The Gallagher Law Firm Ezine: April 2007 Legal information for your business In this issue, you will find interesting information on franchises, taxes, leases and basic terms that should be considered when two or more people are incorporating a new business venture. New business ventures can be risky and many try to reduce their risk by looking at purchasing a franchise instead of starting a business from scratch. Determining whether to invest in a franchise requires much thought and analysis. The input of an attorney, accountant and franchise consultant is recommended given the size of the investment. Ancillary aspects of the franchise such as whether to form a corporation or limited liability company to own the franchise, insurance availability, banking and lease terms must be considered. http://franchises.about.com/od/businessplanning/a/perfect_lease.htm Jeff Shafritz is a franchise consultant with ten years of highly successful franchise development experience who guides potential franchise investors through the decision making process of franchise ownership. Jeff understands what it takes to make the right match between franchisor and franchisee. http://www.franchoice.com. You can meet Jeff at our next firm luncheon on Tuesday April 24 at the Country Club of Lansing where Jeff will discuss analysis of an investment in a franchise. Don't miss this presentation! Please RSVP by Friday April 20 to Pam Palmer at psp@thegallagherlawfirm.com or (517)853.1525. The Tuesday April 17, 2007 tax filing deadline is fast approaching. This time of year I am always reminded of my obligation to pay taxes throughout the year with each quarterly estimate (SBT, FICA/FUTA, MESC, etc.) check I sign. It is not comforting to note that Tax Freedom DayŽ is not until April 30 for the average American who works from January 1 to April 30 to earn enough money to pay their federal, state and local taxes. http://www.taxfoundation.org/taxfreedomday/ You can see where Michigan ranks in total tax burden by this link: http://money.cnn.com/galleries/2007/pf/0704/gallery.tax_friendliest/8.html Taxes seem unfair to most people. Especially, those who feel they pay the government more money than the value of the services they receive from the government. Many people are tempted to cut corners on the tax reporting. This can be a big mistake as the IRS is watching and you do not want to defend an audit under these circumstances. Check out the five factors that have a big impact on the probability of an audit. Click on the link below to view this document. Audit_Factors.pdf While minimizing taxes legally is important to your economic well being, I have found that people who obsess with tax minimization may actually reduce their net incomes on bad decisions or waste valuable time that could be spent on money projects. Instead, spend your time and energy on increasing your income. Click on the link below to view this document. How_Deductions_Compare.pdf Many things should be considered by people who are planning to incorporate a business. An example of a pre-incorporation agreement containing basic terms is a good place to start. Click on the link below to view this document. Pre-incorporation_Agreement.pdf We provide a regular schedule of luncheon speakers on topics affecting your business (see below for more details). These luncheons last about one hour and are held at noon on the 3rd or 4th Tuesday of each month at the Country Club of Lansing. There is no cost for current firm clients. Non-clients may attend at a cost of only $25. Let us know if you have a topic suggestion that would be good for a luncheon lecture or if you would like to be a presenter at a luncheon lecture. As always, we welcome your thoughts and encourage you to reply by email or telephone. Sincerely Pat Gallagher bpg@thegallagherlawfirm.com Tel 517.853.1515 News Pat Gallagher was elected to the 2007 Greater Lansing Estate Planning Council Board of Directors. The Council consists of accountants, attorneys, financial planners, insurance agents and trust officers and was formed over 35 years ago to promote cooperative efforts in Estate Planning. Upcoming Estate Planning Seminars: April 25th - 6:30PM    (Dinner) at Coral Gables, East Lansing   April 26th 6:30PM    (Dinner) at Country Club of Lansing May Dates To Be Announced Please contact our office at (517) 853-1500 for seat availability as typically there is a waitlist for the above seminars. Pat Gallagher and Craig Gerard will be speaking for Lorman Education on the "Eight Greatest Estate Planning Devices" on Wednesday June 27. Location to be announced. Upcoming Luncheon Seminars: April 24th - 12PM    "Guide to Capturing a Piece of the American Dream" Franchise Ownership seminar by Jeff Shafritz Lansing County Club   May 22nd - 12PM    "Taking Care of Business with the Small Business Administration" Learn how your business could benefit from SBA financing by Chase Bank Lansing County Club Please contact our office at (517) 853-1525 for registrations of the above luncheon seminars. Clients free, $25 non-clients. Recent Luncheon Lectures (at Lansing Country Club) March 2007 - Craig Gerard, Estate Planning Attorney - Gallagher Law Firm, PLC presented "Common Sense Estate Planning for Everyone". [link to Craig's website page] February 2007 - David Sally of Development for Growth presented "Leadership - Within Us All" (http://www.developmentforgrowth.com). David is a great speaker and motivator with extensive business management experience. People really gained new perspectives and ideas from David. January 2007 - No luncheon as the Country Club is closed in January 2007. Recent Presentations Craig Gerard presented an estate planning seminar "How to Preserve Your Estate With a Living Trust" on April 10th 7:00 PM at the Comfort Inn in Okemos and April 12th 10:00 AM at the Lansing Sheraton. Each conference was well attended with more than 30+ participants. The attendees were a diverse mixture of college professors, investment advisors, and medical providers as well as individuals in the sales and clerical professions. Pat Gallagher spoke to 28 attorneys at the March 7 Ingham County Bar Association's Luncheon Lecture Series on "Real Estate Transfer Issues". Gallagher covered transfer tax, uncapping of taxable value and homestead exemptions. This event was held at the State Bar of Michigan Building 306 Townsend Street, Lansing.