LLC Law Blog

I want to thank California attorney Mark G. Lerner of the Lerner & McDonald law firm in Santa Ana, California, for his recent very nice testimonial about my LLC formation services.  He said:

“As a California attorney, I have used Richard Keyt’s LLC formation services for many of my clients as well as myself over the past 7 years.  Richard and his staff do an excellent job of creating high quality documentation in a very efficient manner. I have always been quite satisfied with each time that I have used Richard Keyt to form an Arizona LLC. I would strongly recommend his LLC formation services to others as we.”

See the great testimonials many other happy LLC clients have given me.

Effective October 1, 2013, all businesses that  have $500,000 in annual revenue and one or more employees are required to give written notice to every employee about the Affordable Care Act’s health-care exchanges.  An employer who fails to give the required notice to all employees will be subject to a $100-per-day fine. This written notice requirement applies to any business regulated by the Fair Labor Standards Act.  After September 30, 2013, these employers must give the written notice to all new hires within 14 days of the date, according to the Department of Labor.

The U.S. Department of Labor issued a notice that states:

“A. Employers Subject to the Notice Requirement

In general, the FLSA applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce. For most firms, a test of not less than $500,000 in annual dollar volume of business applies.⁽⁴⁾ The FLSA also specifically covers the following entities: hospitals; institutions primarily engaged in the care of the sick, the aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institutions of higher education; and federal, state and local government agencies.⁽⁵⁾

B. Providing Notice to Employees

Employers must provide a notice of coverage options to each employee, regardless of plan enrollment status (if applicable) or of part-time or full-time status. Employers are not required to provide a separate notice to dependents or other individuals who are or may become eligible for coverage under the plan but who are not employees.

C. Form and Content of the Notice

Pursuant to the statute, the notice to inform employees of coverage options must include information regarding the existence of a new Marketplace as well as contact information and description of the services provided by a Marketplace. The notice must also inform the employee that the employee may be eligible for a premium tax credit under section 36B of the Code if the employee purchases a qualified health plan through the Marketplace; and a statement informing the employee that if the employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes.

D. Timing and Delivery of Notice

Employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013. For 2014, the Department will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee’s start date.

With respect to employees who are current employees before October 1, 2013, employers are required to provide the notice not later than October 1, 2013. The notice is required to be provided automatically, free of charge.

The notice must be provided in writing in a manner calculated to be understood by the average employee. It may be provided by first-class mail. Alternatively, it may be provided electronically if the requirements of the Department of Labor’s electronic disclosure safe harbor at 29 CFR 2520.104b-1(c) are met.”

Today I will speak to a group of young military personnel who will soon leave the service and seek employment outside the military.  The U.S.Small Business Association’s Phoenix chapter of Service Corps of Retired Executives (SCORE) sponsors the two day workshop called “Operations Boots to Business from Service to Startup.”  I enjoy speaking to the young people and trading “war” stories from my five years flying the F-4 Phantom in the United States Air Force in another life.

Beginning in September I will teach another class on LLCs and entity formations to third year law students at the Phoenix School of Law.  My son Richard C. Keyt, JD, will co-teach the class with me.  I’m very proud of my son and his accomplishments at such a young age and lucky to be able to work together with him every day in our business law and estate planning law firm.