0:00 I'm your host Kevin bemel and we are here every Wednesday morning at 10:00 a.m. Pacific time to talk about matters related to building and running a business our professional lives Building Wealth all of the things that give us the resources to live the kind of life that we want to live so over the last several weeks I've talked about a number of issues related to starting a business creating your entity dealing with this new um b b business information um uh report
0:35 that you need to um submit to finsen um other things like that and I I invite you to you know go to our um YouTube channel um at um uh the way to wowow at youtube.com theeway to wowow and you can take a look at some of those uh past episodes um so today want to talk about a a a subject that doesn't seem to get covered very much or talked about very much and that is maintaining your entity
1:10 so once you establish um an LLC or a corporation there are things that you need to do in order to uh keep in force the kind of protection that these these uh entities give you so just like as a natural person we have to get sleep we have to eat we have to exercise right in order to stay healthy so we don't need to exercise um our Corporation um but there are a number of tasks and filings that we have to attend to um quarterly uh
1:48 annually some in some cases every other year in order to make sure that um our entity stays viable so um we're going to go through the the the um most likely ones today this is not an exhaustive list um depending on the kind of business that you have there there certainly could be others um it just you know it really depends but I want to put this on your radar so that you you're you're thinking about this especially here toward you know it's kind of toward the beginning of the year um you know you may be thinking about filing your
2:24 personal tax return that sort of thing so um there are you know a number of of issues to consider um with respect to your business so you know maintain your your uh business entity and um as is um always the case everything we do here relates to the three pillars of attainment we're dealing today in the finances Realm of the Pursuits pillar and if you're wondering what this whole thing is about again feel you know please go to my YouTube channel I have a whole show talking about the three pillars of attainment where it comes
2:59 from what it's about um and uh and and you know and and by the way if you ever have if I ever mention you know a particular video on my YouTube channel and um and you can't find it feel free to um drop me uh a note in in one of our social media channels or shoot me an email um I'm I'm happy to send you a link um to a particular video If and and by the way same goes if if you're wondering if I've done show on a particular topic um let me know and if I have I'll send you the link and if not
3:36 um I'd be happy to put together a show on that topic assuming it's you know appropriate for what we're doing here so these are the uh filings and tasks that we're going to talk about uh today and they are periodic information update you'll see what that is um updating your registered agent licensing corporate minutes payroll taxes 1099 and W2s Federal state income taxes and finally insurance so these are the most likely ones that you'll be dealing with in your business and again I want to emphasize this is not a complete list um
4:11 your specific business may have um others uh are the things that you need to to deal with so okay so let's let's start with the first one which is uh periodic information update so I'm going to go to um this uh particular uh website here and I thought I'd be able to copy it but uh obviously not okay well so um each so if if you if you um haven't seen my uh my show on creating
4:46 an entity so um you you you need to know that um entities are um uh created under state law so each state has its own um rules um although they aren't there aren't you know huge differences but going from state to state but there are um some differences okay and so I'm gonna I'm going to share my screen and go to um a list yeah here it is okay of
5:21 um of States so Most states require an annual report or an every other year report if you have an LLC in a corporation and by the way that Corporation it could be um a C Corp it could be an S corp it could be a corporation for a um a nonprofit entity it doesn't it doesn't typically doesn't matter now if it's a nonprofit many times um the fee for filing the annual report is lower than it would be for a for-profit uh Corporation but but that doesn't um
5:56 negate um that an annual report has to be fil so here at this this is a a website it's called corporate net um I you know I found this while I was doing some research uh for the show and it gives you a list state by state of what you have to file um for um a C corporation although I suspect it's probably true of an S corporation as well so for example um in California a statement of information has to be filed every year on the last day of the anniversary month
6:33 meaning the anniversary month of when the entity was formed okay now California also requires an annual franchise tax report now notice in Alaska you need to do a report every two years and it's due by January 2nd okay so it's different um for different states um let's see here's a Nebraska requires a biannual occupation tax report whatever the heck that is um and and and also an annual benefit report now I I've never um done business in Nebraska so uh you know candidly I don't
7:08 know what that is um but it's you know obviously something you need to do by March 1 right so this is a good resource to look to in terms of what you need to do um in your state for your entity and by the way you notice that Washington DC although it's not a state but it it has its reporting requirements as well and you know let's let's look is Guam on this list just curious uh no they don't have Guam or Puerto Rico um but they probably you know if you're in a a US Territory it's likely that you have
7:44 similar um requirements so um if you have an LLC so the requirements are a little bit different so here in California you have to do a statement of information but only every two years not every year like a c like a Corp Corporation but you still have to do an annual franchise tax report okay that's that's basically your your state tax return okay Florida you have to do an annual report for an LLC um Arkansas every year by May 1 um and you know now interestingly enough for an
8:20 LLC New Mexico there's no filing requirement nor for South Carolina right isn't that nice those are um business-friendly um uh you know places uh to be so um what is involved in um filing a statement of information well it's it's again it's going to vary from state to state um but typically you'll go to the website for the Secretary of State for that state and you'll you'll look for the for the business filing so let's just do one kind of U um let's see let's do um
8:58 Arkansas yep here we go arkans okay Business Services I think that's where it is yeah okay so gonna go ahead and share my screen and here it is Arkansa Secretary of State okay so this is you know I I this is just you know pretty typical okay so for current businesses um here's here's your annual report now this this says for for uh Partnerships but here corporations LLC nonprofit online filing
9:34 system right and and here you go here's a whole list of things that you can file so a domestic for-profit articles Corporation certificate you know change of registered um we're going to talk about that in a minute but um here's all the list of things that you can file um online now what's interesting is and I I recall this now because I was helping someone with uh an Arkansas entity um the the you you won't find the a link here for filing the annual report um but
10:09 you can file the annual report online so um what I recommend is that you um you know you do a search for that uh here it is search right here uh file annual report okay and see what we get okay nonprofit annual report here we go annual report for domestic foreign LP da d d da right and there you go okay so here you get the list here's for limited partnership limited liability partnership oops wait limited
10:44 partnership oops that's that's the wrong one let's let's go back here um let's see non-foreign Cooperative nonprofit for current businesses here's where you you do your taxes online Partnerships H corporations okay here you go and types of Corporations frequently ask questions da da okay partnership General BL liability partnership Corporation here you go so this gives you the information on oh this is this is for how to file it okay
11:21 uh no now I can't silly me I can't figure find where I um filed that let's see let's try one more place enotary UCC current [Music] businesses okay this here's for filing your your franchise taxes and annual reports part oh that's so weird um franchise business and research okay well um I I know you can do it online because I helped someone do it but I I don't want to take more time
11:56 for this you you you you may have to hunt around a little a little bit unfortunately um but um it is important to make sure that you comply with your State's um periodic updates okay next um registered agents so this is your agent for service of process so um any entity Corporation or LLC has to have either a live person who will accept service of a lawsuit or there are sort of like corporate um agents for service of process that they're basically in a business of accepting um service of a
12:33 lawsuit okay now you don't need to update this every year however you do need to make sure that whoever your agent for service of process is if it's a live person that that person is still alive right so if the person dies um you're going to have to update the information about your business um as soon as possible um in order to make sure that you know there is someone there who can um accept um service so um when you do your annual filing okay you
13:08 you know maybe you're your own agent for service of process so you you're not going to change that but if for some reason um you know you're going to have someone else in your company be the agent for service of process so now um you know you you you can change that name now if that person were to leave the firm or pass away or something like that so you can't wait until the next annual or biannual filing in order to replace that person you need to do it um at the time that they leave okay so this is this is
13:43 not necessarily periodic per se but it is something to to verify and make sure that the person is there okay next um your your entity's license and designated officers license so if you're um in a business that requires a license to operate and that could be for example um a real estate company so in Most states um in order to operate a real estate company there has to be a designated officer who's a broker okay
14:22 and um that license needs to be periodically reviewed so let's take a look at you know my home state here we go California Department of real estate okay here we are okay so um here's Here's the the um here's the website for the California Department of real estate the Dr okay licensing and and they have everything can be done online here okay so let's
14:59 look at um renewal oops Yeah renewal of uh designated broker license okay okay so broker license renewal application here you go okay and there it is okay so if you're renewing your broker's license you have to well this this is for the for the live person I believe right yeah this is for the live this is for a live person okay so a designated broker officer um there there's the license for
15:34 your company but then there's that the person who's the designated officer has to be a licensed broker as an individual himself so that's why I say um in in in both of these um the entity's license and the designated officer's license so that application I just showed you is is for the um for the uh the person himself okay and then um you're going to have to um renew here we go officer renewal application okay so this is the officer
16:11 renewal application so if you're operating as a corporation right this is where you renew your corporate basically your corporate license but that this corporate license has a live person behind it okay so I use the um example of a real estate broker but the same is generally true if you're in any kind of Securities business you have a principal who is um supervising the business that person's license has to be periodically renewed if you are um selling uh life
16:47 insurance so Most states have you have to be licensed to sell life insurance um but also you may have a business now here in California it's legal to um grow and dispense cannabis okay so that license also it's it's not they don't Grant the license at you know one time and then it's good forever no it has to be periodically renewed and by the way you know states do this because they want to get Revenue I mean they they want to make sure that you know people are keeping up with continuing education
17:22 and that sort of thing um but but also they they want Revenue Okay so whatever licenses either your The Entity itself holds or that people working within the entity hold you need to make sure that they're being um that they're being renewed okay some some of them have to be renewed every year sometimes every two years real estate licenses in California are good for four years so it really just depends you you should you should keep track of these and I I keep
17:57 a um uh a a um spreadsheet on all the licenses that relate to my business and when they have to be renewed uh how much continuing education is required to renew them so I keep up with that okay and and and don't fall behind and by the way renewing the licenses may be more than continuing education submitting a farm and paying a fee you you may have to submit certain data about your business I know that's the case with my professional fidu series license so we're required to report annually um to
18:32 maintain our license even though the license is renewed only every two years okay so make sure you know all of the things you have to do to keep your licenses in good standing and if you have any questions you know call the the agency that issued the license the people there that they're there to um help you do that now some will be more willing to answer questions than others i' I've had situations where the the person I'm talking said well I can't advise you on that blah blah blah blah blah um which which seems kind of
19:07 strange because they're responsible for compliance um and if that's the case find someone else in your profession who's more experienced than you are and ask them the question but in most cases the people that you talk to are going to um help you do whatever you need to do to comply that's their job is and and the fact that you're being proactive in in seeking to comply um just makes their life easier okay so that's that's licenses all right next okay corporate minutes so if you
19:46 have this is specifically for a corporation which is why it's called corporate minutes so um a corporation to um to maintain um itself needs to have have an annual shareholders meeting and an annual director's meeting now you may be the only shareholder and the only director in your corporation which makes having a meeting really easy because you're just meeting with yourself um it's just it's fine it's just make sure you you know document um those meetings with minutes now um you know you can
20:21 have your lawyer do it you these days there are paral leals who can do this it's pretty simple to keep up with them um but make sure you do it now in the old days you would have a corporate minute book it was an actual notebook and you would you know file minutes and other documents in in that book um these days I don't think they do that anymore um you can keep all of these records online you know and and have a file for you know uh for your entity corporate compliance that sort of thing um but you do want to make sure um that you you do
20:59 have minutes you know showing that you held your your annual meeting and and what transpired now there may be no business to transact and that's fine um so you can just say you know annual meeting was held on such and such a date there was no business to to transact um the meeting was adjourned okay and okay so you did it um and same with the director's meeting okay um and it may sound silly well why do I have to document a meeting at which nothing happened um it's it's it's part of the maintenance of of a corporation okay and
21:35 um you know again these rules vary from state to state so um if you have any questions about them talk to a lawyer in in your state who is familiar with these kind of entity maintenance issues okay and even if you have to pay them a little bit of money um you know maybe you have to buy an hour of their time it'll be worth it um because that way you'll know that you've you've complied and it's it's nothing you have to worry about all right next payroll taxes so um payroll taxes
22:13 um need to now the payroll taxes relate to having employees not independent contractors but employees when you have employees you're obligated to pay payroll taxes on behalf of those andfor for those employees okay so payroll taxes would include um FICA which is um the federal Insurance contribution act which is basically Social Security okay also Medicare um is paid Medicare taxes are paid quarterly um and and and those
22:49 those are the two oh and also um uh federal and state withholding um for for income taxes okay okay so those are the three things that you need to deal with quarterly um uh for your payroll taxes and you'll you you need to file form 941 so you see this link here and I'll go ahead and and and bring this up uh here we
23:26 go okay so share screen employ okay so this is the Internal Revenue Services um website and this is about employment taxes okay here's and there's all the resources you need you can file them electronically the the the forms anyway um and um uh you can also pay them online you just have to have an account uh to do that okay and if you if you saw
24:01 my show on entities you remember this employer ID numbers right you can get one of those online as well okay and and this gives you all the information you basically need for a small business and for that matter large businesses corporations Partnerships Etc um in order to comply um so so this is here now you may want to have a bookkeeper or an accountant who's who's um uh familiar with these things um take care of it for you that's certainly fine okay here's by the way here's you can set um you can have you can set up to have uh calendar
24:37 reminders sent to you um by email or um or text okay so you don't miss um a deadline okay and um the quarterly dates are are right here April 30th July 31st October 31st and January 3 notice that they're a month after the end of each quarter okay so the first quarter is January through March payroll taxes are due by April 30th um April through June July 31st Etc okay
25:12 so that that's what you do here now if you have no payroll you don't have to worry about this but if you have payroll then not only do you need do you need to do quarterly payroll returns but you're going to have to do an annual return form 940 for what's called feuda federal unemployment um tax assessment I think it is okay so whereas these other types of payroll taxes are paid quarterly uh unemp federal unemployment taxes are paid annually okay and so um and and the
25:50 deadline is um I believe January 31st for that so when you're filing payroll taxes for the fourth quarter that at that same time you need to file your form 940 so and and in in previous businesses that I've had um I've both done them myself and I've had um my my uh accountant do it a lot of accountants have a bookkeeper on staff so it's not like you're paying you know the full accountants charges to have this done they'll have somebody on their staff do it so it may not be that expensive by the way if you have a payroll service so
26:26 part of that service should be the filing of all your all your payroll returns so if you have you ADP is probably the best known uh payroll service so um you know the ADP will go ahead and file your payroll tax returns and and they'll request the funds in order to pay the payroll taxes okay so while in some cases payroll taxes are deducted from your employees paychecks as you know right um if you remember the famous Friends episode who's this FICA who's
27:01 getting all my money right um so but um when when you're when you have employees your employee pays half of the FICA and half of the Medicare and you pay the other half okay so um and and I I believe in total it's about 7.65% so if you've got an employee who's making um you know uh 5,000 a month month so you're going to be paying $300 and something dollars a month on top of that 5,000 for your share of FICA and
27:36 Medicare okay so just um uh keep that in mind all right so again payroll taxes and pay and and and payroll tax returns all right similarly in ter because of U in terms of people who are working with you um you need to file uh 101 99s and W2s okay now this is a once a year um a once a year filing that needs to be done a once- a year task okay so um now this
28:11 is just the real Topline stuff about this so this is not advice on who may be a um an independent contractor who has to be an employee those rules are very complex they vary from state to state and you really need to look at these rules to determine how how it's proper for you to employ someone okay and the reason I say that is going back to payroll taxes so for many years the IRS has been um very focused on doing payroll tax return Audits and the reason
28:49 is because in terms of money per audit hour payroll tax return audits yield a higher dollar per audit hour than auditing income taxes okay because um oftentimes what the IRS will do when they do an audit is they'll look at the people who are working at the company um the ones who are 1099 and they will determine that indeed they're not independent contractors they are employees and then they will tag the business for all kinds of back payroll taxes Okay so
29:28 um in general you need to send a 1099 for anyone who did work for you non-cp I should say non-corporate entities that did work for you that was that that you paid them over $600 okay whether it's an individual or a business is irrelevant okay the only exempt entities are um are corporations okay so if you paid a corporation $1,000 you're fine okay by the way though if if you paid if your lawyer has
30:05 a professional Corporation and you paid your lawyer $1,000 that Corporation is not the type of corporate entity that is exempt okay so you would still have to 1099 uh your lawyer okay now not only do you need to prepare a$ 1099 for all non-corporate entities that you paid more than $600 to but then and you have to send those off and the deadline is uh generally speaking January 31st then you have to file form 1096 which is an annual summary and
30:40 transmitt of what are called us information returns what's a us information return that's a 1099 okay so this needs to be filed I believe the deadline is February 15th okay so presumably you know once you've got all your 1099s done it's no big deal then they don't you don't need another month to file this annual summary okay but do make sure that you file this okay um this is by the way how the IRS knows that someone has received this money and
31:15 that's why they want you to file the 1096 so that they can cross reference the re the tax returns of the people who receive the 1099 and make sure that they reported that income now let me quickly add if you if someone did $500 of work for you okay you don't have to send them at 1099 however that does not mean that the $500 is exempt from their income it's not it just means you don't have to file
31:51 an information an information return on that person okay so if you you received $500 in a payment from someone and you didn't get a $199 you you may be tempted to say well I'm not going to report that income well okay I mean look it's it's it's your decision but just understand the fact that you didn't get a 1099 does not mean the the income doesn't qualify as income for income tax purposes it does okay it's just that it's harder for the IRS to know that you were paid that money okay so I want to be clear about
32:26 that this is just a and and by the way there there was um uh discussions I believe it was last year about lowering this figure um and there was quite a a lot of consternation over that um because lowering it would would in essence catch a lot more people and you know was the IRS really going to you know audit people who were making just a you know a$ few hundred um on a 1099 um the reality is most of this stuff is done by by computers now um and and and so I
33:01 think that's what what the uh the IRS had on its mind nonetheless I I checked on this um a few days ago it appears that the limit is still $600 over $600 and so that that hasn't changed but that isn't to say it won't change you know next year so okay so this is for people who worked as independent contractors if you have employees and and you've probably gotten a W2 before so your W2s need to be filed um or need to be prepared and and distributed to your employees okay and then an annual
33:38 transmitt of wage and tax statements what is a wage and tax statement that's a W2 so a W3 needs to be filed with a copy of the W2s okay and that's how the IRS knows what your employees were paid okay um you might say well didn't I file pay roll tax returns yes you did okay um but the IRS wants this summary of what the per what the tax what the employee got for the year um because it's easier to cross reference that with uh their tax return and of course your employee has
34:14 is supposed to report everything on the W2 when they prepare their personal tax return okay and I think the deadlines are the same I think the W2s are due by the end of January and the W3 is due mid mid-February basically okay so um these are these are these are annual tasks annual filings that have to be done it's part of maintaining your entity okay and um um so uh you know kind of make sure that that's taken care of and and again um if you have a payroll tax service so
34:49 they're most likely going to issue W2s and and F and file a W3 for you now they may not handle 1099 it depends on um what the services that you that you got okay so um generally speaking um I I I think payroll tax services don't handle 1099s um but that but so then you know either you're going to have to do it or someone your in your organization's going to have to do it or you know again you can contact your accountant your accountant may have a service where they
35:24 prepare 1099s for you okay but uh one way or another these need to get done okay next all right federal and state income taxes so um federal federal income taxes applies to anyone you know who has an entity in the United States okay um state income taxes though only apply in states that have a state income tax current as of 2023 there was no state income tax in Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington
36:00 and Wyoming so what is that 1 2 3 4 5 6 7 8 there's nine states that don't have a state income tax okay so for those in those nine states um you don't have to worry about filing a state income tax return for your entity okay but um in all in the other 41 you do okay now for for a corporation your probably and I say probably because there are you know certain specialty types of Corporations where there are variations but the the
36:35 most common tax return for for a corporation is Form 1120 okay now um um that's and that's for C corporations by the way if you have an S corporation notice it's 1120s okay now llc's generally speaking are treated as a corporation or a partnership which is form 1065 okay now if you have a single member LLC so that may be treated as an ESC
37:10 Corp okay um so it it it just kind of depends and this is beyond the scope of of this show um and and you're probably not going to prepare your own tax return for your entity um having said that this is something you want to discuss with your accountant okay maybe your lawyer too it depends but but certainly with your accountant or who's ever going to file your return for you okay um I I don't recommend filing your own um tax
37:46 returns um where there while there are many things you can do yourself like fi filing a statement of information um and and and you know potentially even um you know handling your own payroll tax returns if if you have very simple payroll um once you get once things get more complicated and there's I'm not aware of any um Federal and and state income tax return that isn't complicated for an entity um I think at this point you know you you want to have uh a professional Do It um in many cases it's not it's not that costly um and and it's it's it's well
38:22 worth it um because you'll you know be able to sleep better at night frankly okay um so you can look up information about these on the IRS website and also on your State Tax Collector's website so here in California that's the Franchise Tax Board um and you know other states have different names um you can look them up and just get some general information okay but um you know when it comes to filing the return um that's something to discuss with your um you know with your accountant now for a for
38:58 an entity that has a calendar year as its operating year so then tax deadlines are are the essentially the same as they are for personal income taxes so your taxes are due by April 15th along with your return you can get an extension but the extension is the an extension of time to file the return not to pay the taxes so if you have taxes due you need to pay them but you can get you can get um an extension on on the deadline to file your return if you don't pay your taxes by the deadline so then you'll pay
39:33 penalties and interest for late payment okay now if you're if you're a C corporation with a fiscal year so your tax return generally will be due three and a half months after the end of your fiscal year so if your fiscal year ends March 31st your tax return is due April May June July 15th okay if you see how that works okay so um again I don't want to get too much into the Weeds on this
40:08 this is for you to discuss with your accountant but obviously you want to have filing your tax return um on your list of items in in in terms of maintaining your entity okay next okay insurance I think this is the last last uh maintenance tasks we're going to talk about here today so there's lots of different types of insurance and you want to be you want to have your coverages um reviewed periodically now that doesn't necessarily mean annually
40:44 although you may choose to have it reviewed annually okay certainly anytime there's a significant change in your business you you want to talk to to your insurance agent okay and while this is not an exhaustive list but but I would you know highly recommend that you address at least these four categories okay so one is Property and Casualty that's damage like if if you have equipment if you have a building um you know Property and Casualty Insurance is
41:21 what will cover damage to your property okay liability it would be a situation where let's say you have a restaurant and someone slips and falls and hurts thems in your restaurant now you have a potential liability and and that's the kind of uh coverage you need liability coverage for for those types of accidents by the way if you have employees and they drive their own cars when they're doing activities for your business okay they're
41:56 their own car insurance may not insure you in fact probably does not insure you okay so if your employees are using their own cars in the business you need to have a type of coverage it goes by various names um non-owned Auto or non- hired Auto something like that in other words it's it's Insurance on someone who's driving a vehicle that your entity does not own okay so that way if they get in an accident let's say they're let's say they're going to the bank okay and and
42:33 they get into um an accident um then um uh um and and the person who got hit by them um finds out that they were taking care of an errand for your business so that person is likely to sue your company as well okay because they were they were in your employee at the time that that your employee hit them and so they're going to they're going to go after you especially thinking that you know you're a business you got a lot of money so there's lots of money to get
43:09 from you okay so make sure when you discuss liability you you are you know you talk with your insurance agent about all the areas that might give you exposure okay that's the insurance term um make sure you cover all of those areas okay dno Insurance directors and officers insurance if you have a corporation um you have directors and officers now you may be the only director and officer of of your firm okay um but you may still um want directors and officers Insurance that's
43:44 something discuss with the agent certainly if you have um people who are employed by your firm who are not shareholders of the firm at that point you probably need dno coverage okay so um dno coverage is um insurance that covers you for the acts of directors and officers okay that that may result in some kind of loss okay and these it's more and more common for uh companies to have dno insurance so it's you know it's
44:20 it's well worth talking to your insurance agent about it and then finally profession liability insurance so if you are in any kind of profession law accounting real estate Insurance Securities okay all of U Medicine by the way all of these typically necessitate having a professional liability policy okay whether and in real estate it's whether you're a broker an appraiser a property manager okay so in some cases it's called um Eno Insurance errors and omissions insurance in some cases it's
44:57 called malpractice insurance that's typically what you hear for for like doctors and other Health Care Professionals but whatever name it goes by it is insurance so that if you make a mistake in the providing of your services okay and you get sued as a result professional liability um is there to help protect you now a lot of times well not a lot of times I shouldn't say a lot of times sometimes you know you'll get sued and and the lawsuit is is complete nonsense
45:34 okay the the issue though is that you still have to defend yourself and professional liability coverage typically will pay for the cost of your defense okay so if you have to pay 25 50 $100,000 to defend yourself that's a big chunk of money and that's one of the reasons why you want to have professional liability insurance so even even if you win it can still be very costly to be sued um under professional liability okay and here's here's the
46:10 thing let's say you're a real estate agent okay let's say you're a real estate broker and you have a corporation under which you do business okay so as we were talking about in the beginning in terms of maintaining license es okay that corporate entity protects some things protects you in some circumstances but it does not protect you in terms of professional liability because the corporation needs to have a designated officer broker and that designated officer
46:46 broker that natural person is liable for professional liability okay so even though you have a corporation and that could protect you let's say you're you're you know showing a property and someone slips and falls and hurts themselves while you're showing a property okay that's not a professional liability issue that's a standard liability issue so in that case a corporation May afford you some protection okay but if if you get sued because um let's say you had a client who who decided that um you misled them
47:24 about the the amount of money they could get for their property that's now a question of of professional ability professional liability and um your corporation will not protect you in thata in that situation in most cases okay um now I should mention I'm of course I'm not giving you any legal advice I'm just telling you generally how Insurance works for your specific situation you need to talk to your lawyer and your insurance agent and give them the details of your business so they can see
47:59 that you're properly insured um having said that if you are in a profession professional liability insurance is an important one to to look into and um in many in many cases if you belong to some sort of Professional Association so they will have a pervert provider a professional liability insurance that will so you can get the coverage less expensively than you might if you just go as an individual and and and get it from you know your insurance agent so so do look into that as well okay so those
48:36 are the various issues for maintaining your entity and um this is uh if you have any questions as always feel free to to um drop a question in our social media or you can always send me an email I'm happy to to to respond to your questions um if it's of a legal accounting nature I'm going to let you know that I'm not a lawyer or or an accountant a CPA and I'm going to refer you to you know your own advisor um but um if it's a business question um I'm happy to uh you know answer that
49:11 question if it's something that you know several people um may be interested in the answer do do post it in social media um because that way everybody can benefit um from from your question okay and this these these links will all in the show notes and uh yeah we got just the legal stuff here and that's it okay so we're going to close this down all right so we're not we're not quite at an hour today but uh you know no no sense in uh belaboring the point um so that is this that is our show for today and this is our last show for this week so before signing off I want to wish you want to thank you for joining me um and if you
49:47 joined me multiple times this week thank you extra amount and uh wishing you a wonderful rest of the day and a great rest of the week and hopefully we'll see you next week 10: a.m. Monday for trust in Estates weekly 10:00 a.m. Pacific time Tuesday for um business lessons from the military and then seven days from today at 10: a Wednesday for the next edition of people making money so thanks again for watching and have a wonderful rest of the day signing off Marie You Are My Bell