DePaul Spotlight on Dr. Patrick J Murphy

Posted on May 24, 2013 by Chicago Family Business Council

Chicago Family Business Council: Could you tell us a little bit about your programs and responsibilities?
Dr. Patrick J. Murphy: Last year I founded the Social Enterprise Collaborative (dpusocent.org), which is a donor-funded operation at DePaul that connects our students who are interested in becoming social entrepreneurs (or working for a social venture) with social entrepreneurs in Chicago. We’ve grown very quickly and have had three events. The last one had 175 attendees, all of whom were DePaul students, faculty, or Chicago social entrepreneurs. Additionally, since early 2012 I have been leading the university’s strategic expansion into China, where we have recently established a university-level relationship with Huaqiao University (http://offices.depaul.edu/president/multimedia-gallery/2013/Pages/huaqiao-univ-visit.aspx).

CFBC: Tell us why you chose to come to DePaul
PJM: I interviewed at 10-12 schools around the world once I completed my PhD, and I think I had 5 offers, including one at a European school and one in Singapore. DePaul gave me the best offer and I was most impressed by the students and faculty here. I did my graduate work right across town (UIC), but geography had little to do with it. I wanted to go to a place where I’d have the freedom to envision and build things and make an impact.

CFBC: What was your first impression of DePaul?
PJM: At first blush, the faculty seemed so senior and experienced. I soon realized that many of them had been here a long time, which spoke volumes to me about what a nice place it’d be to spend my own career. People love it here so they don’t leave. Eventually, I came to realize that we truly are the university OF Chicago. No other university has such deep connections to the culture and the social fabric of our city.

CFBC: What has been the most rewarding aspect of your work with DePaul, and why?
PJM: There have been several such aspects. I have a passion for Social Entrepreneurship, so launching the Social Enterprise Collaborative and seeing it take root has been very satisfying. As well, I was a foreign student in China in college and I speak Chinese, so being given the responsibility of taking DePaul into China and seeing our first-ever formal university-level relationship with a proper Chinese university has been amazing. Finally, I’ve been here long enough now (10 years) to see a lot of my students become entrepreneurs. I’ve kept in touch with many of them, and they can come back and share their knowledge and experience with my current students. I advise a lot of them as they undertake their ventures. It’s all so rewarding because I feel a personal tie to all of these aspects of my work.

CFBC: What has been your greatest lesson you’ve learned through your work at DePaul?
PJM: Theory without practice is pointless, and practice without theory is blind. This mantra is my pedagogical credo. Every entrepreneurship class I teach involves outreach to the community and so does the Social Enterprise Collaborative. However, entering those practical contexts is no reason to lose a rigorous theoretic approach to complex problems. A strong and smart theoretical approach is the only way to separate noise from data and solve problems when common sense doesn’t work. Applying concepts to reality is a big strength of our business school. I regard it as pedagogically far more rigorous than reading and critiquing business cases in a classroom.

CFBC: What do you wish CFBC members knew about your work, and why?
PJM: I wrote a book with my colleague Ray Coye that mines old logbooks and journals from seafaring ventures 500 years ago in the Age of Discovery (http://amzn.com/0300170289). The book is called Mutiny and Its Bounty: Leadership Lessons from the Age of Discovery (Yale U. Press, 2013). In short, mutineers in those days were far more sophisticated than those who might wish to remove their leader today. Much can be learned from them. And the first-person primary source accounts offer amazing qualitative data.

CFBC: How could you serve as a resource for the CFBC members, and how could they serve as a resource for you?
PJM: Let’s connect and undertake some outreach consulting projects involving a student team. Probably 25% of the ventures (more than 100 since I’ve been here) that I’ve consulted to with student teams are family businesses. If your family business has a social purpose embedded into its operations or wishes to move in that direction, please tune into the Social Enterprise Collaborative or contact me to work with a student team. Please also attend the Social Enterprise Collaborative events (more info at the website). Our next big one isn’t until autumn but they’re free admission and have been very successful.

CFBC: Tell me about someone who has influenced your decision to do the work you do?
PJM: It’s hard to identify just one. My Dad is a retired railroad executive and he compelled me, by how he approached his work, to do only what I love to do and not to compromise on that principle. His Dad was the mayor of Whitefish, MT. I did not know my grandfather really well because we moved a lot but I can tell he influenced my Dad in the same way. I also had an advisor in college, whom I still keep in touch with, who reinforced the notion that it’s easy to good work without loving one’s job, but it’s impossible to do excellent work. So if I don’t love something, then I try to learn to love it or I don’t do it unless I have to. I didn’t expect to be a career academic until I was more than halfway through my doctoral studies; I was following my path in academia because I had a passion for scholarly work. In fact, I worked at a large company (Schneider Electric’s North American Headquarters in Palatine) for two years before I knew that I did not love working in a large company and understood that my passion for academia was too intense to ignore. I had to be a professor or an entrepreneur. By the way, there are a lot of commonalities between those two careers.

CFBC: What would you tell our members who are thinking about working with DePaul?
PJM: We’re a very friendly place. Reach out to anyone here directly.

CFBC: What do you do when you aren’t working?
PJM: Play guitar. I used to run in all types of weather but now I only run outside when the weather is warm, and travel a lot.

CFBC: What one book would you recommend to our members?
PJM: Mutiny and Its Bounty: Leadership Lessons from the Age of Discovery. Aside from my own book, of course, then I’d recommend Conjectures and Refutations by Karl Popper. My greatest intellectual and scholarly influence came from Popper.

CFBC: What in your early work life had an impact on you or motivated you?
PJM: I love to publish my work. Scholarly articles are powerful in a very subtle way. For example, they influence the way courses are taught and how books are written, which influences how students eventually conduct business. If you publish a good scholarly article, other scholars around the world will cite it and use in their business schools for many years. Once I made that linkage, I acquired a creative spark that still drives me now and will always drive me.

CFBC: How does your department celebrate successes? And can we be invited?
PJM: We usually send a group email blast. We also give high fives in the hallways. Not much actually – I think everyone’s too busy working to take time to do things like that. Maybe the CFBC can help us with that (?)

CFBC: What are your plans for the future?
PJM: I plan to earn promotion to full professor and then to develop the Social Enterprise Collaborative into a world-class Center for Social Enterprise at DePaul University. I’d like it to have an international component, as per the China project I noted above – so much of social enterprise activity is international by nature, and a clear international element would be a phenomenal way to engage our international students and increase DePaul’s impact in Chicago and beyond. DePaul is going through a period of internationalization right now. We must effectively engage students and partners across all kinds of boundaries and do it in a way that doesn’t clash with our culture, but reinforces our culture and our impressive strengths.


Posted in DePaul Spotlight | Tagged , , , , , |

The 5 Most Common Mistakes Made with Small Business Health Insurance

Posted on May 7, 2013 by Chicago Family Business Council

One of the major points of pain for smaller businesses is their group health insurance plan.  Day after day business owners or their administrators are forced to deal with employee issues and administrative problems that could easily be avoided.  GCG Financial has a long history of working with and being referred by our small to mid-sized business clients and we have compiled this list of the five most common mistakes that are made while administering health insurance plans.

1.  Not Understanding Eligibility Requirements

Having a group health insurance plan for your business does NOT automatically mean every employee is eligible.  The state you are in, the insurance company you are with, and sometimes your own policy, can all dictate the number of hours an employee must work to be considered eligible for coverage.  Typically, employees are expected to work thirty hours each week, and then they must satisfy the waiting period before they are eligible to participate in the health insurance plan.

Before promising an employee the opportunity to be covered by the health insurance plan a group administrator should be absolutely sure that the employee will work the hours necessary to allow their participation.

SITUATION TO AVOID – Imagine an employee who is only working twenty hours each week has been told that they will have health insurance coverage.  The employee fills out paperwork and assumes that the coverage is in force.  Then the employee has an expensive treatment done at a hospital, only to find out that the administrator was mistaken that part time employees are NOT eligible for coverage.   A complete understanding of the eligibility requirements can help to avoid any problems.

2.  Understanding and Communicating the Waiting Period

Oftentimes the administrator of the small group health insurance plan will not remember or know the waiting period – which inevitably will lead to mistakes and problems.  The waiting period is the number of consecutive days an employee must work in order to meet the definition of eligibility before they can be added to the health insurance plan.  The waiting period is set on the insurance carrier paperwork that establishes the health insurance program.  The group is free to choose almost any waiting period that it deems appropriate for its unique circumstances.   The key to avoiding waiting period problems is to make certain that the newly hired employee knows exactly how long they have to work before they can be enrolled in the health insurance.

HELPFUL HINT – Make sure that your waiting period coincides with how long it typically takes to know if an employee is going to stick.  If your waiting period is too short, then you may enroll and have to administer COBRA/State Continuation for folks who end up not working for your company.  Conversely, if your waiting period is too long you may have trouble attracting quality employees who have pressing health insurance needs.

 

3.  Incomplete or Untimely Paperwork

Administering a small group health insurance plan is often more work than it seems.  One of the most daunting elements of good administration is the timely submission of paperwork.  Paperwork is necessary when employees are added, terminated, or making changes to coverage.

Two common issues with paperwork are:

1)     Employees not completely filling out the paperwork and signing it.  It is very important to communicate to employees that they must include all of their information on the application in order for the application to be data entered properly and to prevent any complications with the applications being processed. Group administrators must make sure they are completely up to date on the insurance carrier paperwork.

2)     Employee paperwork needs to be submitted in a timely manner.  It is a safe bet that all paperwork should be in no later than the effective date of the change.  Most carriers allow some type of grace period for the submission of paperwork but that is not a guarantee.  That being said, it is good practice to submit paperwork IMMEDIATELY – The earlier the better.

PAPERWORK ALERT – When it comes to COBRA or State Continuation of benefits, eligibility information must be sent out WITHIN 14 DAYS OF THE EMPLOYEE’S TERMINATION DATE.

 

4.  Failure to Reconcile Carrier Bills

Insurance companies don’t always get it right.  The problem is that when they get it wrong the employer sponsoring the plan is left to deal with the consequences.  If employees are left on the bill beyond termination, then the practice is still paying a premium for employees who are no longer there.  If the employee never appears on the bill, then odds are that the employee does not have coverage in force.   If a claim is filed, problems will ensue.  Reconciling your carrier bill is the quickest and easiest way to make sure an employee has been properly removed or added to your bill.

Review your bill each and every month to ensure all covered individuals are listed on the bill and all terminations have been removed from the bill.  Don’t make the assumption that the insurance company has done everything correctly.

KEY TO SUCCESS – Inspect what you expect!

 

 

 

5.  Waiting too Long to Seek Assistance

Insurance companies are certainly not perfect when it comes to claims adjudication.  People in general can be very emotional when it comes to their health and their access to health care.  The mixture of these two things – mistakes and emotions – can lead to some very volatile situations.

Every time an insured person accesses health care and files a claim with the insurance company, an “Explanation of Benefits” (EOB) document is generated by the insurance company and sent to the insured.  The EOB lists the date of service, the cost, the negotiated discount, the deductible accounting, and the amount (if any) that the patient is responsible for.  When the health insurance machine is working properly, the EOB will match any bills sent by the doctor or hospital.

If an insured patient is receiving bills that do not match the EOB sent from the insurance company, it is important to take action IMMEDIATELY.  Oftentimes the error is easily correctable.  When the employee does not reconcile the bills with the EOB’s and disregards bills and collection notices, the situation is exasperated.  It is critically important for employees to understand their coverage and manage their own health care bills.  The insurance company and the broker responsible for the plan will always offer assistance if the situation gets out of hand, but it is best to not let it get that far.

BEST PRACTICE – Discrepancies regarding the application of benefits MUST BE BROUGHT TO THE ATTENTION OF THE INSURANCE CARRIER WITHIN 90 DAYS.

The good news is that all five of these mistakes can be avoided by refreshing your knowledge and understanding of some basic requirements and deadlines.  Taking a more proactive approach to carrier bills, claims, and provider bills will also help to reduce the problematic issues that arise from your group health insurance.  It is also a good idea to provide employee education – outside of open enrollment – to improve the employees’ understanding of their coverage and the steps they can take to reduce problem.

 For assistance with your group health insurance please contact

The Newman Team @ GCG Financial

Phone:  847-457-3058

Visit us online at www.chicagohealthinsurance.com

Posted in GCG Financial, News |

Member Spotlight on Bryan Doherty of Erin Rope

Posted on May 6, 2013 by christina

Chicago Family Business Council: What year was your company founded?
Bryan Doherty: Erin Rope was founded in 1998

CFBC: Tell us a little bit of the history behind the company?
BD: Erin Rope was founded by my father James Doherty (also a CFBC member) in 1998 after working in the rope industry for 25 years. The initial plan was to be an importer and distributor of ropes in United States market with no intentions of manufacturing. However after a few years in business he began buying equipment and manufacturing specialty ropes for the US market. Today our business is about 50% import and 50% manufacturing.

CFBC: What family members work with you in the business (if any)?
BD: Currently there are three family members that work in the business. Both of my parents and I all work at Erin Rope.

CFBC: How did you hear about the CFBC and what motivated you to join?
BD: I first learned about the CFBC through my father who was already in the CFBC. Before I started working at Erin Rope I knew very little about CFBC or his forum group. However after I started working for Erin Rope I was approached by my father about meeting with a group of a few other young individuals that were involved in a family business. The others in the group worked for other companies within his forum group. After a few meetings together we were approached about joining the CFBC as part of our own forum group. The few meetings that our pre-forum group had together were a breath of fresh air. Motivating me to join was the opportunity I saw to meet with other young professional individuals that would understand the types of responsibilities and problems one might stumble upon both in daily business and personal life that others might not understand or care to talk about.

CFBC: How has CFBC helped your company succeed?
BD: Since joining the CFBC I have seen areas in which meeting with my forum group has been helpful with improving the ways in which I help manage the business. However that being said our forum group is less than one year old and will only continue to help in the future.

CFBC: What has been the most rewarding aspect of your experience with your forum and the CFBC?
BD: The most rewarding aspect of forum for me is the relationships that have been built with the individuals in my forum. These relationships are why I look forward to going to each forum meeting.

CFBC: Is there one thing you have learned from being a member of CFBC that has impacted your business or your life the most?
BD: I feel that time will answer this question. After such a short time together I believe that the biggest impact on my life business or personal has yet to happen.

CFBC: What do you enjoy doing in your free time?
BD: In my free time I like to attend sporting events, go boating in the summer time, and spending time with family and friends.

CFBC: What one book would you recommend to your fellow CFBC members?
BD: Customer Love by Mac Anderson

CFBC: Name one person who had the biggest impact on you as a leader?
BD: My father.

CFBC: What was your first job?
BD: My first job was a small lawn mowing business I started with my neighbor when I was in grade school. We went door to door to any house within walking distance of our houses to ask for their business.

CFBC: Do you have a favorite song?
BD: The Doobie Brothers – Black Water

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DePaul Spotlight on Scott Kelley and Jim Montgomery

Posted on April 25, 2013 by christina

Chicago Family Business Council: Tell us a little bit about your organization?
Jim Montgomery & Scott Kelley: We are the co-chairs of the SITF (Sustainability Initiatives Task Force). We started in 2009 as an ad hoc group of faculty and staff. We brought this group together to figure out what was happening at DePaul with regard to sustainability. DePaul had just received a poor ranking from the Sierra Club Cool Schools survey, and we felt this was inaccurate and unfair. At our first meeting, we had a turnout of about 40 faculty and staff members. We quickly realized that as an ad hoc group we could only do so much, and go so far. We decided we wanted to be a University Committee so that we could do more.

Father Holtschneider agreed to give us a charge for 2 years. The charge was limited in scope, tasking us to audit our current sustainability activity and make new recommendations. We borrowed the acronym CORE (Curriculum Operations Research and Engagement) from the campus sustainability efforts done at the University of New Hampshire. The sustainability audit instruments at this time focused primarily on operations and did not measure curriculum or community involvement.

Around 2009/2010, we joined a group called AASHE (Association for the Advancement of Sustainability in Higher Education). This is a national association of colleges and universities that took the sustainability challenge to heart, and wanted to figure out how to improve sustainability practices in the higher education community. It was created by the universities themselves, and not an outside entity. They came up with their own audit system, STARS (Sustainability Tracking Assessment and Rating System). Keeping the framework of CORE, we put together different working groups and asked people to complete the STARS audit as well as make recommendations. After a year, we came out of the audit with a silver rating. This affirmed that we have been doing sustainability for a long time at DePaul, but we just weren’t experts at telling our story. The results also proved that sustainability at DePaul looks different than it does at other universities, and the comparison does not always help.

We began to see the different focal points in our sustainability efforts, which were captured in the University’s first ever Institutional Sustainability Plan (ISP). We were fortunate enough to be selected as a Vision 2018 expert team. Vision 2018 contains some elements of the ISP.

When the reporting and recommending task of SITF had been completed, we asked for a 1 year extension, which we are currently in the middle of, to create the DSN (DePaul Sustainability Network). Because so much of this was broad based, and from the ground up, we wanted to maintain a network of interested people as an opportunity for people to continue to collaborate on multiple fronts of sustainability. We are currently figuring out how this can live on institutionally. It is definitely an ongoing process. What we have seen from other universities, there can be a top down approach where they start with a center, office, or officer, but those can be limited to one aspect of university life.

Our scope is more broad based, again centered around the acronym CORE. The DePaul Urban Garden is a great example of how a sustainability network can succeed. The university had space on the corner of Belden and Bissel avenues s in Lincoln Park. Three homes on this site were razed, and rather than letting it sit empty and unused, a a combination of students, faculty, and staff lobbied to use the space for an urban garden. A student organization, the Urban Farming Organization, was formed with the support of faculty and staff, the space was converted to raised beds, and it is now managed by an MBA student who is currently studying ways to expand urban farming. The garden donates 50% of the food grown to the food pantry at the Vincent de Paul parish. The DSN is a space that makes these kinds of connections possible.

CFBC: What was your first impression of DePaul?
JM & SK: DePaul is definitely diverse and large. We respected that a lot of the students were not only taking classes but also working part to full time. That really helped us structure the way we were teaching. We could focus our lessons on what was really relevant to the students at this point in their lives.

CFBC: What has been the most rewarding aspect of your work with DePaul, and why?
JM & SK: There are two components to this. One is meeting people from across the university, and seeing the university from many perspectives. In our experience people develop a habit trail. You know who you know, you do what you do, and you see what you see. At DePaul we have been fortunate enough to see the University from different perspectives, and it’s unbelievable the amount of work that is being done and how it is mission related.

Second, in the context of sustainability, there are so many people who are passionate about the tough social challenges in the 21st century. The work that has been done on global poverty alone is amazing! There are so many people committed and it’s inspiring.
CFBC: What has been your greatest lesson you’ve learned through your work at DePaul?
JM & SK: DePaul is a dynamic place that fosters an entrepreneurial culture, and that is reinforced constantly. 3 graduate sustainability programs have been created since the creation of the SITF. We’ve heard that for other Universities trying to establish programs, it takes much longer. Because of the entrepreneurial spirit, it can be hard to wrap your head around what the University does as a whole.

CFBC: What do you wish CFBC members knew about your organization, and why?
JM & SK: One thing is that for-profit initiatives can be a fundamental driver of sustainability. I think many people are very disappointed in the current state of political discourse. There is a diminishing hope for effective government structure to focus on these large sustainability problems. In the for-profit landscape, when leaders have the opportunity to use some moral imagination, they can be real drivers of systemic change.

CFBC: Tell me about someone who has influenced your decision to do the work you do?
JM & SK: We come to sustainability from different backgrounds and perspectives, perhaps with different inspirations. From a Vincentian mission perspective, there are a number of inspiring people at DePaul who are working on systemic change at local, regional, national, and international levels. A lot of people share our concerns about the current patterns of resource consumption. That needs to change.

CFBC: What do you do when you aren’t working?
SK: That is a tough question because I am pretty much always working. I have two jobs, my work with the university and then being a husband and father to two small children. When I’m not working for the university, I am focusing on my family.
JM: Like Scott, I spend most of my time working. However, my children are mostly grown. I have a daughter who is a biology major at DePaul, another daughter who is majoring in human nutrition at St. Louis University, and a son who is a junior at Lincoln Park High School. My home and work obligations pretty much swallow up my time!

CFBC: What one book would you recommend to our members?
SK: I would recommend, Winner Take All: China’s Race for Resources and What It Means for the Rest of the World by Dambisa Moyo.
JM: Is Sustainability Still Possible? State of the World 2013; The Worldwatch Institute

CFBC: What are your plans for the future?
SK: To institutionalize the DePaul Sustainable Network.
JM: I echo Scott’s sentiments to institutionalize the DSN. I hope to apply for promotion to Full Professor in a few years. Personally, my goals have always been faith-family-friends and work.

Posted in News, Spotlight | Tagged , , , , , , , |

Let it Snow, Let it Snow, Let it Snow

Posted on April 12, 2013 by Chicago Family Business Council

Burke, Warren, MacKay, Serritella, P.C.A recent Illinois Appellate Court case made life a lot easier for those who love to spend their summers in Chicago but can no longer tolerate the long, cold winters and the Illinois income and inheritance tax systems.

Old Man Winter Isn’t For Everyone

Tyler and Talbot Cain lived and worked in Illinois for nearly 31 years before Old Man Winter got the best of them. Shortly after Tyler Cain’s retirement in 1990, the Cains, like many snowbirds, purchased a home in Florida. Until 1995, the Cains remained Illinois residents while spending part of each year in Florida. In 1995, the Cains decided to enjoy all of the benefits of the Sunshine State and establish legal residency.

To establish their Florida residency, the Cains did more than simply live in their Florida residence. The Cains filed a written declaration of domicile with the local authorities in Florida, obtained Florida drivers’ licenses and registered to vote in their local jurisdiction. Mr. Cain went so far as to register his hand gun in Florida and purchased burial plots in Florida.

While in Florida the Cains developed relationships with several medical professionals, but also maintained their preexisting relationships with their Illinois-based medical professionals. In addition, the Cains utilized tax and legal advisors located in both Florida and Illinois.

Between 1996 and 2005, the Cains divided their time between their Florida residence and their Illinois residence spending nearly 1,700 days in Florida and 1,666 days in Illinois. (For those of you keeping score at home, during that period the Cains also did quite a bit of travelling outside of Florida and Illinois.)

In keeping with their active lifestyle, the Cains maintained private club memberships in both states and were members, board members and/or committee members of several organizations in both states.

Nothing Spoils Fun in the Sun Like a Visit From the Tax Man

In August 2006 the Illinois Department of Revenue sent the Cains a notice of tax deficiency claiming that the Cains owed $1.842 million in unpaid income taxes and penalties. The Illinois Department of Revenue argued that the Cains were Illinois residents despite the fact that they owned a residence in Florida. In short, even though the Cains took many steps to establish their residency in the State of Florida, it was not enough to remove them from the jurisdiction of the Illinois taxing authorities. Presumably well-rested and tanned, the Cains were not about to be pushed around. The Cains took their case to court.

In the lower court decision, the court reviewed the specific steps taken by the Cains to establish themselves as Florida residents and determined that the Cains were “mere seasonal visitors” to Illinois and were not residents of Illinois. Not to be denied, the Illinois Department of Revenue appealed the lower court’s decision. In reaching its decision, the Appellate Court was guided by the Illinois Department of Revenue’s very own regulations and ruled in favor of the Cains. After reviewing all of the facts, the Appellate Court concluded that the Cains’ “intended to live in Florida for half the year and visit Illinois, not the other way around.”

If You Plan to Play in the Sun, Make Sure You Are Protected

Many taxpayers like the Cains visit Florida for the sun, beaches and golf; however, most stay because Florida has no separate state level income tax or inheritance tax. In Illinois, the top marginal income tax rate is 5% and the top marginal inheritance tax rate is 16%.

Establishing residency outside of Illinois can be a challenge, particularly if a taxpayer wishes to maintain some connection with Illinois. Even though the Cains took many common sense steps to make it clear that they intended to establish themselves as Florida residents, the Illinois Department of Revenue was not deterred. In fact, the Illinois Department of Revenue forced the Cains to incur the expense of litigating the matter all the way through the Illinois Appellate Court
despite the fact that the regulations published by the Illinois Department of Revenue supported the Cains’ position.

Because no two taxpayers are alike, the courts (and the local taxing authorities) are inclined to carefully review the facts of each situation. Unfortunately, in the current economic environment it has become clear that Federal, state and local taxing authorities will aggressively pursue tax revenues despite common sense actions undertaken by a taxpayer and despite the taxpayer taking legal steps prescribed by the state in which they are seeking to establish residency, such as filing a written declaration of domicile. Without proper planning, a taxpayer may face an unexpected tax bill just like the Cains.

For individuals considering a change of residency, we strongly encourage that they plan ahead. Oftentimes this requires paying close attention to the details of their lives, such as obtaining a new drivers’ license and/or a new voter registration card, and complying with the nuances of the laws of the state in which they intend to become a resident, as the facts are often more important than the law itself.

Immediately following its loss in the Appellate Court, the Illinois Department of Revenue proposed new regulations, which were intended to change the result reached by the Appellate Court. These proposed new regulations adopt two new presumptions of residency. First, an individual will be presumed to be a Illinois resident if the individual is receiving a homestead exemption for Illinois property. Second, an individual who is an Illinois resident in one year will be presumed to be a resident in the following year if the individual is present in Illinois more days than the individual is present in any other state. Although both of these presumptions may be rebutted by clear and convincing evidence, it is the taxpayer’s burden to do so by producing to evidence to overcome the presumption.

In light of the position adopted by the Illinois Department of Revenue in its litigation with the Cains and its proposed new regulations, we strongly encourage individuals to consult their attorney or tax preparer for guidance in establishing their residency outside of the State of Illinois and maintaining good records in the event of an audit.

As we await warmer weather, keep in mind that a well-prepared taxpayer can avoid Old Man Winter and the Tax Man.

* * * * *

To discuss the issues related to establishing residency in a more favorable tax jurisdiction, including Florida, Arizona or Texas, please feel free to contact Jonathan W. Michael.  Jonathan is licensed to practice law in the State of Florida and has successfully assisted many clients in establishing residency outside of the State of Illinois.

Jonathan W. Michael, Esq.
Burke, Warren, MacKay & Serritella, P.C.
330 N. Wabash Ave.
Chicago, Illinois 60611-3607
Direct:  312-840-7049
E-Mail:  jmichael@burkelaw.com

Jeffrey D. Warren, Esq.
Burke, Warren, MacKay & Serritella, P.C.
330 N. Wabash Ave.
Chicago, Illinois 60611-3607
Direct:  312-840-7020
E-Mail:  jwarren@burkelaw.com

Posted in Burke, Warren, MacKay & Serritella, P.C. | Tagged , , , , , , , , , |

Member Spotlight on Jacqui McGrew of Hoodz

Posted on April 11, 2013 by christina

Chicago Family Business Council: What year was Hoodz founded?
Jacqui McGrew: Hoodz was founded in 2010.

CFBC: Tells us a little bit about your company and the history behind it.
JM: Hoodz is a commercial kitchen exhaust cleaning company. We are part of a national franchise group owned by Belfor International, the world’s largest restoration company. As a franchise concept that has only been around since 2009, you could say we have learned much about this industry alongside of our Franchisor. Our clients include restaurants, hotels, schools, hospitals and retirement homes and anyone who serves food to the public is required to have our service performed for the prevention of grease fires.


CFBC: What family members work with you in the business, and what positions do they hold?
JM: I own Hoodz with my husband, Chris, and although he is employed full-time outside of the company-he supports me on many levels on a daily basis. I often refer to him as my “Moonlighting CFO” and I rely on his significant financial expertise and management experience to help guide me in the many challenges I face as CEO.

CFBC: Describe one of your most memorable events at your company and why it meant so much to you.
JM: Hoodz recently hosted their national convention in Chicago. It was nice to meet with our peer group and since we have 150 offices across the country it was a great opportunity to learn from each other and to hear about the progress we have all made over the past year. We were also pleased to receive a few awards including being recognized as the Franchisee of the Year.

CFBC: What one aspect of working with family is more important to you and why?
JM: The most important aspect of working with Chris is ensuring that our success with Hoodz does not become more important than our relationship with each other and with our kids. Although it’s not always pretty, we have successfully tackled the many issues we have come across. Fortunately, our relationship is also as strong as it’s ever been. We’ve certainly made mistakes, but at least we can say that we did it together. I think that we may have even learned a thing or two along the way.

CFBC: What has been the most rewarding aspect of your experience with your forum and with the CFBC?
JM: The most rewarding aspect of my experience with the Gamma forum is that I have a group of people surrounding me that I appreciate and respect. I feel like I can talk with them about a wide range of topics and they will be supportive and nonjudgemental. The CFBC is a great resource and I enjoy the educational opportunities that are provided on a regular basis.

CFBC: What are your plans for the future?
JM: I am planning to apply for WBE ( Women’s Business Enterprise) Certification. I know we will continue to grow our company and increase our profitability this year and into the future. I look forward to continuing to distance myself from certain aspects of the day to day operations in order to spend more time strategizing on our long term goals.

CFBC: If money was no object, what one thing could you do to enhance your company?
JM: If money was no object, I spend more of my time and energy building relationships with the prospects, clients and employees that I work with on a daily basis. Also, because I enjoy interacting with people of all walks of life, I would place more of an emphasis on helping others and giving back to the community through the organizations I care most deeply about.

CFBC: If you were talking to a potential CFBC new member, what would you say about the organization to encourage their membership?
JM: When I talk with potential CFBC members, I always share with them some of the insights I’ve gained through the concepts of Emotional Intelligence Protocol. It has helped me to be more mindful when dealing with the people in my life. I also believe there is a lot of value in having a diverse network of business owners from whom I can draw inspiration and best practices.

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DePaul Spotlight on Dr. Joel Whalen

Posted on March 27, 2013 by christina

Chicago Family Business Council: Tell us a little bit about your department?
Joel Whalen: Over the past 10 years, DePaul’s Center for Sales Leadership has become the largest sales organization in the world; a thought leader in sales education.

Our mission is to prepare our students to be successful the first 2 or 3 years of their career. The synergy we have with our corporate partners is outstanding. The classes offered are unique to DePaul. We teach the competencies that corporations want. Few universities do that. A typical college sales class uses textbooks and syllabi that are at least 10 years old teaching concepts from the ‘60’s and ‘70’s. At DePaul we started with the question, “what do our students need to know, believe and be able to so to be successful salespeople.” We then we designed classes in concert with our corporate partners to accomplish those goals.

Our founders are very successful business leaders, Clancy Ryan, Dan Strunk, and Dave Hoffmeister. Dave and Dan devoted full time work to our center, as executive residents. They brought years of experience to our center and gave focused dynamic leadership. Clancy brilliantly conceived the Center, then brought the great 3M Company to us as major partners. That gave us a huge, early boost in ideas, funding, and credibility.

Today we offer 13 graduate and undergraduate classes taught by over 26 faculty. As thought leaders we spend a great deal of time traveling and teaching our methods to other universities and corporations. For example, Dan’s work in category managements and customer relationship management (CRM) is the best in the world. Universities all over the world use his book and cases.

CFBC: Tell us why you chose to come to DePaul
JW: It was a lovely twist of fate. I had no idea how wonderful DePaul would be until I started working here. Initially I came here because DePaul was in Chicago and they invited me to interview. I was considering offers from southern universities and a school in Hawaii. My wife, Tina, and I thought it was viable because of the metropolitan area and it was near great corporations. I had come out of years in radio and TV and I wanted to apply my experience to working with large corporations.

It was extraordinary good fortune for me. I came from Florida State and the University of Florida where the teaching does not compare to DePaul. I was unprepared for the quality and practicality of teaching practiced at DePaul’s College of Business.

CFBC: What was your first impression of DePaul?
JW: I was struck by how smart and nice everyone was. They were down to earth people. I was also thunderstruck by how unbelievably cold it was, considering I lived in Florida for 30 years. Shiver.

CFBC: What has been the most rewarding aspect of your work with DePaul, and why?
JW: The entrepreneurial and open nature of DePaul. DePaul is embracing to new people and new ideas. For example, my work in communication science has received tremendous support from faculty and students. I have been able to develop a full scale teaching methodology in communication. I now show other universities what I learned here. I also appreciate the opportunity to work with the faculty and staff from across the university, especially the athletics department. I work for as Men’s Basketball Team’s Life Skills Coach teaching the same methods we use in the Business School.

CFBC: What has been your greatest lesson you’ve learned through your work at DePaul?
JW: A leader is someone who has a servant’s heart and wants things their way; (S)he is always looking for ways to help and support others, yet wants things his/her way. This is what I would describe as a DePaul leader.

CFBC: What do you wish CFBC members knew about DePaul or your department, and why?
JW: The faculty in the department of marketing is the finest in the world; they are a rare blend of scientist and scholar with a great hearts and talent as teachers. They are open nurturing people who want to help. They have world-class brains, yet are down to earth people. If I had a business that is the kind of person I would want to ask for help. One of the nice things about DePaul is that we are very modest and not great at self-promotion. I think my department stands with any university in the world. I encourage your members to ask for help from DePaul professors. They will find great knowledge and skill with a nurturing attitude.

CFBC: Tell me about someone who has influenced your decision to do the work you do?
JW: Jim Jenness. He is a prominent DePaul alumnus. When I met him he was head of creativity at Leo Burnett. He went on to head Leo Burnett and is now chair at Kellogg’s Company. In early 90s I was struggling to teach MBA students to be better communicators. I saw Jim present and was dazzled by how well he spoke: Jim used his slides beautifully. He went into the audience to engage them. I thought if we could find a way to get our MBA’s be more like Jim, it will be tremendous. He is the template I use to teach people about communication. It works beautifully.

CFBC: What do you do when you aren’t working?
JW: I like to fly small airplanes. I also like to read beautifully descriptive novels by a nice warm fire.

CFBC: What one book would you recommend to our members?
JW: If they haven’t read it already, Dale Carnegie’s “How to Win Friends and Influence People”. It’s where you start your study of people.

CFBC: What are your plans for the future?
JW: To move more into e and internet based communication. I am working to learn to edit audio and video for small screens. I would like to transfer my materials into eBooks. I look forward to more travel to show other universities how we teach communication at DePaul.

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Member Spotlight on Al Youna of YMI Mechanical, Inc.

Posted on March 12, 2013 by christina

Chicago Family Business Council: What year was YMI Mechanical, Inc. founded?
Al Youna: YMI Mechanical, Inc. was founded August 31, 2009, right at the start of the downturn.

CFBC: Tell us a little bit of the history behind the company?
AY: I wanted to be a Mechanical Contractor in the Healthcare arena; I had a mindset and set goals for the service level we wanted to provide to our clients, which was the absolute best in class experience. We wanted to give our clients a sense of value for the service we were providing, a level of expertise and an ongoing communication and advice for their facility to make sure the construction projects were not the money pit that history has shown.

CFBC: What family members work with you in the business?
AY: Currently both my young sons work part time driving a truck and making deliveries, cleaning up our warehouse and keeping tools and materials that come back in order. It’s very demanding as deliveries need to be coordinated and delivered at precise times of the day. We are dealing with Hospitals that receive deliveries every 10-15 minutes and the dock has to be clear to maintain the essential material needs.

CFBC: How did you hear about the CFBC and what motivated you to join?
AY: I had been mentioning to our Banker, Chris Prestegaard about joining a peer group, he then brought up CFBC and gave me a brief history of the organization from Jim Liautaud. It took a couple of mentions and then he said there was a seminar going on and I just decided to register and show up. The great thing was it was free to attend and that encouraged my attendance to check it out first hand. Then the forum training was the clincher, Brian McIlwee did a great job presenting.

CFBC: How has CFBC helped your company succeed?
AY: It’s still early days for us yet, it has not had quite the impact, but it’s still early days.

CFBC: What has been the most rewarding aspect of your experience with your forum and the CFBC?
AY: It’s impossible to find 8 CEO’s and throw something at them that is troubling you and get constructive feedback and similar experience. On the other hand I was not used to the sharing my private life with what amounted to 8 strangers, but at our first retreat I think we bonded because I shared and discussed my lifeline.

CFBC: Is there one thing you have learned from being a member of CFBC that has impacted your business or your life the most?
AY: That we are not alone, there is a group of people that will try to help you in whatever difficulty you may be experiencing.

CFBC: What do you enjoy doing in your free time?
AY: I enjoy spending time with my family, which is difficult at times because I am trying to build a strong foundation for the business, but I love playing hide and seek with my young children. I also play soccer year round, indoors and outdoors, never to leave out golf as well, but it’s so time consuming that I only average about 5-6 rounds a year.

CFBC: What one book would you recommend to your fellow CFBC members?
AY: Without hesitation I would recommend, “Think & Grow Rich” by Napoleon Hill, for me that was a life changer.

CFBC: How does your Company celebrate successes?
AY: That’s easy, I do the dance, the shuffle, my version of the shuffle in front of everyone in the office, and yes they all look and laugh at me, I still do it though.

CFBC: What was your first job?
AY: I worked in a Pub in a hotel downtown London near the American Embassy as a busboy. This was a very busy pub. I would come in the morning to clean up the pub, vacuum, pick up the glasses, wipe the tables clean, and get rid of all the empty bottles for returns. For extra cash I would work a second shift as a bar tender.

CFBC: Do you have a favorite song?
AY: I don’t have one particular song that is a favorite, but my current favorite song is the Harlem Shake. If I could show you a video of my sons (3 year old and 1year old) doing the Harlem shake, you would see why that’s my song at this time.

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Three Important Questions about the Impact of Healthcare Reform on Small Businesses

Posted on March 12, 2013 by christina

Question:  I have heard that because my business employs fewer than 50 full time employees that the new healthcare law does not apply to us.  Is that true or false?

Answer: The new healthcare law, The Affordable Care Act (ACA), actually applies to all of us.  The “Employer Mandate”, which requires larger businesses to offer a group health insurance plan to employees, only applies to the larger groups, more than 50 employees.  That being said, this law changes the nature of health insurance for everyone, and applies to all American citizens.  The law will change the way health insurance is bought and sold.  Importantly, the law requires that every American citizen acquire health insurance or face a tax penalty.  In order to achieve this daunting requirement, health insurance will be offered on a guaranteed issue basis, without medical underwriting and at pre-published pricing (community-rated) to anyone who applies for it.  Smaller companies, with fewer than 50 employees will have new options regarding how they treat the health insurance needs of their employees, if they choose to address them at all.

Question:  I have heard that the Government will offer subsidies to lower income families in order to help them buy health insurance.  How will that affect the employees of the typical small business?

Answer:  While detailed information regarding the proposed subsidies is still pending, the ACA law does suggest that any family living at or below four times the federal poverty level will be eligible for financial premium assistance.  There is language that suggests these families will be able to buy their insurance and not be asked to pay more than 9.5% of their household income – the remainder of cost will be subsidized.  This assistance is only available to folks who 1) are not offered health insurance from their employer (at a cost less than 9.5% of household income), and 2) purchase their health insurance through a “public exchange.”

We believe that because most small businesses employ fewer than 50 people, and because the pay scale at the typical small business is moderate, that this provision of the law will affect a great number of industries’ employees.  As regulations for the “Public Exchange” become finalized, we expect that there will be further clarification of the rules surrounding the subsidy program. Stay tuned for further developments.

Question: At my study group, one of the members suggested that this new law was taxing health insurance in ways it has not been taxed before.  I have not been able to find explanations of this tax – how does it work?

Answer:  There are three ways in which health insurance will be taxed starting 2014.  While we expect these taxes to ultimately affect the cost to the consumer, they are written as taxes on insurance companies.  Because of the way these taxes are written, they are hard to find in the mainstream discussion. They break down as follows:

  1.  The “favorable” outcomes research – $1.00 for each insured member will be paid to the Government this year and $2.00 next year.  This money will be used for a research project.  The nature of the project is to determine how better outcomes can be achieved when Americans get sick.
  2. Premium Tax – The insurance industry is being asked to help fund the creation and ongoing operation of the public “Exchange” system.  Therefore, a tax of between 2-3.5% of premium will be paid by all fully insured plans.
  3. Reinsurance Fund – Because of the move to Community Rating and the elimination of medical underwriting it is possible that an insurance company could find itself in a “Bad Risk” situation.  To help protect the consumer from a failing insurance company, approximately $65 for each insured member will be collected to create a fund that protects us all.

While these taxes are to be assessed on the insurer, we expect to see them passed through to the consumer.  The impact could be an increase in cost as much as 5-6% for these provisions alone.  Already, we are seeing a much higher average annual cost increase for small business health insurance plans.

For more information, please call Marcus Newman RHU, CBC at GCG Financial, Inc.  847-457-3058.

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DePaul Spotlight on Dr. Terri Lonier

Posted on February 25, 2013 by christina

Chicago Family Business Council: First, let us welcome you again to DePaul, and now can you tell us a little bit about your department?

Terri Lonier: Thank you again. The Coleman Entrepreneurship Center is celebrating its 10th year as DePaul’s entrepreneurial hub for students, alumni, faculty and staff. It’s a partner to the university’s acclaimed academic entrepreneurship program, which has been recognized as one of the top 25 programs in the country for nearly 20 years, under the leadership of Professor Harold Welsch. We offer individual consulting, seminars and workshops with entrepreneurial professionals, and programs such as our new venture competition – Launch DePaul – all designed to help DePaul students and alumni launch and grow successful companies. We’re the place where theory meets practice, and entrepreneurial ideas come to life.

CFBC: Tell us why you chose to come to DePaul

TL: I was drawn to DePaul because it is known as a university with strong academics that prepares students to succeed in the working world. There’s a great diversity in our students, both in terms of their backgrounds as well as their career aspirations. I also appreciate DePaul’s Catholic heritage, and of course, the fact that it’s in Chicago – my favorite city in the country.

CFBC: What was your first impression of DePaul?

TL: I think of DePaul as a “best of both worlds” place. It’s a large university with a warm, small-college feel. It has a downtown urban campus as well as a more traditional campus in Lincoln Park. And at our Coleman Entrepreneurship Center, we bring together what students learn in the classroom with real-world business experience.

CFBC: What has been the most rewarding aspect of your work with DePaul, and why?

TL: Every day brings a new opportunity for the faculty and staff at the Center to help students make their entrepreneurial dreams come true. Whether it is one-on-one coaching or our workshops and seminars that bring together students, alumni, and the Chicago entrepreneurial community, it’s very satisfying to see the connections being made and new businesses launched. As an entrepreneur, it’s also rewarding to know that sharing my experience can help shave years off of someone else’s learning curve.

CFBC: What has been your greatest lesson you’ve learned through your work at DePaul?

TL: I’m still relatively new, and I keep discovering the many resources of the university. Because entrepreneurship touches students across the entire DePaul campus, I’m very focused on building bridges across departments, programs, and other centers. Just as every entrepreneur knows, you must leverage your resources of time, energy, and finance to achieve results. In our case, results are measured in the impact we have with our students, the reach we achieve across the DePaul community, and the contribution we can make to the vitality of the broader entrepreneurial ecosystem.

CFBC: How could you serve as a resource for the CFBC members, and how could they serve as a resource for you?

TL: I am very impressed with CFBC and the rich variety of programs and resources you offer. Judy and I have already begun to brainstorm the numerous ways that our organizations can work together. There are many potential synergies, from CFBC members serving as mentors to students or as judges for our venture competitions, to CFBC members tapping into the advising resources of the Coleman Entrepreneurship Center. In addition, co-sponsored programming can serve CFBC members as well as DePaul students and alumni, enabling us both to expand our reach.

CFBC: What would you tell our members who are thinking about working with DePaul?

TL: DePaul students are brimming with creativity and eager to interact with entrepreneurial professionals from all industries. We will soon be launching a more structured advising process that will make it easy for business owners to connect with students. These interactions can range from a single half-hour session to an ongoing mentoring relationship. We’ll be experimenting with what works best for both the entrepreneurs as well as the students, and would very much enjoy having CFBC members involved.

CFBC: What do you do when you aren’t working?

TL: That’s like asking a fish what they do when they aren’t swimming! I’m an entrepreneur, so even in my dreams I’m thinking up new ideas that enhance the entrepreneurial spirit. I’m also a certified docent for the Chicago Architecture Foundation, so on weekends you may find me giving architectural tours of the many celebrated skyscrapers in downtown Chicago.

CFBC: What one book would you recommend to our members?

TL: My own small business books are currently out of print, so I’d like to nominate those of two colleagues. I’ve been friends with Seth Godin and Dan Pink for more than a decade, and their work continues to inspire me on a regular basis. They both have new books out – Seth’s The Icarus Deception looks at thriving in an economy that needs more courage and less compliance, while Dan’s To Sell Is Human shares insights on sales, persuasion, empathy, and perspective.

CFBC: What in your early work life had an impact or motivated you?

TL: I became involved with the personal computer industry in its very early years, and feel fortunate to have worked with innovative leaders at companies such as Apple, Microsoft, Cisco, H-P and others. I witnessed the birth of an entire industry, one that continues to reinvent itself as technology progresses. My late parents were also a big influence. My dad, a self-employed owner of a television sales and service company, gave me a love of technology as well as entrepreneurial DNA. My mom always let me know that hard work and persistence pay off, and that integrity and attention to detail are the basis of professionalism. Oh, and my Catholic schooling taught me to love language – and how to diagram sentences.

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