<p>Accruit, a national leading qualified intermediary and back-office managed service provider of 1031 like-kind exchanges announced two new leadership hires today.&nbsp;</p>

<p>Britton Goldman joined Accruit in a newly created role of Controller, to strengthen and automate Accruit’s finance, treasury and accounting processes. With eleven years of experience in both public accounting and finance roles, he has held a variety of senior finance roles at GE within Digital, oil &amp; gas and real estate divisions. Britton is a certified public accountant in Texas. He received his Master of Science and a Bachelor of Administration in Accounting from Texas Tech University.</p>

<p>Hired as Accruit’s new Head of Marketing, Elina Manevich brings sixteen years of marketing experience from the Silicon Valley tech scene. In the past, Elina has led marketing for several fintech companies, as well as blockchain startups. Having relocated to the Bay Area from the former Soviet Union at the age of ten, Elina is fluent in both Russian and English. She is a graduate of the University of San Francisco and holds a Bachelor of Science degree in marketing.&nbsp;</p>

<p>“We are excited to welcome Britt and Elina to Accruit. Accruit is fulfilling our commitment to company growth and unparalleled service to our clients through powerful hires and continued leadership in the 1031 exchange space,” said Patrick Frawley, CFO and COO of Accruit.</p>

<p>In addition to the new hires, Accruit’s CEO Brent Abrahm will now take on the roles of both, President and CEO, and Patrick Frawley will take on the roles of CFO and COO.&nbsp;</p>

<p>“Accruit’s newest hires coupled with strategic role expansions within the senior leadership team, sharpen Accruit’s laser focus on market share growth in the years to come,” said Brent Abrahm, President and CEO of Accruit.&nbsp;</p>

<p><strong>About Accruit:</strong></p>

<p>Founded in 2000, Accruit is the only premium, 1031 qualified intermediary which utilizes cloud-based technology to ensure the safety and security of customer data. Accruit enables investment property owners, title companies and law firms to have complete transparency into their transaction anytime via any device. Accruit’s deep expertise and over 100 years of combined industry experience in the 1031 exchange space, uniquely positions the company to handle transactions of any complexity, including forward and reverse exchanges. Accruit’s leadership is comprised of 1031 exchange experts, nationally renowned for their contribution and advocacy in the 1031 exchange arena.</p>

<p>Denver --&nbsp; Accruit, LLC announces today that it has divested its ownership and the use of the name and mark PaySAFE. Should Accruit choose to offer future transactions similar to those previously provided under the PaySAFE name, those transactions will be managed under the mark and name of Accruit or other entity not utilizing the name PaySAFE.</p>

<h2>What is a Limited Liability Company?</h2>

<p>Limited liability companies (LLCs) are the most popular choice of organizational form because of the inherent flexibility in most state statutes that enhances the ability of the entity to adopt features that best serve its objectives. LLCs are a very common choice for owning real estate because of their tax treatment, limited liability and flexibility in allocating power structure and management responsibilities.</p>

<p>The best way to understand the unique features of an LLC is to distinguish it from the other entities we’ve discussed in Parts I – III in this blog series. The principal purpose of the LLC is to obtain favorable tax benefits along with the limitation of liability.</p>

<h2>Advantages and Disadvantages of an LLC</h2>

<p>Real estate investors are well served by forming the LLC in a state that has favorable limited liability company act statutes, like Delaware (or Illinois after recent amendments to its Limited Liability Company Act). The goal is to pay no federal income tax at the entity level. An LLC provides an unlimited number of investors with the limited liability of a corporation but the tax advantages of a partnership.</p>

<p>On the other hand, significant disadvantages exist by using the corporate form for real estate investment. The individual shareholders cannot obtain any of the tax benefits generated by the investment. <a href="/blog/selecting-entity-real-estate-purchase-–-partnerships">Unlike a partnership</a>, no pass-through of the corporation’s income tax deductions exists. <a href="/blog/selecting-entity-real-estate-purchase-–-corporations">Corporation profits are also taxed twice</a> - once at the corporate level though the payment of the corporate income tax and again at the shareholder level with the shareholder’s payment of individual income taxes on the distributions received from the corporation. An LLC allows the losses and gains to flow through to the investors.</p>

<p>Subchapter S-corporations allow investors to avoid the double taxation of the corporation’s profit and the inability of the corporation to pass its income tax losses and credits on to the shareholders while still providing them with limited liability. Nevertheless, an S-corp cannot have different power allocations among the shareholders. In other words, an S-corp is a corporation that will not allow the investors to establish an unbalanced management structure. The investors can decide who will be active in decision making, operating the property and spending time on a regular, continuous, and substantial basis.</p>

<h2>How to Form and Operate an LLC</h2>

<p>Two documents are needed to form and operate an LLC: Articles of Organization and an Operating Agreement.</p>

<p>An LLC is formed by filing Articles of Organization with the applicable Secretary of State and paying any applicable fees. The Articles of Organization must comply with the enabling legislation enacted in the state under whose laws the LLC is formed. Many states allow the filing to be done electronically, others require sending the paperwork in to the Secretary of State.</p>

<p>The Operating Agreement provides for the operation of the LLC. It is the controlling document that governs the relationship between the members, managers, and the obligations of each.</p>

<p>The Operating Agreement can spell out power allocations and management responsibilities of the members and managers as well as an exit strategy. There is no need for a board of directors or elections because the members just file forms and pay fees to the Secretary of State. The LLC also creates and maintains contractual flexibility. All of the members have the authority to make management decisions unless a different power structure is adopted.</p>

<p>An LLC can be manager- or member-managed. The managers or managing-members who make management decisions on behalf of an LLC generally have limited liability protection. They are not personally liable for the debts and liabilities of an LLC unless a basis to pierce the limited liability shield exists as may be required by public convenience, fairness, or necessity. An LLC will insulate a member’s personal assets from claims of outsiders and other members.</p>

<p>In many instances, an LLC provides investors with the best entity for their individual and collective needs. Unlike a C-corporation, there is no need for a board of directors, meetings, or elections because the members just file forms and pay fees. An LLC is free from qualification restraints imposed on a S-corp.</p>

<h2>How to Dissolve an LLC</h2>

<p>LLC organizers can provide for the LLC’s dissolution on a fixed date in the filed Articles of Organization or continuation in existence until dissolved by the consent of the members or on the occurrence of an event specified in the Operating Agreement. Insofar as the payment of claims, members can arrange for the liquidation of an LLC’s assets to pay current claims, fund reserves for the payment of contingent claims, and determine the proportion of the remaining assets distributable to each member based on the member’s capital account or other measure specified in the Operating Agreement. When the members are ready to wind down and terminate, an LLC can proceed to file Articles of Termination with the applicable Secretary of State after claims have been paid and all remaining assets have been distributed to members, file a Certificate of Cancellation canceling the LLC’s Certificate of Authority to transact business in states other than the state of its organization (if any), and arrange for the filing of a final income tax return for the LLC.</p>

<h2>Summary</h2>

<p>The LLC generally provides real estate investors with a superlative choice for their individual and collective needs. Nevertheless, individuals should consider the following factors in their entirety when selecting the business entity for purposes of owning real property:</p>

<ul>
<li>How long the investors wish to keep the property</li>
<li>Nature of the relationships between them</li>
<li>Personal liability</li>
<li>Tax treatment</li>
<li>Management structure</li>
<li>Number of investors</li>
<li>Duration of the entity</li>
<li>Exit strategy</li>
<li>Allocations of power within the entity</li>
<li>Any other special provisions</li>
</ul>

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<p>&nbsp;</p>

<p>Accruit Executive Vice President Max Hansen and Associate General Counsel Jordan Born are in Washington, DC for the Federation of Exchange Accommodators' mid-year meeting. On March 12, they will participate in educational sessions on topics surrounding taxes and opportunity zones. On March 13, FEA members will visit Capitol Hill to discuss the importance of 1031 exchanges with members of Congress and their staff.</p>

<p><a href="http://www.1031.org/FEAPdfs/Events/MYM-2019/FEA_Midyear_Meeting_Agenda-…; target="_blank">View the FEA 2019 Mid-Year Meeting Schedule</a></p>

<p>Accruit Executive Vice President Max Hansen is program co-chair of this fourth annual seminar designed to provide insight into those issues most commonly faced when buying and selling ranches in Montana.</p>

<p>This seminar and its carefully selected faculty is designed to provide insight into issues most commonly faced when purchasing agricultural assets in Montana, including: public access, environmental issues, water rights, due diligence problems, financing, and succession planning.&nbsp; Anyone involved in the buying and selling of agricultural properties in Montana would be well served to attend and catch up on the latest in buying “a piece of heaven.”</p>

<p><a href="https://www.theseminargroup.net/seminardetl.aspx?id=19.ranMT&quot; target="_blank">Buying and Selling Ranches in Montana seminar registration page</a>.</p>

<p>Accruit board member <a href="/about-us/board-directors#joe">Joseph Lane</a> was named vice chairman of <a href="http://www.napierparkglobal.com/&quot; target="_blank">Napier Park Global Capital</a> and appointed to the firm's leadership team as a member of the Management Committee.</p>

<p>A managing director in Napier Park's Real Assets group, Joe has over 35 years of experience in financial services. He has previously served as CEO of GE Technology Finance and as president of IBM Credit Corporation. Joe has been director and chairman of the Equipment Leasing and Finance Association (ELFA), and chairman of the Equipment Leasing and Finance Foundation. He was elected to the Equipment Finance Hall of Fame in 2015.</p>

<p><a href="https://www.monitordaily.com/news-posts/lane-named-vice-chairman-of-nap…; target="_blank">Read the full article in the Monitor Daily</a>.</p>