General Counsel Solutions for your Small Business
All businesses face issues requiring ongoing legal support as they grow. Most, however, do not have the budget to hire a full-time attorney. Use our Your General Counsel services to bridge the gap.
Business Subscription Services
Your General Counsel
Because our business is YOUR business
All businesses face issues requiring ongoing legal support as they grow. Most, however, do not have the budget to hire a full-time attorney. Use our Your General Counsel services to bridge the gap. Our role is that of a strategic business partner, instead of a mere project attorney, shifting the focus from our business objectives to yours. We take the time to learn your business, grow with your business, and eventually transition your business to your in-house counsel when you hire one. Our mission is to provide the legal advice you need to grow from start up to industry leader. For those businesses not ready for ongoing services, we are launching Your General Counsel - Start-up service to assist with your unique business needs.
Services Include:
1-hour monthly face-to-face or virtual meeting
Unlimited Phone Consultations - 30 minute duration, scheduled at your convenience
Contract review and consultation - up to 5 a month
Contract management – meet your renewal deadlines
One monthly project or Original contract generation
25% discount on all additional firm services
Plans start a $750/Month*
*Plans are individually tailored based on business need following an initial 30-day business assessment. The initial assessment fee is $1500.
Contact us today to discuss your options!
Phone: 724-550-6970
Email: info@theskeenfirm.com
Sole Proprietorship or LLC – How to go about Small Business Formation
There is no time like the present to start your business. With a favorable tax environment and technological advances that act to reduce barriers to entry, working for yourself and calling the shots has never seemed more attainable. For many, the ideas come natural, but every other step in the process is foreign. There are filings, meetings, fees, and an endless list of other associated regulatory measures that keep many from pursuing their dreams. However, with sound, affordable legal guidance anyone can get their ideas off the ground and chase their passions. (Think of how much more successful the Pet Rock would have been with the Internet.)
Formation is perhaps the first major hurdle for any new business. Each designation recognized by the Commonwealth comes with a variety of benefits and potential issues. Making the right determination early will set the stage for long-term success. The following discussion is aimed at clarifying two of the most popular and practical formation solutions.
Sole Proprietorship – This option is the least costly if going it alone. There are less regulatory hurdles, as the government recognizes you as the business, so there is no need to maintain separate financial accounts and accounting methods. The same holds true for taxes, as you will get taxed as self-employed. Potential issues for owners in this structure are sole liability for all business debts meaning you are subject to personal lawsuits for business related activities.
LLC – Limited Liability Company (LLC) is a structure that protects the individual manager/owners/operators from most personal liability for debts and lawsuits brought against the business. An LLC is also considered a pass through entity for tax purposes, depending on the elections during formation, which can shift some of the tax burdens. There are potential significant drawbacks related to filing fees to form an LLC with the state. Once formed there are meeting requirements and ongoing regulatory fees, as well as maintaining operations as a going concern under state law. One major requirement is the separation of banking accounts and other business records. Failing to follow through on these requirements could cost the business at tax time, which is a major setback in the near term and potentially the long term.
While the above addresses a laundry list of benefits and potential issues, it is in no way comprehensive. At The Skeen Firm, we are committed to answering all of your business questions in depth and ensuring your business journey starts with solid footing.
Call us today, at 724-550-6970, or email at info@theskeenfirm.comto schedule a consultation to discuss affordable solutions to start your business and pursue your dreams.
*Disclaimer: The advice provided is for informational purposes and is not intended as legal advice. It should not be relied on, nor construed as creating an attorney-client relationship.
Oil and Gas Lease Expiration – Know your lease, know what happens.
Without question the Shale Revolution has helped propel Pennsylvania’s economy since it’s earliest days in the mid 2000’s. The fuel driving this expansion was asset acquisition in the form of leases, predominately acquired from 2009-2016, at ever increasing bonus prices.
Without question the Shale Revolution has helped propel Pennsylvania’s economy since it’s earliest days in the mid 2000’s. The fuel driving this expansion was asset acquisition in the form of leases, predominately acquired from 2009-2016, at ever increasing bonus prices. As lessors gained sophistication, the market, and terms within the lease itself, evolved. In the early days, leases were standard forms containing a primary term of five years, with the option for the company to extend for an additional five years. As competition intensified, companies opted to offer Landowners leases with just a straight five-year primary term. The intent of these leases was that their acreage would get drilled and included in a unit or that ever-rising bonus prices would result in a second windfall at the end of the term.
What was not anticipate in this period, specifically from 2013 to 2016, were protracted natural gas prices, mergers, defaults and other outside factors that would stall the market and muddy the market outlook. Indeed there are many more years of development across the shale play in Pennsylvania, but the market is at an interesting juncture. For the next year and a half, the potential acquirable land assets are high and coincidentally so are landowner bonus expectations. The one variable preventing the next boom-leasing wave is market prices as they dictate cash flow and CAPEX.
The main question is what options are available to owners of the Oil and Gas Estate? The answer lies in the terms of the original lease executed with an operator. Should that lease have an extension clause, the landowner can sit back and collect another “bonus” check should the operator elect to pay. If the operator does not pay, then the landowner is free to pursue a new lease with any operator willing to lease. If the lease does not contain automatic extension then things may get interesting. It is easy to understand that those with straight five year terms are free to lease their property if it is not in production. But what about all of those other interesting lease terms in the lease Addendum that grew popular as the last leasing wave swept the countryside? Does your lease have a Pugh Clause? Is it Vertical or Horizontal? Does your lease contain a pool all? These questions matter and here at The Skeen Firm we are ready to answer them and help you make the right decisions regarding your Oil and Gas rights moving forward.
Call today, at 724-550-6970, or email at info@theskeenfirm.comto schedule a consultation to discuss your lease form and options moving forward. Leverage our industry experience for your advantage.
*Disclaimer: The advice provided is for informational purposes and is not intended as legal advice. It should not be relied on, nor construed as creating an attorney-client relationship.
Probate and Taxes and Fees, oh my!
Picture this for a brief second. We are all mid movie and a beloved character has tragically passed. What happens next? Everyone knows the answer. The family goes to some unknown attorney’s office to “read the will”. They all act surprised and furious when they are cut out of the decedent’s estate, the bulk of which went to charity and a beloved tabby. But is this an accurate construct in the real world? Keep reading for an explanation of why this is all Hollywood drama. Do not confuse this with meaning there might not be drama in what is better known as the probate process, but this is a preview of what to expect when a loved one dies.
The scene described above in some ways describes an estate set up by a Trust. Those who die with an estate plan based on a will (testate in the legal world) are required to go through a process known as probating the will. For lack of better terms, filing a will with Register of Wills and petition for probate with the Orphans’ Court opens an action against the decedents’ estate so that their debts can be settled and remaining assets disbursed. Upon filing the petition, the court will grant Letters Testamentary enabling the listed executor/executrix within the will to begin gathering assets and acting on behalf of the estate. At this point a whole list of beneficiaries, creditors, heirs, and even the public are given notice by the executor that probate is underway.
After clearing these initial hurdles, the executor/executrix will focus on valuing all estate assets for a basis from which to settle debts and pay taxes. Tax situations vary by estate, but most can plan on paying a PA inheritance tax for any transfer that is not between spouses or children under 21. Federal inheritance taxes are more difficult to pin down because they change periodically based on the party in control. There are ways to plan for these changes, should an estate value project out that high. This is one of many reasons to develop a plan that can change to meet your needs as these changes occur. Once the assets are valued and both creditors and taxes are paid, the executor/executrix can prepare a final accounting and distribute the estate.
Sure a will costs less up front than some other estate planning methods, it might cost the family more in the end through taxes and attorney fees. These fees vary from .5% to 7% based on estate size. Also, worth consideration is the emotional toll the probate process will have on some. Trusts offer a viable alternative but cost significantly more to establish. They do, in many cases, avoid the probate process all together. One thing is certain; neither provides a way to completely avoid estate taxes. At The Skeen Firm we are ready to help you decide which plan makes sense for your situation and provide custom tailored solutions. Contact us today at 724-550-6970 or info@theskeenfirm.com to get started on your plan!
*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice. It should not be relied on, nor construed as creating an attorney-client relationship.
Essential Estate Planning - the legal house protecting your family’s future
A house and a sound estate plan have tremendous similarities that do not immediately meet the eye. Both are comprised of a firm foundation to build on, solid walls to protect all sides, and a roof to shelter when the proverbial sky is falling. But a house is a legitimate structure and an estate plan is just a bunch of legal documents with no foundation, walls, or a roof. What gives? The analogy will unfold below.
Foundation – The Will
Most houses are built on a poured or laid foundation if they are truly built to withstand the constant surface shifts. A foundation supports all of the structural weight of the home. Foundations prevent walls and floors from separating and shifting. Essentially, they provide a control platform.
Similarly a Last Will and Testament functions as the foundation in an essential estate plan. How so? A Last Will and Testament gives the testator control of how their assets, both real and personal, are distributed after their death and probate process. (More on the probate in later posts.) Thoughtful planning with a will provides peace of mind for who retains custody of minor children, who takes the family home, how assets are divided, and other considerations. It is the foundation of a compressive plan. Essentially a will is a control platform.
So what happens if someone dies intestate (without a will)? Dying intestate subjects your assets to state distribution statutes. A more thorough discussion of intestacy is planned for a subsequent post, but in short if you die intestate you lose control of everything you build during your lifetime.
Walls – Durable Power of Attorney
With a firm foundation laid, the next step in building a house involves framing walls and expanding the home upwards. Walls protect against whatever, in most normal cases, the outside world can throw at a home. They are flexible enough to withstand high winds and other unpredictable weather. Security is a core human need.
A Durable Power of Attorney (POA) in many ways acts as the walls within your estate-plan. Having a POA in place protects and allows your interests to continue as normal should something catastrophic occur without having to go to court for the appointment of a guardian. As your Agent, the person must act and protect your best interest. Like walls on your house, a POA protects against the unpredictable nature of life and adds security.
Roof - Healthcare POA and Living Will
Atop every home is a roof. Similar to walls, roofs protect against nature’s unpredictability. It also ties the walls together helping to hold them in place. Often out of sight and out of mind a roof provides protection from the proverbial “sky is falling” situations.
In the simplest of terms, a Healthcare POA and Living Will serve as your last line of defense in crisis situations. Like the POA mentioned above, the Healthcare POA gives your Agent the power to make health care decisions that are in your best interest should you become incapable of doing so for yourself. The caveat with this set of documents is the Living Will portion that sets out specific instructions for how critical medical situations are handled. These combined documents are your last line of defense in any “sky is falling” situation.
Do not hesitate to contact The Skeen Firm today if you feel like your Estate Planning “house” is not in order. With free consultations and preliminary reviews of existing plans there is no better time than now to secure your family’s future.
*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice. It should not be relied on, nor construed as creating an attorney-client relationship.
The gift tax and other humbugs that can ruin the holidays – A primer
As we move through the various holidays recognized in December it is important to remember that charity, humanity, and family are the reason the holidays exist in the first place. Enjoy one another. Be kind to everyone you meet.
However, merriment is not always present this month and that is where this article will focus. First and foremost, let’s address the spirit of giving. No other period of the year embodies the spirit of giving more than the month of December. To give is to freely transfer possession of something (property) to someone else.
As the old saying goes though, nothing is free. In fact, the IRS has special tax treatment for gifts. What was that, taxes on gifts? Yes, that is correct. Per the Tax Code there is a tax on any transfer of property from one individual to another. Talk about a serious holiday downer. Thankfully there is an exemption available to save the spirit of giving. In fact, the exemption covers up to $15,000 worth of gifts annually. So give and give big!
Also, as a reminder, please have a designated driver lined up or use a ride share for any holiday parties you plan on attending this season. The legal limit in Pennsylvania is .08, but that is just the tip of the troubled iceberg. DUIs are divided into three tiers: general impairment, high rate, and highest rate. These tiers determine the sentence associated with a DUI arrest. In short, you will have a lot less money for the giving mentioned above if you are pulled over and charged with a DUI. Further, driving impaired is the equivalent of playing roulette with not only your fate but also everyone else. It is best to leave roulette to the casinos because playing the road version produces zero winners.
Finally, everyone should focus on leaving family feuds to the television show. There is never a good time for a domestic issue so keep that in mind while you are attending family dinners. Sure there is a lot of stress at times in everyone’s lives. Do not let that stress escalate a situation to fisticuffs or worse. It is safe to assume that no one wants an assault, battery (and/or both) case either civil or criminal as a gift this holiday season. So do your best to avoid these situations or topics that could create tensions.
If by chance you do not head this advice, feel free to call us at 724-550-6970 or email us at info@theskeenfirm.com. We would be glad to speak with you to help you through your holiday humbugs.
*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice. It should not be relied on, nor construed as creating an attorney-client relationship.
Having an estate plan is one of the best gifts you can give your family.
The popular quote often attributed to Benjamin Franklin “Failing to plan is planning to fail” is widely applicable to every aspect of life. It is especially important when it comes to death. Most families struggle to pick up the pieces after losing a loved one. Coincidentally, this is also a time full of tremendous responsibilities in the state’s eyes. While none of this information will help avoid the dreaded estate tax, at either the Federal or State level, it will focus on what each individual can and should do to remove some stress from an already traumatic situation.
The Foundation
Regardless of whether you chose to use a Last Will and Testament or a Trust, the important thing is to have a plan. Both of these documents deal with transferring your assets after death instead of relying on the State’s intestacy laws. The major difference between the two documents is the approach in which the transfer occurs. A Last Will and Testament goes through the probate process. A Trust can undergo administration in an attorney’s office. The technicalities will come in subsequent posts, but if you are interested feel free to Contact me for more information. This document is the foundation of your plan and is purposely designed to carryout your desires.
Financial Fix
It is also important to have a Durable Power of Attorney. A Durable Power of Attorney appoints someone, either an individual or institution, known as an agent to handle your financial affairs if you become disabled or incapacitated. This document helps keep your personal matters going, without unnecessary delays and costs of Petitioning the Court to have a guardian appointed.
Healthcare Help
The next two documents work hand-in-hand and deal with medical decisions should you become disabled or incapacitated. The first document is a Medical Power of Attorney, which similar to the Durable Power of Attorney appoints a family member or close friend, as your agent to make medical decisions. What decisions will they make though? That is determined by a Living Will. A Living Will is the best way to complete any plan as it provides directions to your Medical Power of Attorney with decisions involving end of life care, at what point to stop resuscitation, and other difficult decisions.
At The Skeen Firm we believe that solid estate planning is one last gift that you can give your family to express your undying love.Contact us today if you have any questions about your existing plan, would like more information, or would like to start working on your own plan.
Solutions for your small business
Business Subscription Services
Outside General Counsel
Because our business is YOUR business
All businesses face issues requiring ongoing legal support as they grow. Most, however, do not have the budget to hire a full-time attorney. Use our Outside General Counsel services to bridge the gap. Our role is that of a strategic business partner, instead of a mere project attorney, shifting the focus for our business objectives to yours. We take the time to learn your business, grow with your business, and eventually transition your business to your in-house counsel. Our mission is to provide the legal advice you need to grow from start up to industry leader. For those businesses not ready for ongoing services ask about our flat fee, project-based pricing.
Services Include:
1-hour monthly meeting
Contract review and consultation
Contract management – meet your renewal deadlines
One monthly project or Original contract generation
20% discount on additional firm services
Plans start a $750/Month*
*Plans are individually tailored based on business need following an initial 30-day business assessment. The initial assessment fee is $1500.
Contact us today to discuss your options!
Phone: 724-550-6970
Email: info@theskeenfirm.com
Custody Conundrum – Both parents passed suddenly, now what?
The sobering truth about life is that sometimes the most unexpected situations arise that alters everyone’s life in a moment’s notice. While losing a parent is traumatic for anyone, it can prove particularly life altering for minor children. Consider a situation where both parents are in a fatal accident. In this situation, who gets custody of the children? The answer is, it depends. Depends on what though?
The parents die intestate?
In the first “it depends” situation, both parents are assumed to pass intestate. What does that mean? In short they passed without a Will. What happens to the children? There is no predetermined schedule for custody for a court to follow. The first concern of the court is the safety and future care of the children. To address this concern, they will look for close family members who are willing and able to take the children in. But, what happens if the surviving family members fight over custody? The decision is left up to the court to determine what is in the best interest of the child. At a certain age the child might have a say, however that is not always guaranteed.
The parents die testate?
A parent that dies testate, with a Will, can essentially give custody to whomever they chose. The court will usually honor the parent’s decision within their will so long as the individual gaining custody is deemed fit. Should the court deem the individual unfit, it will follow the same process it would if the parents passed intestate. Under this “it depends” situation, the parents largely have more control over the future guardians.
Addressing the issue at hand.
It is unsettling that as few as 36% of parents with children under the age of 18 have a Will or some sort of directive for emergency guardianship in place. (see caring.com 2017 will survey) In all fairness, the thought of leaving minor children behind is unpleasant for all parents, but a cohesive plan can start to provide some peace of mind. So, how does this plan come about? Start by establishing a preferred list of guardians after discussing the possibility of guardianship with the individuals on that list. Then include these individuals within your Will. This is just one of many situations that highlight the importance of a comprehensive estate plan. The Skeen Firm provides client tailored estate planning solutions to fit any need. Let us help you address tomorrow’s tough questions so you can live for today.
The Family Intellectual Capital Plan
When it comes to preserving a family’s intellectual capital, most estate plans are lacking at best. In reality, passing this particular asset class on is invaluable to shaping future generations. An effective Family Intellectual Capital Plan (FICP) will establish the accumulation and dissemination process of family knowledge to all family members. In short, the FICP is an integral part of a comprehensive estate plan and is a large driver of collective family wealth across all generational horizons. Don’t’ have a FICP as part of your estate plan or you don’t currently have an estate plan? Contact The Skeen Firm today!