KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Benefits of S Corp / webinars / ISC meetings / sign up for this weeks webinars: Mitch Reitman, Fieldhub, Microkey, Actuate
March 17, 2025
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Webinars: All webinars will be recorded and available on the K&K website at https://www.kirschenbaumesq.com/page/alarm-webinars and are available on Podcasts at https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477
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March 18, 2025 noon Mitch Reitman. Accounting and tax issues
Mitch Reitman, Reitman Consulting MReitman@Reitman.US 817-698-9999 ext.101 http://WWW.Reitman.US
Presenter: Mitch Reitman
Hosted by: Ken Kirschenbaum
Topic: Sales Tax and Entity Selection for Security, Fire, and Integration Companies.
Did you know that many states have special rules regarding sales tax for burglar and fire alarm monitoring service? Don’t feel bad, neither do most accountants. States may also have special provisions for commercial install, service, inspections, residential install, interactive service, cellular units, and a host of other services. One thing that is consistent, and for certain, is that if your company doesn’t treat a sales tax situation the proper way, the State will most certainly expect your company, not your customers, to pay the tax.
Mitch Reitman will discuss sales tax and the alarm and integration industry. You will learn the difference between tax code, interpretations by taxing authorities, case law, and technical rulings. Sales tax audits are much more common then IRS Audits. Even if you have gotten some bad advice, being in compliance when the auditor walks in the door can save you a lot of grief.
Hopefully you have chosen the correct entity (Corporation, LLC, Limited Partnership, etc…) for legal protection for your company. Did you know that the IRS looks at each entity differently. Did you also know that it is possible to be taxed as a different entity in some situations, and that this can lessen your chances of an audit? Mitch will give you some insight into proper entity selection for tax purposes based upon your mix of business.
Register Here: https://attendee.gotowebinar.com/register/6702706891533205338
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March 19, 2025 noon ET Fieldhub: software for security and fire alarm integrators
FieldHub: www.fieldhub.com
Presenter: Miles Fawcett, CEO of FieldHub
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: Learn all about Fieldhub’s all-in-one software built specifically for security and fire installers and integrators. FieldHub handles a huge range of key functions, including accounting, RMR billing and invoicing, as well as being a very strong CRM and dispatching platform, among other things! Sign up for the webinar and come meet the FieldHub team at booth #31087 at ISC West.
Register Here: https://attendee.gotowebinar.com/register/7273615110028492128
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March 20, 2025 noon ET Microkey: software solutions for alarm dealers
Microkey: www.microkey.com
Presenter: Victoria Ferro, President of Micro Key Solutions.
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: Micro Key Solutions: Your Key to Profitability & Performance. 40 Years of Innovation – Built for Alarm Dealers Like You. "The Industry is Changing – Are You Ready?" Meet us at ISC West Booth 35056.
Register Here: https://attendee.gotowebinar.com/register/6639386016801826908
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March 21, 2025 noon ET Actuate: remote video monitoring
Actuate: www.actuate.ai
Presenter: Brian Karas - Brian.karas@actuate.ai
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: Actuate AI. How to drive growth and efficiency in your remote video monitoring portfolio by reducing spam events and adding new video monitoring options. Actuate will be in the AI Discovery Zone at ISC West and is hosting exclusive events for monitoring stations and dealers in the video monitoring business. Contact Brian Karas direct at 603-315-7877 or Brian.karas@actuate.ai
Register Here: https://attendee.gotowebinar.com/register/5007385305740522592
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March 24, 2025 noon ET NMC: professional monitoring center
National Monitoring Center: www.nmccentral.com
Presenters: Tatiana Abramek, Senior Sales Executive with special guest Nicola Oakie, Vice President of Sales, Netwatch North America
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: Learn about National Monitoring Center’s leading proprietary technology to bring innovative solutions. Contact Tatiana Abramek, Senior Sales Executive, NMC, at 949-877-226 or tabramek@nmccentral.com and Nicola Oakie, Vice President of Sales, Netwatch North America
at 702-816-1974 or noakie@netwatchusa.com
Register Here: https://attendee.gotowebinar.com/register/4188331606419621213
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March 25, 2025 noon ET Security Central: professional monitoring center
Security Central: www.security-central.com
Presenter: TBD
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: Learn about Security Central’s cs operation and why you should have your accounts with us
Register Here: https://attendee.gotowebinar.com/register/3887630569385895772
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March 27, 2025 noon ET Dynamark: professional monitoring center
Dynamark: www.dynamarkmonitoring.com
Presenter: Trey Alter, CEO. talter@dynamarkmonitoring.com 301-745-1602
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: The Future of Monitoring: Evolution or Revolution: A look into the changing dynamics of monitoring centers including size, service offerings, technology, and pricing. Also, a special section on how technology is changing the way monitoring centers, dealers, and their customers communicate with one another. Find out how Dynamark has evolved and the investments it is making for the future. Dynamark is hosting dinners in Las Vegas instead of a booth and to participate or arrange visit to either of Dynamark’s monitoring centers contact Trey Alter at 301 745 1602 or talter@dynamarkmonitoring.com.
Register Here: https://attendee.gotowebinar.com/register/4864481779478912605
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Private and Group FREE meeting - schedule now available
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Schedule a free private meeting while at ISC. Meetings will be at the Prestige Lounge at the Palazzo. Time is limited so book now. Contact Kathleen Lampert at 516 747 6700 x 319; for last minute booking or to change appointment while at ISC contact Stacy Spector at 516 987 8428.
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Private Meetings with Ken Kirschenbaum, Esq.
Discuss contracts, buying and selling, legal and business issues, disputes, or just come and meet Ken in an informal setting.
Contact Kathleen Lampert at 516 747 6700 x 319 to schedule your free appointment
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Private Meetings with Rory Russell of AFS:
Schedule a private meeting with Rory Russell of Acquisition and Funding Services (AFS) to discuss buying or selling security, fire and integration business. Contact Kathleen Lampert at 516 747 6700 x 319 to arrange a meeting. You can contact Rory direct at 518-366-5111. At ISC you can also contact Stacy Spector to schedule last minute appointment or change an appointment with Rory. Call Stacy Spector at 516 987 8428.
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Private Meetings with Mitch Reitman, President of Reitman Consulting Group Inc. Discuss accounting, tax, due diligence, valuation issues. Contact Kathleen Lampert at 516 747 6700 x 319 to schedule your free appointment. At ISC you can also contact Stacy Spector to schedule last minute appointment or change an appointment with Mitch. Call Stacy Spector at 516 987 8428. You can reach Mitch at MReitman@Reitman.US or 817-698-9999 ext.101 http://WWW.Reitman.US
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Group Meetings: See schedule below. Space limited. Reserve your spot by calling Kathleen Lampert at 516 747 6700 x 319 or Stacy Spector at 516 987 8428.
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April 1. Group Meeting: 11:00 am to 12:00 pm - Selling and buying alarm accounts; Things to know. Group Meeting conducted by Ken Kirschenbaum.
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April 1. Group Meeting: 2:00 pm to 3:00 pm – State sales tax and complex company valuation. Group meeting conducted by Mitch Reitman of Reitman Consulting Group
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April 2. Group Meeting: 10:00 am to 11:00 am - "Selecting the best insurance carrier and what is trending with claims"
Learn for yourself the differences of various insurance carriers. Understand why some are better than others. We will discuss what is trending with claims in the security industry and tips to limit your liability when an incident arises. Group meeting conducted by Shawn Iverson of The Insurance Center. You can also meet Shawn at The Insuarance Center booth.
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April 2. Group Meeting: 11:00 am to 12:00 pm – Contracts – which ones you need and why you need them. Group meeting conducted by Ken Kirschenbaum.
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April 3. Group Meeting 11am to 12 pm. Buying or selling your security business. Group meeting conducted by Ken Kirschenbaum
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Benefits of S Corp
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Ken
A question for Mitch Reitman: What are the benefits of an S corporation over a single-owner LLC for the sales of alarm company assets (1 owner, 1,800 accounts), not for the tax savings during the years of operation?
Withhold name please
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Response
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Mitch is a big fan of S Corp, as am I. I know Mitch will touch on this in his webinar, which is on for Tuesday, March 18 at noon ET. Don’t miss this informative webinar. But if you do, you still have a chance to meet the most famous accountant/tax professional in the alarm industry at a Group meeting at ISC on April 1, or at a private meeting during ISC – sign up above for either, or both.
Here is Mitch’s response:
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Ken,
I run into this very often, and it is because attorneys, and even some accountants, confuse the legal aspects of an entity with the tax aspects.
When the IRS re-wrote the tax code in 1986 LLCs, and LLPs didn’t exist. As states started passing legislation allowing them, they became popular but Congress never amended to Tax Code to address them. This is why you will hear them referred to as Disregarded Entities. This doesn’t mean much more than that the IRS considers them to be something else. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return. Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it elects to be treated as a corporation. For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner (for tax purposes), unless it elects to be treated as a corporation. If that isn’t confusing enough, consider that the owners of a partnership or a sole proprietor cannot be paid wages but are compensated, and pay Self Employment Tax, on their share of the entity’s income. If either entity elects to be taxed as an S Corporation the owner(s) can take a Reasonable Salary, withhold Social Security and Medicare on that salary, and take the rest of their compensation free of employment taxes. This isn’t a choice, it’s in the IRS Code (even though LLCs aren’t). LLCs that are taxed as partnerships have some additional issues with owners being able to participate in certain retirement plans, but they do have some advantages in that an LLC with multiple members can make disproportionate distributions while one taxed as an S Corporation cannot. Yes, it’s complicated and there are consequences for doing it wrong.
If your LLC has a single member, and you don’t elect to be taxed as a corporation, then the IRS requires the LLC’s income to be reported on the member’s personal tax return (Schedule C). There are numerous issues with this, the most important being that most schedule C filers are independent contractors, owners of extremely small businesses, “gig” workers, real estate salespeople, Mary Kay Consultants, and a huge hodgepodge of insignificant business, many with sloppy books. Not only are these “businesses” ripe for audits, since the Schedule C is a part of the owner’s personal tax return, the Revenue Agent now also has their personal return. This usually leads to what we call a “fishing expedition” in which the Agent digs deep into the return. Trust me, this is never good, even if the Agent finds nothing. If the IRS audits a corporate return, the Agent has to have a compelling reason to obtain the owner’s personal return. This rarely happens. Another issue is that legitimate business that file on Schedule Cs tend to attract audits. Your alarm company with four work trucks and vehicle expense of $50,000 a year could get confused for a “gig worker’s” Maserati and the Agent doesn't know the difference until they look at the return… during an audit.
In addition to all of the above there are questions such as the ability to take advantage of certain retirement plans, the Qualified Business Income Deduction, the treatment of intangible assets such as monitoring accounts that can’t be covered in a one size fits all email. Your client’s accountant should be able to assess his situation and give him sound advice. If not he should reach out to us. We know what alarm companies and systems integrators do.
Mitch Reitman
Reitman Consulting
817 698 9999 ext 101
www.Reitman.us
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STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com
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CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars
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ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily
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Wondering how much your alarm company is worth?
Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth
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THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily
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PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477
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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
www.KirschenbaumEsq.com
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