LIVINGSTON, NJ — Michael H. Karu, CPA/CFF, senior member at the Livingston-based accounting firm Levine, Jacobs & Company, LLC, was recently asked to offer advice on the best way for New Jerseyans to protect their assets.
In a segment on NJMoneyHelp.com, a reader with three rental properties in his or her name inquired about the pros and cons of creating an LLC or corporation for those properties and how doing so would affect the safety of his or her assets and taxes as well as the ease of transfer to next of kin.
“The biggest reason to use a corporation or an LLC is liability protection,” said Karu. “We prefer using an LLC since profits may be disproportionately distributed and the annual cost is lower.”
Karu also emphasized that an estate plan offers the ability to gift percentage interests of the corporation or LLC.
“Assuming you want to gift 30 percent of the real property to a child, it is far easier to gift a percentage interest in an LLC than the real property,” he said.
Karu is qualified by the Superior Court of New Jersey, Family Part, as an expert witness and as an authority on business valuations, specifically for closely held or family-owned businesses. He is also a Certified Divorce Mediator and is Certified in Financial Forensics.
Karu received his Bachelor of Science degree in Business Administration from The Ohio State University and holds professional memberships in the American Institute of Certified Public Accountants, the AICPA Tax Division and the AICPA Business Valuation, Forensics and Litigation Services Section, as well as the NJ State Society of CPAs. Karu is a published author of numerous articles seen in trade and consumer publications and has been a guest on radio and television shows.
To read the full article in which Karu discusses the protection of assets, click here. To speak with Karu directly, contact Amy Delman of Amy Delman Public Relations, LLC at 201-563-4614 or email@example.com.
Levine, Jacobs & Company, L.L.C. maintains memberships in the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. The firm prides itself on its teamwork abilities where “every account receives the talent and expertise of the whole firm.”