While in most states the formation of a simple Limited Liability Company (LLC) can protect licensed individuals (Governed by a State Board) from personal liability for business debts and claims, Arizona requires a Professional Limited Liability Company (PLLC) rather than an LLC.

Q. What is the difference between an LLC and a PLLC?
A. A PLLC is an LLC organized under Chapter 4 of Title 29 of the Arizona Revised Statues for purposes that include rendering one or more categories of service that may be lawfully rendered only by a person licensed or otherwise authorized by a licensing authority in Arizona to render the service. The PLLC specifies that in those cases where only a person licensed or otherwise authorized by a licensing authority in Arizona to render one or more categories of service may do so, a PLLC must be used (A.R.S. 29-843).

Q. How do I form a PLLC?
A. A PLLC is formed via the same forms as an LLC, available from the Arizona Corporation Commission or a document service provider like LLC Protection Services. First, one must fill out and file the Articles of Organization and include key information that the Arizona Department of Real Estate requires. After filing the Articles of Organization a Notice of Filing must be published (Notice of Publication) in a newspaper of general circulation three times with 60 days from the received date of the filing (State Law). In addition, after publishing, one must file with the State of Arizona Department of Real Estate Form LI-231 (Name Change), Application for a License as a Professional Limited Liability Company (The Real Estate Agent’s Name Followed by PLLC). The form is available at the Arizona Department of Real Estate and has a $10.00 processing fee.

Q. What is the difference between a PC and a PLLC?
A. A Professional Corporation (PC) is a corporation where you are both an officer and an employee of the corporation. The PLLC is an organization where you are a member and owner, not an employee.

For questions about forms and pricing, visit www.LLCFilingServices.com or call 602-235-0079 today.

Note: LLC Protection Services is a document provider, NOT a document preparer and their fees cover the providing, filing, publishing, and all the administrative services needed to form your LLC or PLLC Articles of Organization.


In 2007, 16 million Americans rented vacation homes. It’s no doubt renting a vacation home can be a great bargain given the average square foot costing a lot less than a hotel room. Plus there is the added convenience of a full kitchen, dining area and extra bedrooms or bathrooms for those traveling with their family. As any parent of small children can attest, there is an undeniable benefit to not having to eat out all three meals or having to share a space that doesn’t allow the parents and children a quiet and private space to relax.

But what does this mean to an investor? Right now there are fire sales going on in most vacation destinations. According to the Wall Street Journal, “There are some amazing discounts around. You can find properties selling for prices last seen in the late 1990s.”

Most investors are aware of the capital gains tax deferral benefits of a 1031 exchange. Historically you could only exchange property held for investment or used in a trade or business. Earlier this year the IRS recently issued a new ruling providing guidelines for individuals wanting to use a 1031 Exchange for their vacation homes. The ruling released in Rev. Proc. 2008-16 (a Revenue Procedure) details the steps a taxpayer must take in order for the IRS not to contest the investment standing of their vacation homes. (Read the full Rev. Proc. here). Guidelines issued by the IRS at a glance are:

You must have owned the property you are replacing for a minimum of 24 months

You must own the replacement property for a minimum of 24 months.

In each 12 month period for the existing and replacement properties 1) the taxpayer rents the dwelling unit to another person or persons at a fair market rental for 14 days or more, and 2) the taxpayer’s personal use of the dwelling unit does not exceed the greater of 14 days or 10 percent of the number of days during the 12-month period that the dwelling unit is rented at a fair rental.

If you plan on taking advantage of this incredible buyer’s market and if you plan on purchasing a home for vacation purposes, it is essential that you keep accurate records of the rental history and the days you occupied the unit for maintenance purposes and your personal use days. If you allow friends or relatives to use your property without paying rent, it will count against your personal use days. If you stay within the IRS guidelines the IRS and consult with your tax professional, you can pick up a great property at a great price, defer taxes and build a lifetime of memories for your family!


While tax rebates of up to $600 per person the centerpiece of the Economic Stimulus Act of 2008, the new law also provides two significant tax incentives for business. The first is Code Sec. 179 expensing. Before the new law, a business could deduct (“expense”) up to $128,000 of the cost of depreciable tangible personal property used in the active conduct of a trade or business in 2008. The new law almost doubles the amount of deductible Code Sec. 179 expensing for 2008 to $250,000 and increases the threshold for reducing the deduction to $800,000. It applies to property purchased and placed in service in tax years beginning in 2008. Eligible businesses for this one-time tax code change for 2008 include sole proprietorships, partnerships, and corporations.

Depreciable tangible personal property is simply equipment that is 1) used in your business or income-producing activity, 2) have a determinable useful life, and 3) must have a determinable life of longer than one year. Items such as cars, trucks, computer equipment, and more qualify. See IRS publication 946 for details.

The second tax incentive for small businesses is “bonus depreciation”. Businesses can depreciate 50% of the value of a specific asset in the first year in 2008, up from the typical 20%. The property must be purchase and placed in service during 2008. Eligible properties that can be used for this deduction include machinery and equipment (vehicles over 6,000 lbs), furniture and fixtures, and most storage facilities. Examples can include other vehicles and computers.

It’s not what you make, it’s what you keep. The fact is that most small businesses overpay their taxes because they don’t understand the tax rules game. A little time spent in educating yourself in legal deductions can add thousands to your bottom line.


According to Senate Bill S. 2888 - The Foreclosure Rescue Scam Act of 2008, anyone who performs “any service that such person represents will prevent, postpone, or reverse the effect of such foreclosure” is a “foreclosure consultant”. Foreclosure consultants will not be allowed to “acquire any interest, directly or indirectly, in the residence of a homeowner”. And there is much more those actively in or thinking about the pre-foreclosure business need to know. You can read the entire Bill introduced on April 17, 2008 here.

What can you do? Write to your Senator (locate your Senator here). Also consider visiting www.responsibleinvestors.org to join the National Association of Responsible Home Rebuilders and Investors (NARHRI). NARHRI is a Washington, D.C.-based association representing independent real estate investors, state real estate investor clubs, real estate speakers, and corporations with interests in real estate investing. NARHRI's goal is to unify honest, professional investors and protect consumer interests, while at the same time defending the industry from over-zealous legislative and regulatory proposals. NARHRI's national network of lobbyists educate investors, lawmakers, government officials and the media about the benefits of the industry and the best practices for weeding-out rogue investors.


There are three websites every Arizona investor should know about. First, the Arizona Corporation Commission business lookup site here. When someone incorporates there is a public record. It is available online in most states. You can look up business names, find out who the registered agent is, and find out when it was incorporated.

The second is www.FINRA.org. FINRA, the Financial Industry Regulatory Authority, oversees all securities licensing. They have a BrokerCheck system where you can lookup and you can learn the status, background, and disciplinary history of securities firms and brokers. Anyone with a securities license will be in this database.

Third, and arguably best, is the Arizona Corporation Commission Securities site here. This site has a wealth of information on securities rules, scams, enforcement orders, as well as investor education.


Article Archive Homeownership Accelerator
10 Factors to Entrepreneurial Wealth
Skimming: The New Identity Theft
Coastal Highway Update 02/20/2008
A Visit To El Golfo
What is FOREX Trading & How Can I Profit?
Ladies Who Launch
Lease Options & Equitable Interest
The Five Biggest Marketing Myths
Three Myths About Retirement Security
Bill Iannelli's Phoenix Market November Update
Investment Tips from Professor Goodner
Rocky Point Update 03/13/2008
Rocky Point Update 02/14/2008
Rocky Point Update 12/27/2007
Rocky Point Update 12/06/2007
Rocky Point Update 11/15/2007
Rocky Point Update 11/01/2007
Rocky Point Update 10/25/2007
Our MLM Selection ProcessIRA Investing
Housing Market Through 2007
Private Money
What's Your Name Worth?
Backing Up
About Short Sales

The United States owes much of its greatness to entrepreneurs and small businesses. People from all over the world make great sacrifices to come here because they have the freedom to pursue building their own businesses and take control of their own destiny. Small businesses employ over 50 percent of the private work force, contribute over half of all sales in the country, and are responsible for over half of the private gross domestic product.

Businesses have far better tax advantages than individuals. Owning a business enables gives people great tax write offs. It can include all the things you use in your business, such as your cell phone, internet, car, and so on. Even part of the expense incurred for meals eaten while working are a write off. Depending on your entity structure, you can reimburse yourself for all medical insurance and medical expenses. The list is endless.

Just about every financial education guru out there advocates having your own business. One reason to start a business is to develop multiple streams of income. In fact, small business owners can earn significantly more than a salaried employee. Another is to become an employer, not an employee. Then you have the small businesses that grow to national icons. McDonalds, Walmart, Staples, Estée Lauder, Ben & Jerry’s, Dell, and so many others all started small.

Taking the entrepreneurial plunge is the ultimate in exercising the freedom we have in this country. In a way, it could be considered an act of patriotism. If you’ve been thinking about launching a venture, perhaps it is time to take action.

"The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer."
- Nolan Bushnell, founder of Atari and Chuck E. Cheese's

"The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it."
- Debbi Fields, founder of Mrs. Fields Cookies

"We were young, but we had good advice and good ideas and lots of enthusiasm."
- Bill Gates, founder of Microsoft Corporation

"Nobody talks about entrepreneurship as survival, but that's exactly what it is and what nurtures creative thinking. Running that first shop taught me business is not financial science; it's about trading: buying and selling."
- Anita Roddick, founder of The Body Shop

"I had to make my own living and my own opportunity! But I made it! Don't sit down and wait for the opportunities to come. Get up and make them!"
- Madam C.J. Walker, creator of a popular line of African-American hair care products and America's first black female millionaire


On July 23 the IRS announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008

Mileage Rate Changes

Purpose	Rates 1/1 through 6/30/08	Rates 7/1 through 12/31/08
Business	50.5	58.5
Medical/Moving	19	27
Charitable	14	14

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Either way, be sure you are keeping good records. You don't have to invest in an elaborate record keeping system. Keeping the expense verification you'll need for tax time can be as simple as entering the data in a diary or account book. The key here is to faithfully enter the expenses. It's also a good idea to keep evidence -- receipts, cancelled checks, bills -- that, along with your records, supports your expenses.



In the last few years we have witnessed a rise and subsequent correction in both the stock and real estate markets. This has left investors either more wealthy, poor, or in limbo. As this article is being written in the spring of 2008, the correction continues in both sectors. In addition, the price of oil is well above $100 a barrel. Our U.S. Dollar continues to weaken and inflation is affecting our everyday lifestyles.

Does this mean that the sky is falling? Of course not, we have seen numerous economic cycles in our history, and no matter what, there are two things you can count on, investments become under valued or over valued. One investment, which has gone up at this time, shows no signs of topping out. This is silver, both in physical as well as in paper form (stocks).

Since the year 2002, the price of silver has steadily risen from $6 an ounce to a current price range of $16-$18 per ounce, and most of the top tier silver mining stocks have had gains well over 100%.

Despite all this, most investors are unaware of these games. This is due to the fact that silver gets little to no exposure in the main stream financial press, which seems to be enamored with the stock market, real estate, oil, and even silver’s big brother gold.

The positive side of all this is there are many people that have yet to participate in this current bull market, thus creating some terrific profit potential for those investors willing to take a position at this present time. One of the rules most successful investors stress over and over again is to know what you are investing in.

That being said, I will briefly explain some uses for silver as well as why silver investing makes common sense at this time.

1. Water Purification. Silver ions have been used to purify drinking water and swimming pools for generations. Today, silver is used in over half of the water purification systems sold in this country. This is due to silver helping prevent build up and algae in the filters.


2. Medicine and Health. According to medical studies in the 1970’s, it was discovered that silver ions promote bone growth and kill surrounding bacteria. Further research shows antibiotics can kill perhaps a half dozen disease organisms, but silver can kill over 600. There are companies currently developing hospital wear lined with silver particles to prevent hospital related infections.


3. The Burning Sun. A major factor living here in Phoenix is the, “I can fry an egg on the sidewalk” weather. One of the ways to fight off the rays of the sun is with invisible silver, which is a transparent coating of silver on double pane thermal windows. Besides fighting off the rays, it also reflects interior house heat.

Some of the reasons to consider taking a position in this sector include supply and demand, affordability, and main stream exposure. I’ll talk about them next.

Since 1990 the amount of silver needed has outstripped its supply, this is due to two factors, silver usage has increased and mining production slowed down in the 1980’s and 1990’s. In addition, the U.S. Government is currently out of silver, so in order to keep its silver American Eagle program going, they must purchase silver in the open market.

Unlike gold, which is currently in the $800 range, silver is still under $20 per ounce. Thus, with a few hundred dollars, an investor can ride the bull’s back.

Many Wall Street firms have instigated coverage on the top tier silver mining stocks. Thus money managers, financial advisors, and stock brokers who need new places to invest their client’s money can now look at this sector. This provides more exposure to the general investing public.

Exposure to BOTH, physical silver and silver mining stocks, can help bring balance to an investment portfolio. This in turn can provide more protection in these uncertain economic times.

While nothing is guaranteed, there are some trends we can see from the past. If you were to invest $10,000 of silver in 2002, it would be worth over $30,000 today, and a $7,000 investment in Pan American Silver (PAAS) would now be worth around $35,000. (Past performance is not a guarantee of future results).

Eric Aceves has worked in financial services since 2001 as a financial planner and as a retail stockbroker. Even though Mr. Aceves monitors the overall stock market, he still believes silver is one of the most undervalued investments at this time. Mr. Aceves is only a consultant, not a Broker or Dealer, and charges accordingly.

Eric Aceves, Silver Consultant
Direct: 480-734-8356







The Gulf Opportunity (GO) Zone Act of 2005 contains significant economic incentives to rebuild 11 counties in Alabama and much of the Gulf Coasts in Louisiana and Mississippi following the devastation of Hurricanes Katrina, Rita, and Wilma. Federal and state incentives include bonus depreciation, special treatment of net operating losses, loan forgiveness, and low income housing credits. For investors looking to reduce their tax bill with properties that will increase your balance sheet, the GO Zone might be right for you.

Bonus 50% Depreciation
The GO Zone Act allows a 50% bonus depreciation allowance for GO Zone business property that is placed in service before 2008 (before 2009, for nonresidential real and residential rental property) AND exempts such depreciation allowances from the alternative minimum tax.

What does Bonus Depreciation do for your bottom line? Here’s an example of a duplex:

Purchase Price $200,000
Lot Value (20%) 40,000
Improvement $160,000

Bonus Depreciation = $160,000*.50 = $80,000

Tax Savings at 25% Tax Bracket = $20,000
Tax savings is money in put your pocket due to the deduction.

Treatment of NOL Losses
Net Operating Losses (NOL) attributable to GO Zone losses. The Act extends the NOL carryback period from two to five years if a portion of any NOL for any taxable year is a qualified GO Zone loss..

Loan Forgiveness Program
Mississippi has implemented a Small Rental Assistance Program (SRAP) that forgives your loan up to $40,000 per unit. You do need to hold the property for 5 years and there are rent control provisions.

Low-Income Housing Credits
The original act provides for an increase in the housing credit dollar amount for low-income housing located in the GO Zone for 2006, 2007, and 2008. Senate Bill S. 1180: Workforce Housing Construction for the GO Zone Act of 2007 introduced last year proposes extending the GO Zone low income tax credit until 2010.

To find out more about GO Zone properties and how they can increase your balance sheet while reducing your tax bite, contact Christine Arrington, Keller Williams Realty Centreville at 703-587-4817 or Chris.Arrington@kw.com.


Ken Fisher’s 2008 2nd half economic and stock market analysis and predictions, including when in history the current environment most closely resembles, overblown worries, and real risks, is available for download here. Learn his forecast for what emergent trend could determine beating the market or lagging, the degree to which housing market swings affect consumer spending , and how and why prior presidential elections have affected stocks.

A Hedge Fund is an aggressively managed portfolio of investments that uses advanced investment strategies such as leverage, arbitrage, long, short and derivative positions in both domestic and international markets with the goal of generating high returns. Reserved for accredited investors, hedge funds have spectacular returns on a good day and require a federal bail out on a very bad day.

Long-Term Capital Management was a hedge fund founded in 1994 with enormously successful with annualized returns of over 40% in its first years. In 1998 it lost $4.6 billion in less than four months and became a prominent example of the risk potential in the hedge fund industry. There is a great Wiki page on the debacle here.

If you’re thinking about investing in a hedge fund, take a few minutes to educate yourself by perusing the Hedge Fund Implode-o-Meter here and Hedging Your Bets: A Heads Up on Hedge Funds and Funds of Hedge Funds here