more on AES radio / comment on sole proprietorship / Schedule of Equipment and Services April 3, 2018

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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more on AES radio / comment on sole proprietorship / Schedule of Equipment and Services
April 3, 2018
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more on AES radio from March 29, 2018 article
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Ken
    I am responding to your comments about the AES network in the March 29, 2018 article. There are a couple ways AES works. You can contact them and set up your own network which has an expense somewhere in the vicinity of $20,000+ in start up costs. There are some issues that come along with this as you are building a network from scratch. The radios act as repeaters but you have to be able to hit one of your radios in your network in order to get the signal back to the central station. Also with a fire alarm system, you have to be able to hit two radios as this is considered your dual path. It is quite a large endeavor getting a network set up. 
    The other way is to piggy back off an existing network that a central station uses which is open to any one using that central station. In my opinion, this is the better option as the network is already established. In the past, the issue with this is that any company could come in and take over the radio and the monitoring. With the latest version of AES radios, the company has allowed you to lockout the radio so if another company tries taking over the account, they have to replace the radio.
    Sincerely,
Joseph Correia
Maine Fire and Security, LLC
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comment on sole proprietorship
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Ken
    I saw Adam’s comment in your March 10, 2018 newsletter in which he said that he was a sole proprietorship because, in his words, 
    "With the amount of clients I have and the nature of my work (95% CCTV cameras) I thought that was best."
     I am hoping that he follows through and makes that appointment with you because you will not only explain to him the legal ramifications of operating as a sole proprietorship, you will also warn him that a C Corporation is not the proper entity for the Security Industry. Adam, go to Ken for your advice, don’t use just any attorney. If you call us we can advise you as to the proper taxable entity. The election of a taxable entity comes after Ken sets up the corporation and it is critical that you do it properly because fixing it afterward is not easy. Make sure that both your attorney and tax advisor understand what you do, otherwise the consequences could be serous.
Mitch Reitman
Reitman Consulting Group
Fort Worth, TX
817-698-9999
http://www.reitman.us
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Schedule of Equipment and Services
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Ken
    Thanks so much for all of the info! Where would I find "see schedule of equipment?" And do I have to have the persons SS or EIN number filed out if they are opposed to it? You have been so much help I look forward to purchasing some more contracts.
Anthony 
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Response
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     You don't have to get the ss or tax id number.  I covered that in another article.
    There is no room on the All in One for the list of equipment.  We provide room in the Schedule of Equipment and Services, which is a separate rider to the All in One.  If you use a proposal you can use that as your Schedule of Equipment and Services because usually the proposal will lay out that information.  Reference to the Schedule of Equipment and Services is in the first paragraph that deals with the Sale and Installation, and it's referred to in several other places in the All in One Agreement.  The Fire All in One also incorporates the filed plans and specifications and AHJ requirements. 
    When you first get the All in One forms give them a chance before you start making changes.  Your impulse is going to try and modify the forms to adhere to what you've been using or what you think may be a better idea.  Most changes that are made are not a good idea; most changes end up causing confusion or less protection.  Updated contracts address the latest technology and changes in the law.  The contracts are worded in very specific ways and you should not be making changes without being very careful.  I am willing to review changes [some] at no charge, so you should run the changes by me or my staff of attorneys before committing to the change.  Of course you can add some sales or marketing ideas, such as level of service and charges, etc, but, again, you should be careful making changes.  
    You should read the contracts carefully [we do make mistakes from time to time].  Be comfortable with the wording and the layout.  After some consideration we can discuss changes.  
    How do you know if you've made too many changes for your own good?  If your change took more than 15 minutes I suggest you re-think your modifications.  You bought the Kirschenbaum TM contracts because they are the most recognized and accepted forms in the industry, by central stations, insurance companies and potential buyers.  Hopefully you didn't buy the form so you could use it as a starting point to make changes after working on it all weekend.  I already worked on it for over 40 years, and you're not going to spend that much time on it.
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THE ALARM EXCHANGE

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com