Month: July 2014

Differences Between Operating Agreements and Franchise Agreements

Posted on | by mP@

Contract-attorneys-in-Coral-SpringsAs experienced contract attorneys in Coral Springs, we at Reinfeld & Cabrera, P.A. have often been asked to explain the differences between operating agreements and franchise agreements. We know that opening a new business is scary enough without the help of contract attorneys, but Coral Springs really offers a wealth of opportunity for new business owners. However, without the guidance of reliable contract attorneys in Coral Springs, you could find yourself in a mass of confusion such as in understanding the differences between operating agreements and franchise agreements.

Despite the fact that both operating agreements and franchise agreements are used to structure the function and responsibilities of businesses and business owners, these documents are actually used in very different circumstances.

Operating Agreement:
An operating agreement is an essential document in the formation of a Limited Liability Company (LLC). Owing to the fact that an LLC is a flexible form of business with the ability to be created in many different ways, an operating agreement is crucial to the company formation as it is the document that clearly defines with whom the responsibility of the company sits. The operating agreement lists the members of the company, as well as specifies the internal operations of the company. In doing this, the operating agreement is able to provide the information on who has authority for various roles and how this authority can be modified. One of the primary uses of the operating agreement in an LLC is for protection and clarification. It is able to provide listed business members protection from personal liability, thus shifting liability for business actions onto the business instead of the members. Not only does an operating agreement provide protection but it also clarifies verbal agreements and makes sure that all state regulations are met.

Franchise Agreement:
Although a franchise agreement may seem similar to an operating agreement in many ways, there are a number of important differences to take into account. While an operating agreement provides business structure and member information, a franchise agreement, on the other hand, is a contract between a franchisee and a franchiser. A franchise is a binding document, wherein the franchisee is given the ability by the franchiser to use the franchise name, trademarks and assistance that is attached to it, for the purposes of starting a new business. Two other important distinctions between the operating agreement and franchise agreement are the obligations and division of fees sections found only in the franchise agreement. The division of fees section stipulates the division between which business fees the franchiser must pay and which the franchisee must pay while the obligations section contains the information regarding 1. Obligatory franchiser assistance provided to the franchisee; and 2. Amount of profits that the franchisee is to pay the franchiser

When it comes to operating agreements and franchise agreements, you would be well advised to contact practiced contract attorneys in Coral Springs – such as Reinfeld & Cabrera, P.A. – to ensure that your best interests are taken care of when forming a new business. Contact us today for your free initial consultation.

5 Probate Myths

Posted on | by mP@

Probate-attorneys-in-Coral-Springs

As experienced probate attorneys in Coral Springs we at Reinfeld & Cabrera, P.A. have often come across 5 probate myths that people are convinced are true. As all good probate attorneys in Coral Springs will tell you estate planning is a serious business and essential if you are concerned about what will happen should you become incapacitated or pass away. However it seems that thanks to these 5 probate myths, proper estate planning is often overlooked as costly and unnecessary. That is why we at Reinfeld & Cabrera feel compelled, as trusted probate attorneys in Coral Springs, to make sure you are not falling victim to these top 5 probate myths.

#5. I already have an estate plan and don’t need to think about it again.
This is a constant source of frustration for probate attorneys in Coral Springs. Your estate plan needs to be monitored and updated every time you have a major life change such as divorce, marriage, birth etc. Ideally you should consult with your attorney every four or five years to discuss changes in your circumstances that could affect your estate plan.

#4. There is no need to make my spouse a beneficiary.
Couples tend to assume that if one spouse dies, the other will simply continue living with all the assets in their estate, and that all the assets of the deceased spouse will automatically go to the living spouse. There are so many factors that influence how this works, such as how your assets are titled; and whom you have named as the beneficiaries of your life insurance and retirement accounts. Furthermore if you die without a will, what is left of your estate will be divided between your spouse and your children. This could create issues especially for spouses who are financially dependent on each other or have children from other marriages.

#3. Death Taxes.
As probate attorneys in Coral Springs we have often heard estate tax referred to as unfair “death tax”. When it comes to federal estate tax did you know that there is a $5 million+ federal estate tax exemption? Thanks to this exemption it is estimated that less than 0.10% of estates will be subject to federal estate taxes. When it comes to state estate taxes most states actually impose their own estate tax, which is significantly less then the Federal Government exemption. However, in the state of Florida, the estate tax is not assessed and no portion of what is bequeathed in a will or a trust to an individual will go to the state.

#2. Probate – no problem!
If you live in Florida, this is simply not true! Without the help of a probate attorney your family and loved ones will be left to navigate a gauntlet of complicated probate procedures and be at the mercy of a probate judge who does not know you or your family.

#1. Estate planning is for the rich.
Unless you live in a cave with not a penny or asset to your name you will need an estate plan. An estate plan does not have to be expensive. By speaking with a knowledgeable probate attorney, such as Reinfeld & Cabrera, P.A. you will be able to structure an estate plan that will best suit you and you family’s needs.