More on is leasing security or fire alarm systems Part 2 / Webinars and ISC Meeting / Becklar Monitoring Webinar Tomorrow - sign up now March 12, 2025

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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More on is leasing security or fire alarm systems Part 2 / Webinars and ISC Meeting / Becklar Monitoring Webinar Tomorrow - sign up now
March 12, 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 11, 2025 noon ET. WorkHorse: CRM, ERP, and Billing solution built for the Alarm Industry
WorkHorse: https://workhorsescs.com/
Presenters:  Steven Hayes, President and Anthony Sposato, Business Development Manager
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: Discover WorkHorse—the most integrated CRM, ERP, and Billing solution built for the Alarm Industry. Meet our team at ISC West and see how we can streamline your business!
Register Here: https://attendee.gotowebinar.com/register/5698201864401899868
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March 13, 2025 noon ET Becklar Monitoring: professional central station monitoring
Becklar Monitoring: www.becklar.com
Presenters: Troy Iverson SVP Monitoring, Spencer Moore SVP Workforce Safety and Daniel Forrest President of Becklar Video
Hosted by:  Ken Kirschenbaum, Kirschenbaum & Kirschenbaum
Topic: Becklar Monitoring "The Critical Event Monitoring Leader".
Visit us at ISC West at Booth # 25109 and come relax by getting a drink, snack and neck/back massage in our meeting room which is located just off the show floor in Titian Suite meeting room 2202.
Register Here: https://attendee.gotowebinar.com/register/7534119101462459484
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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

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

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

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

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.

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.

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.

April 3. Group Meeting 11am to 12 pm. Buying or selling your security business. Group meeting conducted by Ken Kirschenbaum.
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Comment on is leasing security or fire alarm systems an option from article on May 18, 2022
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Note: This comment, which I appreciate, isso long that I am circulating it in two parts. Here is Part 2. Part 1 was yesterday. Also note that thecommentator uses the terms Service Agreement and is referring to the K&K Standard Forms, All in One agreements, which covers repair service and everything else you do.
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The Service Agreement provides that third-parties (such as competitors) are not authorized to perform work on the installed equipment without Dealer's permission. For that reason, Dealer will likely not give to Subscriber any keys to equipment cabinets or any lockout codes. Some Dealers put decals on the installed equipment stating that it is leased. The writer has seen one successful Dealer put nice warning decals on the Subscriber's business' front door stating: "This premise protected by a leased security system provided by XYZ Alarmco". (A tip of the hat toKen S., of Redding CA, RIP).
          If the Service Agreement's setup/installation charge (for the setup of the Dealer-owned system) is less than an outright sale price would have been, then the Service Charges need to be sufficient to amortize, over a reasonably short period, the shortfall.
          The Service Charges may be collected less frequently than monthly. Semi-annually or annually, in advance, is much better, and with less time spent dealing with receivables. Monthly autopay is a valuable tool, but annually in advance (just like many insurance companies) is likely better.
          When the Service Agreement ends, for whatever reason, Dealer may, as KK forms provide,remove (to prevent reuse by competitors, for example), or abandon, or sell to the Subscriber (at the pre-agreed price stated in the Service Agreement), the equipment/system, at the Dealer's option.
          On the Dealer's financials, all the Dealer-owned equipment (that the Dealer bought for the Subscriber's use pursuant to the Service Agreement, and paid sales tax on)gets expensed when it leaves the Dealer's warehouse and delivered to Subscriber's premises. This means it is a current expense, 100% immediate write-off, no need to carry it on the books as a depreciating asset. Someone smart, like Mitch, can explain how this works. Also, while this writing makes reference to "leased" equipment, this is merely an industry term, andthe arrangement with the Subscriber is not that of lessor/lessee. Again, Mitch can explain the many good reasons not to be in the leasing business... Better to merely provide, at a non-itemized price, use of Company owned equipment.
          The goal for the successful Dealer is to achieve sufficient RMR from their ongoing and new Service Agreements to (eventually) cover their basic company overhead and operating expenses, and to then contribute to operating profits and owner's compensation.
          As KK has commented, Dealer-owned systems (I believed KK refers to them as"leased") are stickier, and more likely to be viable for longer periods of time, and especially so for commercial fire.
          On the other hand, if the Dealer sells their accounts as they are created, through some"authorized dealer program", they do not build equity in their own work, and have nothing to sell when they later retire. While this is good for dealer program operators like ADT/Pro1, Vivint/Apx, SAFE, andBrinks/Monitronics, etc, it is a bad deal for the Dealer, who ends up just"working for wages".
          While the values will fluctuate, there are many buyers of Service Agreements, many of whom are listed in KK exchange. In addition, a Dealer's local area competitors are likely buyers.
          When Dealer retires and sells his/her RMR generating Service Agreements, those forDealer-owned systems (as described here) will have a higher RMR and therefore generate a higher value to the Dealer, compared to, say, Agreements for monitoring Subscriber-owned outright sale systems.
          This business model has been learned from the industry's dominate Dealers (Bruce/Roger, and others who likely read this forum), and should work for and add value to mostevery Dealer, large or small.
          The writer seeks constructive analysis and comments from KK and from others in the trade.As the above will be recognized as the approach by "traditional"dealers, comments from Dealers involved in "non-traditional", or DIY,or affinity marketing, or online sales are especially sought.
          Five more points: (a) for all work, always use the proper liability-limiting agreement forms, like KK's, without exception; (b) carry professional liability insurance, including E&O coverage (it's not that expensive) because GL& PD insurance is insufficient for dealers which provide RMR services; (c)have your business properly licensed for the work it performs (different licenses for burglar vs fire; company license plus personal license may be required, for example); (d) conduct business as an S-corp (or perhaps an LLC;ask Mitch about this) to reduce personal liability exposure and to avoid double taxation when the accounts/agreements are sold upon Dealer's retirement; (e)own your alarm receiver's Toll Free phone numbers (instead of using ones offered by third-party monitoring stations).
          Service Agreements, when sold, are appreciated assets, without tax basis, thus subject to capital gains tax (way better than ordinary income tax). The writer has seen other Dealers' owners (sorry Dan and Todd) get whacked with double taxes (once at Corp level, then again at personal level) when they sold their RMR accounts because they operated their business as C-corps. KK or Mitch can add comment about this.
          Long read;looking for readers' further analysis and comments.
ANON in AlarmLand
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Response

          Lot to take in. Please submit your comments or be sure to schedule a meeting at ISC to discuss your concerns
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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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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