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HOW TO PROTECT YOUR MLM BUSINESS

HOW TO PROTECT YOUR MLM BUSINESS

Mrs. Green (not her real name)  had been diagnosed with terminal cancer and knew she didn’t have much longer to live. She was very successful in multilevel marketing business, which she had created through her efforts over the years. She wanted to leave that business to her two sons, who were now old enough to enjoy participating in that business. She wanted to make sure that it would transfer to her sons with the least possible problems and loss in value.As we reviewed the agreement with the company for which she marketed, we found out that it was like most agreements with these types of companies. The law allows a person to leave their business to their heirs through a will or a trust.

She could accomplish all her goals through her trust because it would avoid probate and reduce the time delay, allowing everything to go to her two boys. The process would be simple with the least possible loss of time and value. She had her company set up in a limited liability company, or LLC. She had done this to get the tax protection and other advantages from having her own company.

That LLC, her company, remained in trust to her two sons. When she died just a short time later, her sons wished to complete the process of transferring the assets. Everything went smoothly because the instructions were followed to the letter. Her trust was written out so that it would allow the company to transfer. The process was administered properly so that the two boys inherited the company and went their separate ways.

The experience went through so smoothly that I would like to remind other multilevel marketers that they can do the same thing with a little advance planning. After all, nobody knows when they are going to die. If the trust is in place, the business can be transferred to the heirs with the least possible loss in value. It’s a wonderful thing to do.

So, if you have an MLM or network marketing business, run that business from an LLC. Make sure your LLC is owned by your trust. That way everything will transfer quickly and easily.

 

Copyright 2012 Clint W. Smith, P.C. – All Rights Reserved

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