Lawyer Monthly Magazine - October 2019 Edition

“ In order to combat gender discrimination in the employment marketplace, more and more women are starting their own businesses and as a result taking on more and more debt, including the concomitant tax complexities. ” ages, classes, races and other circumstances find themselves heading their own households and leading their own small businesses, these women must educate themselves about how to deal with the financial and legal issues associated with this management and control, including how to manage their assets, liabilities, incomes, expenses and taxes. These women, especially if they are seniors, must also be on the lookout for signals given off by those both within and outside their extended families who are attempting to take financial advantage of them and learn how to combat the various kinds of financial abuse. This new cohort of women also needs to know what to do when things do no go as planned, including the fact that they may need to unashamedly consider seeking the protection of the bankruptcy court to either reorganize or eliminate some or all of their debt in order to keep themselves, their families and their businesses moving forward. Let’s start with the basics: what we need to consider when starting a woman-owned business. When starting a business, women need to consider their options for structuring the business. I. Why Selecting the Proper Business Structure is So Important for Success. through divorce or as the result of widowhood ; 3. Some divorced women are finding that their former spouses will not willingly share the fruits of the marital estate unless and until they are compelled by the Family Court, if at all ; 4. A record 40 percent of all households with children under the age of 18 include mothers who are either the sole or primary source of income for the family, according to the Pew Research Center analysis of data from the U.S. Census Bureau. The share was just 11 percent in 1960. 5. Most women to varying degrees are finding that the men who control their incomes in the workplace, either directly or indirectly, do not see these women as their intellectual or competence-related peers and therefore will readily discount the value of these women’s “women’s work”, as compared to the men’s “men’s work”, even in high paying high skilled industries such as STEM or the law; and, 6. In order to combat gender discrimination in the employment marketplace, more and more women are starting their own businesses and as a result taking on more and more debt, including the concomitant tax complexities. So, as more women of all The business structure affects the owner’s personal liability for business debts, her ability to raise capital and credit, the formation paperwork the owner will need to file initially, the ongoing records and books the owner will need to keep, the governmental reports the owner will need to file periodically, and how much the owner will pay in taxes. The owner will also need to choose a business structure before she can register the business with any state or municipal agency. Also, most businesses will also need to obtain a taxpayer ID number and apply for the appropriate business licenses and permits in the city and/or county where it is located. As such, an owner should choose her structure carefully. Even though an owner may convert to a different business structure in the future, there may be restrictions based on the location of the business. This could also result in unintended tax consequences or even the unintended dissolution of the business. The business will also need one or more insurance policies to protect the assets needed to run the business and to provide the owner with access to legal counsel when the owner or her employees harm third parties through an act of negligence. III. What Are the Major Business Structures Available to the New Business Owner? A. A sole proprietorship: A sole proprietor is someone who owns an unincorporated business by herself. In effect, the new business is an extension of the existing person legally and for taxation purposes. A sole proprietor should consider obtaining the following insurance: 1. General Liability insurance; 2. Property Insurance; 3. Business Owner’s Policy (BOP); 4. Commercial AutoInsuranceRider;5.Worker’s Compensation Insurance; 6. Professional Liability Insurance; 7. Data Breach Insurance; 8. Homeowner’s Insurance; 9. Renter’s Insurance; 10. Life Insurance (Key Person Insurance); 11. Personal Automobile Insurance; 12. Personal Umbrella Insurance; 13. Family Health Insurance First Choice Lawyers By Selwyn D. Whitehead, Esq., Law Offices Of Selwyn D. Whitehead 69 OCT 2019 | WWW.LAWYER-MONTHLY.COM Here are some of the key financial issues women will need to address in this new financial environment we all find ourselves facing: 1. Business Formation and Insurance Issues 2. Budgeting for Households and Business Ventures 3. Federal, State and Local Taxation Issues 4. Retirement Funding Issues 5. Estate Planning and Administration Issues 6. Identifying and Steering Clear of Financial Elder Abuse Scams