New Hampshire Attorneys Mcgrath Law Firm Concord NH

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WHY YOUR SINGLE-MEMBER LLC NEEDS AN OPERATING AGREEMENT

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Limited Liability Protection is not always granted to protect your assets from third-party creditors even if there is a validly formed LLC.

Here are some additional steps that you can take to ensure your asset liability protection.

Proper Organization of the LLC

In order to properly form a LLC, you must first file an Articles of Organization with the Secretary of State and receive a Certificate of Existence. While some think the Articles of Organization can be easily attained by filling out a questionnaire online, this is not a safe and efficient way to protect your assets.

CAUTION: Consult an Experienced Corporate Formation Lawyer to achieve proper formation and asset protection.

To preserve your limited liability protection while forming the Articles of Organization you will need a Federal Tax Identification Number, a separate bank account specifically for the LLC, and to ensure you keep your personal and business affairs separate.

If  you do not have all of these things the court will not protect your assets, such as your home  or bank accounts, against creditors from a lawsuit. The first two are simple, however the last requirement will require additional steps.

Separating Business Affairs from Personal Affairs with an Operating Agreement

To ensure you are perceived as an agent of the corporation, and to preserve asset protection, you must show you are keeping your business affairs and personal affairs separate. One of the best pieces of evidence to present to the court is an Operating Agreement.

Think about it, if someone asks you how you run your business or the structure of the business, you should be able to present to them a written document that outlines those features. This would be the operating   agreement.  An Operating Agreement is essentially a contract that shows the structure of the  organization.

If you do not have an operating agreement, your state’s default rules will outline the structure of your business. While  this may not be the  worst scenario, the default rules are generic and can often generate unsatisfying  results.

Additionally, some banks require an operating agreement to set up a bank   account.

When it comes to protecting your business, you do not want to cut corners and hurt yourself in the long run. Anything worth doing is worth doing right . Protect your home, bank accounts, and other important assets by consulting an experienced corporate attorney before filing a single member LLC.

McGrath Law Firm has extensive experience protecting its clients when structuring your business.

4 Tips for Developing a Divorce Action Plan

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When you decide to file for divorce, the following weeks can turn into a heated whirlwind of legal battles and high emotions. That’s why it’s important to develop an action plan and stick to it before proceedings begin. Here are four tips on what to do and what to avoid .

1.      Consult With a Divorce Attorney

Divorce cases are rarely black and white. There are dozens of factors that go into making important decisions such as, child custody and spousal support. Therefore, it is essential to consult with a divorce attorney even if you and your spouse are on amicable terms. Certain disputes are simply best resolved with the help of legal aid.

2.  Document Everything

Once you’ve decided to file for divorce, it ‘s important to start keeping physical records of of everything that could be relevant in court.

Some examples include:

  • Communications: Keep track of dates, times, and content of all communication with your spouse including phone calls, emails, and text messages.
  • Expenses: Record all expenses you encounter while your divorce is pending so the court knows what support you may be entitled to.
  • Visitations: Record the date and times of all visitations you or your spouse has with your children. This can be essential for determining child custody in the future.

3.  Protect Your Privacy

After filing for divorce, and once your spouse has been served, your privacy may be the first thing to go. There are a few important steps you should take to protect yourself, such as:

  • Change all of your passwords on mobile phones and computers, especially social media and financial websites
  • Place a verbal password on all credit cards and financial resources with a multi-factor authentication.
  • Change your house alarm code if you live alone.

These are just some of the most important steps to take when filing for divorce, however every case is different. Talking to an experienced family law attorney should always be the first step when filing for divorce. Contact us today to find out how we can help.

Can an unlicensed real estate agent/broker lease short term rentals like Airbnb?

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Is a real estate salesperson/broker license needed for short term rentals?

In a historic decision, the Superior Court ruled in favor of the McGrath Law Firm’s client. Client was accused of violating civil and criminal regulations and laws regarding short term rentals of Airbnb and Homeaway properties for failing to maintain a real estate salesperson or broker license. McGrath Law Firm through Attorney Daniel Corley argued before the New Hampshire Real Estate Commission and Superior Court that our client did not need to obtain a real estate salesperson or broker license to provide rentals through Airbnb or Homeaway properties.

The New Hampshire Real Estate Commission disagreed and attempted to enforce a subpoena requesting information on the rentals and refer the matter out for felony prosecution. Attorney Corley argued that Real Estate Commission lacked jurisdiction to conduct a hearing and issue a subpoena for short term vacation rentals booked through Airbnb and Homeaway. The Superior Court upon review found that “no statutory grounding to regulate such hotel-like transactions because they do not involve an interest in real estate. RSA 331-A:2 and 3.”

The Court held: “The Court agrees with [client] that the Commission lacks jurisdiction to license and discipline persons who want to, advertise and manage typical Airbnb and Homeaway bookings for third party owners.” As the Court noted, “the statute is ambiguous with respect to the definition of an offense”. If each Airbnb or Homeaway transaction for an overnight stay is an ‘offense’, the maximum available civil penalty could be enormous.” The Court also held that the client is also not liable for any criminal offense. The Court held that “the Commission only has licensing disciplinary jurisdiction over the person who act, directly or indirectly, as [real estate brokers] or [real estate sales] people. RSA 331-A:3. The term lease and real estate includes “leaseholds and all other interest or stakes in land or business opportunity which involve any interest in real estate.” RSA 331-A:2. The Court held that the typical Airbnb, Homeaway or BRBO transaction does not create a leasehold or interest or stake or estate in land. This is true regardless as to whether the transaction is captioned as a short term rental.

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Licenses for short term rentals are a legislative matter

As previously argued by Attorney Corley before the Real Estate Commission, this is a legislative matter and the Court agreed. “To be sure, the legislature has not yet developed a comprehensive statutory scheme to govern the rapidly changing practice of ‘home sharing’ but the Commission cannot fill lacunae in our statutes by pretending that the revocable license to occupy a dwelling, or a room in a dwelling-i.e., the legal equivalent of a license that a movie theater grants to its patrons is a leasehold interest in land.” Furthermore, requiring a real estate broker’s license in order to “market, broker, manage or sale Airbnb-type rentals would raise constitutional concerns.” See State of New Hampshire v. Kerri McCauley, Merrimack Superior Court, 217-2020-CV-00177, Judge Andrew R. Schulman, Date of Decision October 7, 2020.

The seasoned lawyers at the McGrath Law Firm, founded by attorney Peter McGrath, will walk you through your legal matter to address your concerns and achieve your goals as efficiently as possible. Daniel Corley and the experienced attorneys at McGrath Law Firm can assist with your estate planning. Call us to schedule your consultation at (603) 224-7111.

Estate Planning

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Estate planning -now is the time!

Estate Planning signing

Taking care of your family should be of the utmost importance at this difficult time. Proper estate planning will reduce your stress and avoid expenses, hassles and conflict later. 

Your estate plan can direct exactly where your assets are to go in the event of your death or disability. An estate plan will provide you with the comfort of knowing that your assets will go to the right beneficiaries.

An estate plan will avoid questions or disputes that would most likely have to be resolved by the courts otherwise.

Reduce Taxes and Costs.  

An estate plan will avoid your assets being tied up and can help avoid probate taxes and fees.  You can minimize the expenses and taxes when you create an estate plan.

You should be able to keep the cost of transferring your property to a minimum and also ease the burden on your family.

It is stressful and difficult to plan for the funeral of a loved one when grieving, with an estate plan you can outline your wishes for burial or other funeral arrangements and take some of the burden off of your family at a difficult time.

Prepare for incapacity.

A proper estate plan includes durable power of attorney for health care and a power of attorney for financial matters.   If you should ever become mentally and/or physically incapacitated, an estate plan can outline your wishes regarding your life and who will make medical decisions on your behalf.

Decide Now Who Will handle your Affairs.

By crafting a proper estate plan, you can establish a trustee or representative to handle your financial matters and make that decision now so you can sleep well at night.  You can provide for those who need it most, such as a child who has a disability or other person you want to specifically provide for. 

Blended Families  

We see this issues more and more often recently. Many people have multiple children from different spouses. Without an estate plan children can be in conflict and may not be provided for as you wish.  With a plan, you decide what goes to whom and when, and what children from a prior marriage may receive when you pass away.

Contact us!

The seasoned lawyers at the McGrath Law Firm, founded by attorney Peter McGrath, will walk you through every step of the estate planning process to address your concerns and achieve your goals as efficiently as possible. Juli Hincks and the experienced attorneys at McGrath Law Firm can assist with your estate planning. Call us to schedule your consultation at (603) 224-7111.

Divorce: When Should I See a Divorce Attorney?

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When should I see an attorney?

Hiring a Divorce Attorney and the decisions and agreements you make during your divorce will have a lasting impact on your life.  Your divorce can affect finances, property ownership, future income, and taxes—and, if you are a parent, the lives of your children.  As a result, we recommend that you meet with one of our attorneys for a consultation as soon as possible in the divorce process.  Talking to an attorney in the early stages helps you learn more about your legal rights and can make sure you don’t accidentally agree to give up those rights.

This is true even if you believe that you and your spouse will be able to agree on the terms of the divorce.  Further, we often find that clients aren’t aware of the broad range of property that can be divided in a divorce, and without proper legal advice from a divorce attorney, they would have left money “sitting on the table.”

Process of Choosing the right Divorce Attorney

Should you seek to hire a divorce attorney to represent you fully during your divorce or handle settlement arrangements and represent you in court, this initial consultation serves as an excellent interview.  It will help you decide whether the attorney is a good fit for you.

Know your rights!

If you are considering handling your divorce on your own, we still recommend having at least one consultation with our attorneys to ensure you know your legal rights.  In addition, depending on the issues you are facing, you may want some additional help. Our attorneys can assist you on a limited basis, providing advice and document review as needed, while you represent yourself in negotiations and in court.  However, if your divorce is not complex, or if funds are tight, this can be a good way to protect yourself while saving money.

It is important to note, one consultation can save you money and time. Please call us. Our attorneys will be fully on your side and make sure you know your rights and your options!

Contact us!

The seasoned family law and divorce lawyers at the McGrath Law Firm, founded by attorney Peter McGrath, will walk you through every step of the challenging divorce process to address your concerns and achieve your goals as efficiently as possible. From spousal support, child support, fault, and equitable division of property and debt to valuations, prenuptial agreements, annulments, and restraining orders, Juli Hincks and the experienced attorneys at McGrath Law Firm have a successful track record in all aspects of divorce law. Call us to schedule your consultation at (603) 224-7111.

Social Media and Divorce – Just Don’t!

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Do not let emotions take over your social media accounts

Social media and divorce can be a dangerous combination. As you know, divorce is a highly emotional process.  Feelings of anger, pain and betrayal are all too common.  When we have these feelings, our instinct is often to turn to social media so that we can vent our emotions or ask for support. Due to feelings of grief or longing for the person we are divorcing lead us to look at their social media pages and even to comment.

This behavior can easily backfire. While you may have your ex blocked on social media, there are likely people who can view your account who might feel sympathetic towards your ex and share information. 

Furthermore, your posts and comments can seem threatening to your ex, and are upsetting to family, friends, and children. All of this puts you in a poor position when discussing property division or parenting plans—your ex may be less flexible in negotiations, or even become unwilling to negotiate, and try to use your social media posts against you in court.

Additionally, it isn’t only negative social media posts that can backfire.  Sometimes, even happy posts can upset your divorce proceedings.  For example, posting on social media about partying and drinking can allow your ex to call your judgment into question during parenting discussions. Similarly, posting photos of yourself on expensive vacations or with your fancy new boat can give your ex ammunition to use against you when dividing up property.

Finally, if you are dating during your divorce, keep your relationship off of social media. Changing your relationship status or posting couple photos can cause a jealous reaction, even if your ex was the one who initiated the split. 

Contact us


The seasoned family law and divorce lawyers at the McGrath Law Firm, founded by attorney Peter McGrath, will walk you through every step of the challenging divorce process to address your concerns and achieve your goals as efficiently as possible. From spousal support, child support, fault, and equitable division of property and debt to valuations, prenuptial agreements, annulments, and restraining orders, the experienced attorneys at McGrath Law Firm have a successful track record in all aspects of divorce law. Call us to schedule your consultation at (603) 224-7111.