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Adding electrical service to your contract / Tenant with alarm contract evicted Schedule Free meeting at ISC / Round Table Discussions at ISC 
February 21, 2020
Adding electrical service to your contract
            We are a 25 year old alarm company in Texas.  We have roots in electrical and are going to set up a new electrical contracting and service company. I am registered with the state for alarms and also hold a master electrical license. Some of the techs would be licensed in both alarms and electrical and would perform services in each field. 
            Is there any reason to set up a separate company or can we just add the electrical department to the existing company?  Any insight from you or anyone else out there would be appreciated.                       Anon
            There may be tax implications that I am not considering.  Mitch Reitman would be best to answer from that perspective.
            Looking at an end game, it’s likely that you’d be selling the alarm accounts based on RMR, and you could do that even if that was only part of the business.  Hoping to find someone to keep the two operations going  may be more difficult than selling the pieces, especially the alarm accounts, which will be easy to sell [if you have the right contracts]
            If it’s liability you’re concerned with then two companies could be the answer to shield one from the liability of the other, but that will also depend on whether you truly operate as two entities, and not as one.  Sharing offices, phones, employees, bank accounts, will make it easy to pierce the corporate veils and treat the two companies as one.  If you do operate properly then you will accomplish protecting one company from the liability of the other. 
Tenant with alarm contract evicted
            I have a question, I have a facility that’s a restaurant and bar that went bankrupt and the contracts were signed by the tenant, who has been kicked off site by the owner.  This owner wants to change all the passcodes to the fire panel so they can’t access it. Will the existing contracts be void since the tenant doesn’t own or run the restaurant anymore and I can get a new agreements signed by the owner?
            The questions seems more academic than real life issue.  I don’t think the tenant has much interest in the alarm system at this point, and in fact it’s really just an open liability [except for the bankruptcy].  Technically, if the tenant went bankrupt you could reach out to the Trustee and find out if the Trustee wants to assume or reject the alarm contract.  I am confident that if you get an answer it will be that the Trustee has no interest in the alarm contract, or, according to you, the premises from which it was evicted.  You may want to be overly cautious and find out if the Trustee is going to try and reinstate the lease and resume possession.
            You need to get the owner to sign a contract immediately.  The owner needs the fire alarm and right now you are providing that service without a contract.  Give the owner one day to sign or shut down the monitoring and notify the AHJ.

Schedule Free Private meeting while at ISC with Ken Kirschenbaum - still a few open times:
            I am scheduling free meetings at ISC now for March 17, 18 and 19, 2020. The meetings are free and scheduled in half hour increments.  Any issues can be discussed or just stop by to chat.  To reserve a time please contact Stacy Spector,Esq at 516 747 6700 x 304 or

Round Table Discussions while at ISC, at Palazzo Hotel.  Free to participate.  Space very limited so book now.  Call Stacy Spector,Esq at 516 747 6700 x 304 to reserve your seat.  [other topics may be announced]
Round Table:  March 18, 2020 at 11 AM.  Join Morgan Hertel, VP of Technology and Innovation, Rapid Response Monitoring and Ken Kirschenbaum for a round table discussion on current state of monitoring including technology and well as outside influencers like minimum wages and privacy laws. 
Round Table: March 18, 2020 at 1 PM.  Join Mitch Reitman and Ken Kirschenbaum for a round table discussion on Taxes and Corporate issues for alarm companies relevant when selling or buying accounts. 
Round Table:  March 18, 2020 at 2 PM.  Join Ron Davis and Ken Kirschenbaum for a round table discussion on Selling or buying alarm accounts and RMR issues.
Round Table: March 19, 2020 9:15 AM  Join Troy Iverson, VP of Sales, Brian Davis, CFO of AvantGuard Monitoring Centers and Ken Kirschenbaum for a round table discussion on the Current state of the Financial/Capital Market Stability in the Security Industry and necessary agreements needed for security companies. (Titian 2202 Meeting Room just off the show floor)
Round Table: March 19, 2020 at 1 PM.  Join Sharon Elder, VP Sales, USA Central Station and Ken Kirschenbaum for a round table discussion on the value of quality video contracts and services
Round Table:  March 19, 2020 at 3 PM.  Join Bart Didden, Executive Claims Administrator, Security America and Ken Kirschenbaum for a round table discussion on Errors and Omissions Insurance Claims and Risk Management

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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