Reib Law - January 2022

Reib Law - January 2022

SHATTERPROOF NEWSLETTER

JANUARY 2022 S-CORP OR C-CORP? WHICH ENTITY IS RIGHT FOR YOUR BUSINESS?

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In our last newsletter, we talked about reasons you would need to hire a business lawyer. For the next few editions, we will be taking an in-depth look at some of the specific things a business lawyer can help you and your business with. One of the first decisions an entrepreneur should be making is the selection of the right form of business entity. This is a critical decision because of its ongoing legal and tax consequences.

When it comes to taxes, the major disadvantage of a C-Corp is “double taxation,” where the profits are taxed at the corporate level and then again at the shareholder level if they are distributed as dividends. In a closely held corporation whose owners are involved in the corporate business, the problem of double taxation can be avoided by taking the profits as salaries. If there are passive investors, such as shareholders who do not directly work for the corporation, double taxation remains a major problem. There is no double taxation issue for an S-Corp since it is taxed as a pass-through entity and profits are reported on the business owners’ personal tax returns. There are several different tax scenarios for LLCs, so you should consult with your business attorney and CPA before making a decision on the tax structure for your LLC. If you’re interested in learning more about S-Corps, and if they’re a good fit for your business, make sure you check out the next edition of our newsletter. We will be discussing if it’s the right move for an online business to be an S-Corp. Whether you’re starting or already running a business, the best time to hire a lawyer is before you need one. Having a business attorney who understands the individual needs and unique circumstances of your company is key to helping your business thrive and prosper. If you are interested in learning more about legal protection strategies for your business and how we work with you as a partner in protecting your company, call us today to schedule your comprehensive LIFT™ (legal, insurance, financial, and tax) Foundation Audit.

Liability protection is the most important non-tax consideration in the business entity selection

process. The business owner has to have a shield of liability protection covering their business activities in order to protect their personal assets from liability exposure. There should be no debate over whether or not to create a liability-shielded entity in which to operate the business or to go “bare” and operate as a proprietorship or a general partnership. If you intend to build a successful business, then you should either incorporate or set up a limited liability company (LLC).

A corporation is a separate legal entity that is state- chartered and created. The two types of corporations are C Corporations and S Corporations. For tax purposes, a C-Corp is taxed as a separate entity from the owners, and an S-Corp is a pass-through entity that is taxed like a partnership. For legal purposes, there is no distinction between the two. The major advantage of a corporation is that it affords a shield of liability, protecting the owners from claims against the business. It is a perpetual entity, which means it’s also a good vehicle for estate planning purposes.

–Scott Reib As your Access Lawyer, we're specifically trained to help entrepreneurs like you put these cornerstone systems in place, providing your company with a shatterproof foundation. To see how stable your foundation is, take our Shatterproof Business Audit and assess your confidence in how much your legal, insurance, financial, and tax foundations will support your business growth. Just go to REIBLAW.com/ shatterproof-audit and complete your audit. We will send you back a report card.

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IS NEUROPLASTICITY THE SECRET TO SUCCESS? 6 SCIENTIFICALLY PROVEN WAYS TO BOOST YOUR BRAIN POWER

Neuroplasticity is the brain’s ability to change and adapt throughout your life, forming new connections that can have a direct impact on your energy, productivity, focus, creativity, motivation, and much more. Your brain can expand and grow even after an injury. That’s why many entrepreneurs are saying the same thing: One of the smartest ways to invest in your business is to devote resources to your most important asset — your brain. But how do you keep your brain active, healthy, and functioning at a high level? Param Dedhia, MD, says six key areas are involved: sleep, exercise, joy, nutrition, internal medicine, and inflammation. All of these factors work independently, but together, they can promote neuroplasticity, which is why they all require equal attention. Everyone wants to stay engaged with the world around them, but you can’t do that without sleep. In fact, research published by the journal PLOS One discovered that getting six or fewer hours of sleep was associated with memory and executive function problems, i.e. problem-solving, planning, and execution. So, make sure you get enough sleep before tackling your day.

Exercise is crucial because, according to brain plasticity researchers at IOS Press, exercise “alters the synaptic structure and function in various brain regions,” promoting brain growth and even delaying the onset of Alzheimer’s disease. Promoting growth can also be as simple (or as difficult) as focusing our attention on thoughts that bring us joy. Gratitude promotes very different brain activity than negativity, anger, or bitterness, and studies on gratitude show that the positive effects can be lifelong. Nutrition can’t be understated either, since it can assist your body in maintaining health and fighting inflammation. The brain uses about 20% of the body’s calories, and eating plenty of omega-3 fatty acids can strengthen brain cells, while antioxidants reduce cellular stress and inflammation, which are linked to brain aging and neurodegenerative disorders like Alzheimer’s disease. With the right habits, you can keep your brain healthy for many decades to come. You might even grow in entirely new and unexpected ways.

STAY AHEAD OF THE DIGITAL MARKETING COMPETITION

It’s no surprise that social media has revolutionized the marketing world, as companies of all sizes and industries have been able to create and share content with a much wider audience. However, not every business owner knows how to create and share video content. That’s where Vimeo comes in. Vimeo is a comprehensive video creation and sharing platform that works wonders for small businesses. While there are other options available through programs like YouTube and Instagram, none can compete with Vimeo. Vimeo allows you to easily create videos for all of your social channels, film a tutorial or product walk-through, and even run a high-quality livestream. That means you can use Vimeo as a marketing, client relation, and internal communication tool all at once. If you’re worried about the content creation side, Vimeo has you covered. They provide templates, and all videos can be shared straight from the platform. Vimeo also provides you with analytics so you can keep track of how many people are viewing your videos and easily respond to comments. You can use this information to easily turn viewers into clients. WITH THIS MONTH’S BIZ TOOL: VIMEO

If you’re looking for something to use between your team in the office, Vimeo can help there, too. It has the ability to livestream meetings, record SOPs and messages, and even train new hires with the platform. A senior account executive with Scribewise had this to say about Vimeo: “Vimeo helped us jump on the video marketing trend and easily create high-quality videos to share with current and potential clients, with no video production or editing experience needed.” Vimeo was reviewed by PCMag and received a 3.5 out of 5-star rating. Their bottom line states that “Vimeo is the video platform for artists, advertisers, and general creative- types who produce high-quality content. It can be expensive for creators, however, and its interface needs work.” Vimeo’s plans range from “Plus” at $7/month to “Premium” at $75/ month. To see all of Vimeo’s pricing plans or to start a free trial, visit Vimeo.com/upgrade.

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MADE-FOR-YOU LEGAL SERVICES, WITHOUT THE HIGH RETAINERS PROTECT WHAT YOU’VE BUILT, WITHOUT BREAKING THE BANK. You already know you need solid legal advice to protect the business you’ve built. Here are the problems … • It’s too expensive to build your own in-house legal team. • Paying the high fees that come with retaining a top firm is out of the question. • You’ve tried the cookie-cutter prepaid services but didn’t get the personal attention you need.

Tom Ziglar, the proud son of Zig Ziglar and President of Ziglar Corp. “Not only does Scott Reib handle all of our legal needs but he is an extremely valuable growth strategist and his insights have made us far more money than what we have paid him. Because of this unique combination of legal protection and business growth strategies, I highly recommend Scott’s Access Plan.”

What’s the Solution? You need your own legal team that knows your business inside and out. That’s why the expert lawyers at Reib Law created The Access Plan. It’s a program that gives business owners like yourself access to all the best legal services without the sky-high costs traditional firms are known for. The Access Plan is available for you to use whenever you need it for one flat monthly fee. YES, you get unlimited text, email, and phone calls with your attorney. YES, your attorney can create and review your business contracts. YES, you get a Shatterproof Business Assessment and legal strategy session as a member. YES, it includes setting up your corporate structure. Finally, you can concentrate on running your business knowing you’ve got a legal team in place to help you avoid many of the pitfalls that come from running your own company. You can finally stop wondering if you’re making the right choices for your business. With most small businesses surviving on razor-thin profit margins, any litigation could be disastrous. Imag ine getting all your legal questions answered by your own personal lawyer who’s an expert in your industry and is already familiar with how you run your company. • You’ll never have to try incorporating your business on your own, potentially making a fatal mistake that leaves your personal assets exposed to uncapped liability. • You’ll avoid using contracts with your customers that might contain illegal or unenforceable language. • You’ll know well in advance if a contract you’re offered has terms that are bad for your business. CONTINUED ON BACK ...

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... CONTINUED FROM FRONT

It’s like having your own in-house team of lawyers on-demand! It’s true. Any time your business needs legal advice, all you have to do is pick up a phone and speak with an attorney who has worked with you before and understands your needs. Have you ever tried working with those pre-paid legal services? • You are literally just another number. • It takes hours or days for a lawyer to call you back. • The attorney NEVER knows who you are, what your business is about, or how you operate. • And it always seems like getting you off the phone as quickly as possible is their only goal. • You never feel this way as an Access Plan member. • You will be matched with a dedicated team of attorneys who specialize in your profession or business. Your attorneys’ expertise will help you find options and solutions that always work in your favor.

Doug Foley, Amazon Best Selling Author and founder of Foley Media. “Scott and his Access Team made it so easy and simple to create the proper legal structure I needed to separate my IP from my various companies. He made it easy to understand, without any outrageous fees. Scott is a go-to guy for small business owners and entrepreneurs.”

I’M READY TO PROTECT MY BUSINESS WITH ON-DEMAND LEGAL ADVICE 1. Go to REIBLAW.com/access-program or scan the QR code and enter your contact and business information.

2. Schedule your strategy session to meet in person or online. 3. Come to your call with any questions prepared. Take notes and be prepared for complete access to your new team of legal experts.

SCAN ME!

It gets even better! Access Plan members receive a 25% discount on all Reib Law Services. There’s no need to hire expensive attorneys to help you find solutions for your growing business. Our highly-rated service lets you stop hoping and praying you’re making the right choices for your company. Our service is designed to help you: • Take advantage of years of knowledge and experience on how to navigate the legal process … • Finally rest easy knowing that something is being done to protect the business you’ve worked hard to build … • Put proven, winning legal strategies to use that have already helped hundreds of people just like you to gain the advantage in business negotiations and deals. Don’t wait to get your business needs in order. Contact us today and get enrolled in the ReibLaw Access Program. It’s one of the best decisions you can make for your business.

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3 TIPS TO CREATE BETTER GOALS FOR THE NEW YEAR

is that truly feasible? One of the biggest mistakes small- business owners make when setting their goals is to aim too high without a plan in place to reach them. If you want to create strong goals, you need to decide what you want to accomplish and make a plan. You may even need to break it down further, figuring out what steps you need to take to make your goal attainable. Hold Yourself Accountable When a task becomes too difficult or obstacles get in the way of achieving their goals, many business owners will give up on the goals. You need to hold yourself and your team accountable to reach those goals or it will never happen. Create an incentive to make achieving your goals more enticing or appoint someone as your accountability partner so you can keep each other in check. Be Wary of Potential Obstacles We often meet the new year with high hopes and expectations that things will work better for us, but it’s important that we also look at the past. You need to understand where your shortcomings were previously so you can avoid them in the future. Identify core potential problems and eliminate them as early as possible.

One of the best things any small-business owner can do for their business is to set goals, and there’s no better time to do that than in the new year. The last couple of years have been difficult for most small-business owners, and this year will probably not be any easier. That’s why it’s incredibly important that you set the right goals in place for your business. How often have you set goals for the new year only for them to fizzle out after a month or two? It happens all the time in both our professional and personal lives. If you’ve found yourself in this situation, don’t fret. It’s likely that the goals you have been making aren’t right for your business. If you want to complete your goals this year, follow these three tips. Make Your Goals Realistic It might seem like a great idea to set the goal of doubling the growth of your business before the end of the year, but

DEEP-FRIED NEW YEAR’S ‘COOKIES’

We want your feedback!

In editions of this newsletter, we’ve covered everything from business contracts to how to handle the former spouse who wound up with everything because there was no business succession plan in place. But now we’re wondering: What would you like to see? You know those legal questions that Google can’t give you a satisfactory answer to? The ones that keep you up at night as you wonder whether it’s time to call a lawyer? We want to answer those. Send us your questions, and we’ll use them to address the topics you want to know more about. Text your questions and curiosities to 940.227.3383 .

INGREDIENTS

• 2 tbsp yeast • 1/2 cup water, warmed • 1/2 cup and 1 tsp sugar, divided • 5 eggs, beaten • 1/4 cup butter, softened

• 2 1/2 cups milk, warmed • 1 1/2 tsp salt • 4 cups raisins • 7 cups flour • 4 cups canola oil

DIRECTIONS

1. In a large bowl, combine yeast, water, and 1 tsp sugar. Wait 10 minutes. 2. Stir in remaining sugar, eggs, butter, milk, and salt. 3. Fold in the raisins and flour. Cover the bowl with plastic wrap. Let the dough rise for an hour. 4. In a high-sided pot or deep fryer, heat canola oil to 340 F. Line a plate with paper towels. 5. Drop a rounded tablespoon of dough into the oil. Fry until golden brown, then set aside on the plate. Poke the cookie with a toothpick. If the toothpick comes out clean, it’s cooked through! 6. Repeat until the batter is gone.

Inspired by MennoniteGirlsCanCook.ca

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Is Your Business an S-Corp or C-Corp? INSIDE THIS ISSUE 1 2 2 3 3 4 Make Neuroplasticity Your Secret to Success Upgrade Your Digital Marketing With Vimeo Create Better Goals for 2022 Deep-Fried New Year’s ‘Cookies’ Stick to Your Resolutions — For Real, This Time

HOW TO KEEP NEWYEAR’S RESOLUTIONS

FOR REAL, THIS TIME

New Year’s Eve has come and gone, and now that the champagne is finished and the decorations are put away, it’s time to buckle down and work on those New Year's resolutions. The only problem is ... your resolutions for this year and last year are the same. Change is tough, so you’re not alone in being unable to stick to your resolutions. This year can be different, if you want it to be. Here are some tips to keep you on track. Have a specific goal. Many resolutions are vague — along the lines of “exercise more” or “eat healthier.” That’s too ambiguous to inspire motivation, and vagueness leaves room for excuses. Make your goal more concrete, so you can measure your success. Specific goals could include going to the gym three times a week, being able to bench a certain number of pounds, or only indulging in fast food once a month. Make your goal realistic — if it’s too drastic or difficult, it’s easier to give up. Have a plan. Bad habits are hard to break, so change won’t come about naturally. It’s important to consider how you’ll structure your day around your resolution and what obstacles you might face. When will you go to the gym, and what will you do if that time gets interrupted? How will you plan meals to

avoid spontaneous drive-thru visits? Write down what you want to accomplish and all the things that might stand in your way. Then, figure out how you’ll deal with them before they happen. Start small. On Jan. 1, you’re probably enthusiastic about your resolution and ready to hit the ground running. Not so fast — doing too much too soon is a classic mistake. It’s okay to be excited, but working out until you’re sore all over or constantly eating salads you hate will turn your resolution into a chore that you’ll want to avoid. Start with light workouts or replacing some of your carbs with veggies. Once you get the hang of that, you’ll be ready to scale up slowly. Using these guidelines, you’ll make lasting changes that extend beyond February. Get 2022 started off on the right foot, and next year you’ll be ready to make a whole new resolution — and keep it.

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