Levi S. Hatch — Attorney at Carr Law Firm
Business Law, Tax Planning, Asset Protection and Bankruptcy
Levi S. Hatch is an attorney at Carr Law Firm who advises individuals and business owners on legal, tax-planning, estate-planning, and asset-protection matters. His practice includes business entity formation and organization, tax elections, partnership agreements, trusts, business contracts, bankruptcy representation, and representation before the Internal Revenue Service (IRS) and state tax authorities.
Mr. Hatch works with clients to understand their objectives, evaluate relevant legal and financial considerations, and develop plans tailored to their circumstances. His approach brings together business organization, tax planning, contractual arrangements, and other legal considerations that can affect how individuals and businesses operate, manage assets, and plan for the future.
For business owners, these decisions can influence management responsibilities, ownership rights, tax treatment, contractual obligations, and the allocation of risk. For individuals and families, estate planning and asset protection may involve questions about property ownership, succession, trusts, and the legal arrangements governing assets. The appropriate strategy depends on the client's goals, financial circumstances, and applicable law.
Business Entity Formation and Organization
Selecting and organizing a business entity involves more than registering a company. The structure can affect ownership, management authority, liability, tax treatment, reporting obligations, and the procedures for making business decisions.
Mr. Hatch advises individuals and business owners on corporate formations and limited liability company (LLC) organization. Depending on the circumstances, entity-planning work may involve evaluating available structures, preparing organizational documents, establishing ownership arrangements, and identifying relevant legal and tax considerations.
Corporations and Limited Liability Companies
Corporations and LLCs are distinct legal structures with different statutory requirements, governance arrangements, and potential tax treatments. Choosing an appropriate structure requires consideration of the business's activities, number and type of owners, management preferences, anticipated growth, and other circumstances.
Entity organization may involve formation filings, governing documents, ownership records, management provisions, and other steps required or appropriate for the selected structure. Maintaining the entity's records and observing applicable legal requirements are also important considerations.
Although corporations and LLCs may provide liability protections, those protections are not absolute. Their scope depends on applicable law and the circumstances involved, and entity formation alone does not eliminate every form of personal liability.
Tax Elections and Business Tax Planning
The legal form of a business and its federal tax classification are related but separate considerations. Depending on the entity and its eligibility, certain tax elections may be available to determine how the business is treated for federal income tax purposes.
Tax-planning considerations may include the distinction between an entity's legal structure and its tax classification, the potential tax consequences for owners, applicable filing requirements, and the administrative responsibilities associated with a particular election.
Evaluating these issues before making an election can help business owners understand the applicable requirements and potential consequences. The appropriate approach depends on the entity's structure, ownership, activities, and financial circumstances.
Partnership Agreements and Business Contracts
Written agreements help establish the rights, responsibilities, and expectations of the parties involved in a business relationship. Clear contractual terms can address ownership, management, financial contributions, compensation, decision-making authority, and procedures for resolving disagreements.
Partnership and Ownership Agreements
Partnership agreements and other ownership documents can address how a business is managed, how profits and losses are allocated, how decisions are made, and what happens when an owner wishes to leave or a new owner joins.
Depending on the business structure and the parties' objectives, these agreements may also address capital contributions, transfer restrictions, voting rights, dispute resolution, and procedures for winding up the business.
Careful drafting requires attention to the governing law, the selected entity structure, the owners' intentions, and the relationship between the agreement and the entity's other organizational documents.
Business Contracts
Business contracts establish enforceable terms for commercial relationships and transactions when the applicable legal requirements are satisfied. Depending on the business's needs, contractual matters may involve services, operations, payment obligations, responsibilities, performance requirements, or other commercial arrangements.
Reviewing and preparing contracts can involve identifying the parties' obligations, clarifying important terms, allocating contractual risks, and addressing what happens if an agreement is breached or circumstances change.
The purpose of effective contract planning is to establish terms that reflect the parties' intentions while accounting for relevant legal requirements and practical business considerations.
Estate Planning and Asset Protection
Estate planning and asset protection involve related but distinct legal considerations. Estate planning addresses how property and other interests may be managed during a person's lifetime and transferred following death. Asset protection planning examines lawful ways to structure ownership and manage exposure to certain risks, subject to applicable legal limitations.
Mr. Hatch's practice includes integrated planning intended to address clients' business, tax, estate-planning, and asset-protection needs. Depending on the circumstances, this work may involve coordinating entity structures, ownership arrangements, contractual provisions, and estate-planning documents.
Trusts and Estate-Planning Structures
Trusts can serve different purposes depending on their terms, the assets involved, the identity and responsibilities of the trustee, and the objectives of the person establishing the trust. Depending on the arrangement, a trust may address property management, the timing and conditions of distributions, or the transfer of assets to beneficiaries.
Estate-planning decisions may also involve considering how business interests and other property fit within a broader plan for ownership, management, and succession.
The legal, tax, and administrative consequences of a trust depend on its structure and the applicable law. Establishing a trust does not automatically eliminate taxes, prevent every creditor claim, or guarantee that assets will avoid probate.
Asset Protection Considerations
Business owners and individuals may need to consider how their assets are titled, which entities own particular property, and how contractual and financial obligations affect their exposure to potential claims.
Lawful planning may involve evaluating entity structures, ownership arrangements, applicable liability protections, and other legal mechanisms relevant to the client's circumstances.
Asset protection is subject to important limitations. Fraudulent-transfer and voidable-transaction laws, existing creditor rights, personal guarantees, statutory exceptions, and other legal rules may affect whether a particular arrangement is effective. Transferring assets does not necessarily protect them from existing or anticipated claims, and planning must comply with applicable law.
Tax Representation Before the IRS and State Tax Authorities
In addition to business and tax planning, Mr. Hatch represents taxpayers before the IRS and state tax authorities. Tax matters can involve disputed assessments, questions about filing obligations, outstanding balances, administrative procedures, and collection activity.
The appropriate response depends on the type of tax involved, the relevant tax periods, the taxpayer's records and circumstances, the notices received, and applicable deadlines.
Tax Disputes and Administrative Proceedings
When a taxpayer disagrees with a tax determination or faces an unresolved tax issue, available procedures may provide opportunities to present relevant information, challenge certain determinations, or pursue an appropriate resolution.
Depending on the matter, representation may involve reviewing tax records and agency correspondence, evaluating the basis of a liability, identifying applicable procedural rights, and determining which administrative options may be available.
Tax Collection and Resolution
Outstanding tax liabilities can lead to collection efforts and additional legal or financial consequences. Depending on the circumstances, taxpayers may be able to consider payment arrangements or other available resolution mechanisms under the applicable rules.
Evaluating these options requires attention to the amount and nature of the liability, the taxpayer's financial circumstances, compliance requirements, and the procedures governing the collection matter. Eligibility and outcomes vary, and no particular resolution should be assumed available without an appropriate review.
Chapter 7 and Chapter 13 Bankruptcy Representation
Mr. Hatch represents debtors in Chapter 7 and Chapter 13 bankruptcy cases under the United States Bankruptcy Code. Bankruptcy proceedings involve federal statutory requirements, financial disclosures, creditor rights, court procedures, and legal consequences that depend on the debtor's circumstances.
Individuals considering bankruptcy may need to evaluate their income, assets, secured and unsecured debts, collection activity, and eligibility for available forms of relief. Understanding the differences between bankruptcy chapters is an important part of assessing potential options.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a liquidation proceeding that may allow eligible debtors to obtain a discharge of qualifying debts. The process can involve the review of assets and liabilities, applicable exemptions, financial disclosures, and the administration of the bankruptcy estate by a trustee.
Not every debt is dischargeable, and not every asset is necessarily protected. Eligibility, exemptions, potential asset administration, and the treatment of individual debts depend on the applicable law and the facts of the case.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy provides a court-supervised reorganization process for eligible individuals who have qualifying regular income and satisfy the applicable statutory requirements. The process generally involves proposing a repayment plan addressing debts over a specified period, subject to court approval and the requirements of the Bankruptcy Code.
Depending on the circumstances, Chapter 13 may provide a framework for addressing certain secured debts, arrears, and other eligible obligations through a repayment plan. Its availability and potential benefits depend on the debtor's financial situation, statutory eligibility, plan terms, and applicable legal requirements.
Evaluating Bankruptcy Options
Chapter 7 and Chapter 13 serve different purposes and can produce different legal and financial consequences. Evaluating the options may require examining income, property, creditor claims, repayment capacity, and the treatment of particular debts.
Tax liabilities may introduce additional considerations. Some tax debts may qualify for discharge under specific circumstances, while others may remain payable. Tax liens, the nature of the liability, filing history, assessment dates, and other legal requirements can affect the analysis.
A case-specific evaluation is necessary to understand the available options, applicable limitations, and potential consequences before making a decision about bankruptcy.
Integrated Legal Planning for Individuals and Business Owners
Business organization, tax planning, estate planning, asset protection, and debt-related legal matters can intersect. A decision involving one area may affect ownership arrangements, tax obligations, contractual responsibilities, or the treatment of assets in another.
For example, choosing a business entity may require consideration of governance documents and tax classification. Planning for the transfer of a business interest may involve ownership agreements and estate-planning arrangements. A business owner facing financial difficulties may need to understand how existing contracts, tax obligations, and creditor claims interact.
Mr. Hatch works with clients to understand their specific objectives and develop legal plans that address the relevant issues. Depending on the matter, this may involve preparing entity documents, structuring ownership arrangements, evaluating tax elections, drafting agreements, establishing trusts, or representing a client in tax or bankruptcy proceedings.
Each plan must be evaluated in light of the client's circumstances and the law governing the particular issue. No single structure or legal strategy is appropriate for every individual or business.
Education and Professional Admissions
Levi S. Hatch is an Arizona native. He earned his degree in Economics from Brigham Young University and his Juris Doctor (J.D.) from the Arizona State University Sandra Day O'Connor College of Law.
His education in economics and law provides an academic foundation relevant to understanding business organization, financial decision-making, legal obligations, and the statutory frameworks governing his practice areas.
Mr. Hatch is admitted to practice before the Arizona Supreme Court, the United States District Court for the District of Arizona, and the United States Tax Court. His professional admissions support his work within the scope of the applicable court rules and jurisdictional requirements.
Personal Background and Community Involvement
Outside his legal practice, Mr. Hatch enjoys spending time outdoors and volunteering for his church. He and his wife are the parents of four children.
As an Arizona native, Mr. Hatch brings his educational and professional background to his work with individuals and business owners addressing legal, tax-planning, and financial challenges.
Contact Carr Law Firm
Individuals and business owners facing tax disputes, business-organization decisions, estate-planning questions, asset-protection concerns, or bankruptcy-related challenges may benefit from understanding their legal options before deciding how to proceed.
Carr Law Firm represents clients in tax, business-planning, and bankruptcy matters. Contact the firm to discuss your circumstances, determine whether the firm's services are appropriate for your needs, and evaluate potential next steps.