This is different than the other three business structures, which do not allow the selling of part of the business through the sale of stocks. Because of this investment scheme, it may allow owners of a corporation to attract investors and retain employees more easily by offering stock.
If you never plan on having your business go on sale to the public, however, and don’t need the investment incentives to retain employees, you probably do not need to go through the added procedure and cost of forming a corporation. If you desire the limited personal liability that comes from a corporation, you could instead form your business as a LLC. An LLC provides many of the advantages of a corporation while remaining more flexible.

Free Consultation with a Utah Business Lawyer

If you are here, you probably have a business law issue you need help with, call Ascent Law for your free business law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/business-structures/

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Utah Law on Child Support

Utah Law on Child Support

In Utah, child support does include medical and dental expenses and health care insurance, and the courts also order the parents to share daycare and child care expenses while the custodial parent is working or undergoing any training. Unless ordered otherwise usually the parties are to split any out-of-pocket Medical Dental or health care expenses – including Health Care insurance premiums, if any.


Child support is always calculated by using the child support worksheet produced by the Office of Recovery Services in the Department of Health in the state of Utah. This worksheet generates inappropriate Utah child support obligation according to each spouse is gross income and some other factors, such as how many children there are, how many overnights are spent with which parent, and taxes and some other contributions.

Both parents are responsible for child support

Contrary to popular belief, Utah law requires that both parents financially support their child or children. Either or both parents may be ordered to pay child support. The Utah child support, or the court determines the amounts are unjust for a particular reason.

The child support calculator includes a formula to determine amount of support that each parent has to pay depending on the number of children, the income of both parties, and the custody Arrangement. You can estimate your fair share of support by using the state’s child support guidelines yourself or by contacting our office. We help people calculate child support all the time.

The guidelines are simply a fee schedule or formula. Parents are free to pay more than the amount given by the guidelines but not less, then, the Court must approve them out. Though a quart presumes that the number given by the guidelines is the appropriate amount of Child Support to a parent word the child. In those cases, Court will review a set of factors and may adjust the amount of support either up or down depending on the circumstances.


The most important thing to remember and making calculation is to use the gross income of book parents. To calculate the gross income take all income from all sources. This include salaries and wages, but also bonuses, rents, income from trust, and capital gains. Among each of these things, it also includes alimony received from previous marriages, Social Security. Gifts and prizes count to. There are few benefits that you can leave out a general assistance, housing subsidies, or welfare benefits. Primarily it is the gross income from your job.

Challenging the amount of Child Support

sometimes, the total amount given by the guidelines or the way that number is divided between the parents is not right or unfair. If you think support should be increased or decreased before the court issues the order, then you can ask a court to adjust it. Once you ask, a court will review all relevant factors, but especially the following, to adjust the amount of Child Support either up or down:


First, the court will review the parents standard of living and specific situation. Next, the parents relative wealth and income. Third, the court reviews the ability of the pain parent to earn. In some circumstances the court will order the parent to pay more than they earn simply because they are underemployed or unemployed. Next, the ability of the receiving parent to earn. This parent could also be found under employed or unemployed and be ordered to pay more than they make. Next, the ability of an incapacitated adult child to earn, or the child’s benefits if any. The needs of both parents and the child as well as the parents ages and whether each parent supports other children.

Child Support Lawyer Free Consultation

It’s always a good idea to have a family law attorney assist you with child support calculations. Should you need any assistance please call Ascent Law for your free consultation (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/utah-law-on-child-support/

How to Handle Business Debt

How to Handle Business Debt

Most businesses will incur some form of debt as a necessary part of operations, whether it’s the use of credit cards or bank loans. But unsustainable debt and interest charges, without increased revenue or investor capital to cover it, can put the health of any business in jeopardy. This section contains a glossary of terms related to “bad” debt, an overview of options for businesses that cannot pay their debts, a checklist to help small business owners prioritize their debt payments and other resources for entrepreneurs dealing with debt.

What To Do When You Can’t Pay Your Business Debts

When a business accrues debts it can be scary to try to address the problem. Creditors may begin threatening legal action against the business or you personally. Depending on how the business is organized and the degree to which you have agreed to guarantee the business’s debts you may have some options regarding how to deal with the problem and your creditors’ ability to take assets or funds in repayment. Your position will also determine whether bankruptcy is a good option to resolve your insolvency. An important exception relates to payroll taxes. Regardless of how the business is organized the Internal Revenue Service will hold a business owner responsible and personally liable for any unpaid payroll taxes. However, in many other circumstances how the business is organized can be quite meaningful.


Creditors and others can hold you personally liable for your business’s debts if you are a sole proprietor and can claim your personal savings in order to satisfy debts. General Partnerships are similar except that there is more than one owner involved. Every general partner can be held personally liable for all of the business’s debts, which can lead to some very uncomfortable outcomes. If you have a Limited Liability Company (or an LLC) as well as a corporation; they do not generally create personal liability for the business’s debts. However, you may voluntarily obligate yourself when seeking a loan or credit since many financial institutions will insist on personal liability as a condition of the loan or credit.
Bankruptcy is an option in many situations where a company is no longer financially viable. A bankruptcy should be carefully planned, however, since preparation can help preserve some of the company’s value or even help it recover. Sole Proprietors have the option of filing for either Chapter 7 or Chapter 13 bankruptcy if they otherwise meet the requirements for these forms of relief. Those who have waived the personal liability protection provided by LLCs or corporations may also need to undergo a personal bankruptcy. Chapter 7 bankruptcy involves the liquidation of all assets, the distribution of the monies to creditors, and the cancellation of the remaining debt. Chapter 13 bankruptcy involves an income-based repayment plan approved by a bankruptcy court. In this case none of the property is sold and no debt is cancelled.

If your business is struggling and may fail or enter into bankruptcy proceedings there are a number of steps that can be taken to protect yourself, the business, and the business’s assets. These suggestions are also intended to help avoid criminal liability. Here are some things to consider – Make sure your taxes are current. Cut your spending. Be honest about your debts. Don’t transfer business property to hide it from creditors. Don’t pay one creditor over another. Keep debt and bank accounts separate. Renew your insurance. Return unwanted leased property. Sell your business. These are just some options to consider.

Business Bankruptcy Lawyer Free Consultation

Whether you want to consolidate, fight debt, negotiate it down or file a business bankruptcy, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/how-to-handle-business-debt/

Child Support and Taxes in Divorce

Child Support and Taxes in Divorce

As the noncustodial parent, you will likely owe child support. The amount is generally established based on Utah child support guidelines calculations, with some room for negotiating a fair monthly amount. In addition, you can negotiate with your spouse to reduce your future tax liability. The actions you take during mediation can put more money in your own pocket during the years following your divorce.


Although you may think you prefer to pay child support than alimony, consider the tax advantages you receive when you pay spousal support. Your child support payment is not tax deductible, whereas your former spouse does not have to report the payments as income. Alimony, however, works in the opposite direction — you can deduct the amount from your taxable income and your former spouse is instead liable for taxes on the payments.

Only one person can claim a dependency exemption and a child tax credit for each qualifying child on a tax return for a given year. Consistent with the law’s child residency requirements, the IRS allows the custodial parent to reap the benefits if your divorce decree is silent on the issue. However, your spouse is permitted to transfer these exemptions and credits to you, which can significantly reduce your tax liability. To do so, your spouse must sign and you must submit IRS form Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. You can negotiate to receive this tax-saving benefit every year or on specified years. Many couples agree to alternating years.


Regardless of the agreement you negotiated about the child tax credit and the dependency exemption, the earned income credit (EIC) is nonnegotiable. If the custodial parent qualifies for an EIC, this credit is nontransferable to the noncustodial parent.

Should You Modify Your Decree of Divorce?

As time passes and circumstances change, some aspects of your final divorce decree can be amended by a petition to modify the original terms. As a Long Island divorce lawyer, I can confirm that modifications are common in today’s challenging economic times.


A divorced spouse who experiences an income loss or reduction of at least 15 percent, for instance, may petition the court to lower child support or spousal support (alimony) payments. In fact, as the recession deepened and unemployment soared, a 2009 study by the American Academy of Matrimonial Lawyers reported that 39 percent of divorce lawyers saw an increase in modifications of child support payments, while 42 percent cited an increase in spousal support modification.

Economic hardship may also cause the custodial spouse to relocate to find or to continue employment. This can result in a request to modify the terms of custody and/or visitation, allowing the spouse to relocate beyond the radius originally agreed upon and an overall change to the agreement, for example transferring custody to the parent who isn’t moving, so the child can remain in the same school.

Rising costs of health care and child care can also be addressed through modification, as can additional expenses such as college tuition that may not have been addressed in the original decree. Of course, not all modifications result from gloomy circumstances. For example, a major increase in income may encourage an ex-spouse to share the wealth by increasing the amount of spousal or child support.

Child Support Lawyer Free Consultation

If you have a question about child support or if you need help with taxes, please call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/child-support-and-taxes-in-divorce/

What Makes a Will Valid

What Makes a Will Valid

The making of a will is a vitally important act, with far-reaching consequences. Since you cannot “take it with you” when you die, having a valid will is one of the few ways you can give back to those you love in a proper, legal manner.


A properly executed will allows you to specify exactly how you would like your estate handled upon your death, including how and to whom property should be divided, who should watch over your minor children (if any), and who should manage the administration of your estate. While the rules for making a will vary from state to state, certain formalities must be met. Generally, a will is not valid unless it fulfills the following requirements.

A person must be of legal age to make a will. Most states consider you to have legal capacity if you are 18 years of age or older, have been lawfully married, or are a member of the U.S. military.

In most states, a person has ‘testamentary capacity” if they have a sound mind, meaning the testator must know that he or she is making a will and its effect; understand the nature and extent of the estate; and understand that he or she is disposing of property and assets.


A person has intent to make a will if at the time of the signing, he or she intends to make a revocable disposition of property in the event of their death.

A will must be voluntarily entered into and signed by the testator. A will executed by a person who was coerced into signing the will, or who signed the will under duress, is not considered to be a valid will.

A will must properly dispose of the testator’s property. This includes listing all property and assets and properly distributing them among friends and family according to the testator’s wishes.


A will can be handwritten on a single piece of paper or elaborately typed within multiple pages, depending on the size of the estate and preference of the testator. It must also be signed and dated by the testator in front of two “disinterested” witnesses, who must also sign. Disinterested witnesses include those who will not personally benefit under the will (like beneficiaries). Because there may be other formalities for making a valid will, it is important that you check the Estate Planning Laws of your particular state. You should also make sure to choose the appropriate legal guardian for your minor children and appoint a trusted executor to tie up your important affairs.

Will Lawyer Free Consultation

When you need legal help about a will or estate, please call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/what-makes-a-will-valid/

Utah Law on Alcohol

Utah Law on Alcohol

The alcohol laws of Utah regulate the selling and purchasing of alcohol in the State of Utah and are some of the most restrictive in the United States. A person must be 21 years old to buy or consume alcohol in the state of Utah.

The Utah Department of Alcoholic Beverage Control or UDABC has regulated the sale of alcohol in the state of Utah since 1935. prohibition ended in the United States in 1933. Utah is one of 18 “control states”. This means that the state has a monopoly over the wholesaling and retailing of some or all categories of alcoholic beverages within the state’s boundaries.


Current Utah law sets a limit of 3.2% alcohol by weight in beer sold at grocery and convenience stores and at establishments operated under a beer only type license. Beer only type licenses cover taverns beer bars and some restaurants. Beer over 3.2% by weight is available in state liquor stores and package agencies in at clubs and restaurants license to sell liquor. In commercial facilities, the time at which alcohol maybe service limited. Alcohol may not be sold any later than 1 a.m. under any circumstance.

Utah has many laws which are unique to its borders. While Most states allow their grocery stores to sell at a variety of alcoholic products, Utah restricts their markets to only sell packaged beer. Liquor and wine can only be sold at the state liquor stores. Other Utah liquor laws include time restrictions on when alcohol can be purchased. Most restaurants, taverns, clubs, and other establishments selling liquor only allowed to sell alcoholic beverages from 11:30 a.m. to 1 a.m.


there have been bills introduced in the state congress to allow chain restaurants to obtain a master license for all of their their locations instead of having to apply for a liquor license at each individual location. This is hope to speed up the process of obtaining liquor licenses when otherwise there are many locations of the same restaurant applying for a single license every month.

Utah Alcohol Certification

Utah alcohol certification has been required in the state since 1987. The hospitality industry started offering this training prior to the Inception of the state mandates, which actually helped to influence the creation of the legislation in the first place. The National Restaurant Association and the American hotel and motel Association were the groups that first developed the programs that the hospitality industry and Utah used prior to the state La creacion. Now, everyone who works in an establishment that serves alcohol for on-premise consumption is required to take an alcohol training and education seminar. This includes employees that will serve alcohol, as well as managers, and supervisors of those employees.


The Utah alcohol certification program is required to be repeated every three years to keep certification current and educate people on changing laws and rules within the state. Owners of established that serve alcohol for on-premise consumption only required to take the course if they also work with a supervisor, manager, or server in the establishment. If they’re completely hands-off, and only act as an owner, the seminar isn’t required for them to be completed.

Alcohol Lawyer Free Consultation

If you have additional questions about Utah alcohol law or need legal assistance for a hotel, motel, bar, Tavern or other business that needs an alcohol license, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/utah-law-on-alcohol/

When Your Minor Child is Pregnant

When Your Minor Child is Pregnant

If your underage daughter becomes pregnant, there are understandably a lot of issues that will cause significant heartache, stress and possible pain. Despite all of the emotions that you might be feeling upon hearing the news, it is important that you maintain a clear head and sit down with your daughter regarding all of the legal options that are available to her regarding her pregnancy.


The following is some important information that you should consider discussing with her – Utah abortion laws. If your underage child decides that she wants to have an abortion, you must understand that in the state of Utah, your parental consent is not required for her to make that decision and obtain the procedure. Even if you disagree with your child’s decision, you cannot legally intervene. However, you can have an open discussion with your daughter to make sure that she understands the decision and that it is her intent to go forward with it.

Adoption considerations. If your child decides to give birth and give up the child, there are numerous adoption agencies with which you can place the child soon after birth. Your child should understand that this decision is not reversible and she will likely never be a part of the child’s life. There is also the option to allow the child to choose the parents that will adopt her child, which is likely to be more legally complicated but does offer greater control. The father’s rights. The father of your daughter’s child may have certain rights that could add some legal complications. You may need to obtain the consent of the father before placing the child for adoption. If your child decides that she will raise the child, the father may be responsible for child support payments.

Do Grandma and Grandpa Have any Rights to Visitation in Utah?

Divorce affects all who are touched by it and grandparents are among those likely to be injured. Grandparents are often left out in the cold in terms of custody and visitation. While many jurisdictions are slowly granting grandparents rights to see their grandchildren, Utah is far from being on the cutting edge in this area. Nonetheless, Utah does have a statute that deals with the rights of grandparents in certain situations. This issue is ripe for exploration and for setting positive precedents for the grandparents of the state. There has been a case about 2 years ago that struck down the law. Recently in a case the judge refused to grant grandparent visitation. This is a tricky issue that you should talk to a lawyer about in person or over the phone because the unique circumstances of your case will make a big difference in the outcome.


Grandparents are up against a public policy of allowing parents to raise their children free from intervention by those they choose to exclude. When one or both of the parents is deceased, grandparents have a stronger position in claiming rights to visitation being in the best interests of the grandchild.

If the parents are alive, grandparents face more difficulty in winning rights to visitation. Grandparents who wish to seek court ordered rights need to establish a meaningful relationship with their grandchildren. If they are not allowed to see grandchildren, they should keep a detailed record of their attempts to contact them. Birthday cards, phone calls and other attempts at contact can help in this type of battle.

Family Lawyer Free Consultation

If you have a question about child custody question or if you need legal help with family matters, please call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/when-your-minor-child-is-pregnant/