Partnerships and direct promotions can be a liability. Make sure you limit your chances by realizing the possibilities and weighing the good from the bad.
tax deductions, tax tips, wealth building
Pros and cons to three hot topics
Invited to be officer on the boardflattering or dangerous? Officer and director liability is staggering. If a friend of yours is starting a company or charity and she asks you to sit on the board, carefully make your decision to accept or decline the position. If a mistake happens and the shareholders file a lawsuit, you could be named in the lawsuit because youre a director or officer of the company; you are also personally liable for the salary of any salaried employees (if youre an officer of a company). Before you casually accept an offer to become an officer or director of a company, make sure you have insurance, which is called director of liability policy. If youre not pursuing the position and its something youre invited to accept, you may want to ask them to pay the premiums on your insurance.
Limited partnership vs. general partnerships Limited partnership: Your liability is limited to the amount of your investment General partners: You have unlimited liability. Because you have the day-to-day control of the company, the trade off is more liability.
Smile. Some debt can be great Good debt verses bad debt is another way to say credit verses debt. Not all debt is bad. Credit that entitles you to invest is good, such as your home mortgage (assuming your house has appreciated), starting a business, or purchasing investment properties. What determines if its good or bad is what you do with it. If youre buying depreciating assets, youre not incurring good debt.