With a title insurance policy, you as owner, have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy. Title insurance will pay for defending against any lawsuit attacking your title, and will either clear up title problems or pay the insured’s losses. For a one-time premium, an owner’s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.
An escrow agent is a person or entity holding documents and funds in a transfer of real property, acting for both parties pursuant to instructions. Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until all of the instructions in the transaction have been followed. The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.
A buy-sell agreement, also known as a buyout agreement, is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business, or chooses to leave the business. The plan describes how the interest of each owner of the business will be valued; how each owner will be paid the value of their interest when they quit, retire or die; and identifies the source of funds that will be used to pay the value of their interest in the company. Buy-sell plans are an effective method for dealing with the issue of a co-owner leaving a business.
Under the Idaho Uniform Liability Company Act (Idaho 30-6-101 et seq.) a limited liability company is not required to have a written operating agreement. However, such agreements are advisable so that problems with the management or operation of the company are later avoided. The operating agreement should be approved and signed by the members of the L.L.C. The operating agreement describes the formal management structure and procedures for the company. Therefore, it should be detailed and address among other things the following topics: a) company name and principal office, b) the purpose of the company, c) who the initial members are, what capital contribution they have each made, what percent of the company they each own, whether and how membership will be transferred, d) how the company will be managed and by who, e) when and how meetings will be conducted, f) how members vote and what percentage vote is required to approve action, g) how the books will be maintained, h) how profits and losses will be determined, and i) how the operating agreement may be amended. The operating agreement is an internal document and does not need to be filed or recorded with the state.
When the IRS recognizes tax exempt status, it is specifically for a named entity – usually a corporation, sometimes a trust or association. If the corporation does not exist yet, it cannot submit a 501(c)(3) application. You need to incorporate first.
Selecting a particular form of business organization may be a difficult step in starting a business. Each type of organization raises different considerations relating to, among other things operations, personal liability, and tax status. The types of organizations are: general partnerships, limited partnerships (LP), limited liability partnerships (LLP), limited liability companies (LLC), and corporations.
General Partnerships -Idaho Code § 53-3-101
Limited Partnerships -Idaho Code 53-3-201
Limited Liability Partnerships-Idaho Code § 53-3-1001
Limited Liability Company-Idaho Code §30-6-101
Corporations-Idaho Code § 30-1-101
A statute setting a time limit on legal action in certain cases. A statute of limitations is the legal date or time period set as an expiration date on the amount of time that a person or the state can seek legal action. In Idaho the statute of limitations for specific types of cases:
Contract in writing- 5 years (Idaho Code section 5-216)
Contract (oral)- 4 years (Idaho Code section 5-217)
Fraud- 3 years (Idaho Code 5-218(4)
Action to foreclose on real property- 5 years (Idaho Code 5-214A)