Closely Held Businesses

What Does The Wayfair Decision Mean to Your Multi-State Business?


Have you ever noticed that no sales tax was collected on some of your online purchases? Although, internet purchases are not exempt from tax, e-commerce sellers need only to collect a state's sales and use tax from in-state customers if the company has nexus, also called "sufficient physical presence" in a state. This is true until the U.S. Supreme Court announced its decision in the South Dakota v. Wayfair Inc. case in June 2018. Read More

How long does the IRS recommend keeping your records?


The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.Read More

California Announces Change to Independent Contractor Test


Does your business receive any labor or services through the work of independent contractors? Earlier this year, the California Supreme Court passed a ruling which completely changed the standards for qualifying as an independent contractor vs an employee. The new rules make this classification much more clear-cut, however, this simplicity has made it substantially more difficult to qualify as an independent contractor. Read More

Considering Consolidation


As companies diversify and restructure to achieve tax and operational goals, the complexities of consolidation remain at the forefront of financial reporting. Determining if your company meets the requirements for consolidation on a regular basis can lead to a smoother financial reporting process. Read More

What Have We Learned From the Tax Cuts and Jobs Act in the Last 6 Months?


The Tax Cuts and Jobs Act became law on December 22, 2017, with most provisions taking effect January 1, 2018. The last six months has seen an unparalleled amount of interpretations of the new law with many issues still awaiting guidance to provide clarity. This article will update you on what we know to be true for 2018 and where we expect to receive more guidance before the end of the year. Read More

Don't Convert Your Garage, Convert Your Business!


Are you using the most advantageous business entity? There are many things to consider when choosing a business entity type but choosing the right one for your situation can save you a lot in tax and may be able to limit your personal liability. Read More

Show Me the Money: How to Pull Cash Out of Your Business


Do you have a successful business with cash reserves that you want to transfer to your personal account? Depending on the business structure, prior year earnings, and what you have personally contributed to the business, there could be a significant tax impact from transferring the money. This article goes through the common strategies used to get money out of a business and compares how they relate to the different business structures. Read More

Choosing a Retirement Plan for Your Business


When deciding on a retirement plan for your business, the number of available options can be overwhelming. Each plan has its benefits, but it is important to understand which is most suitable for your particular situation. The retirement plans detailed within can help you determine which plan is most appropriate for your business and its employees. Read More

Cost Segregation - A Celebration of Accelerated Depreciation


Have you recently purchased a building or are you currently in the market to? If you are looking to take advantage of all the tax deductions a building can provide whether its residential or commercial property, participating in a cost segregation study might be a realistic course of action for you to achieve this goal. Read More

Are you prepared to sell your company?


It may be time for you to sell your business, but what do you need to do to prepare for that to happen? Whether you are selling now or in the future, there are many steps that you can take as a business owner to ensure that the sale of your company goes smoothly.Read More

Tax Reform: Pass-Through Income Deduction Edition


Currently, owners of partnerships, S corporations, and sole proprietorships – as “pass-through” entities – pay tax at the individual rates, with the highest rate at 39.6 percent. The highest rate is reduced to 37 percent under the Tax Cuts and Jobs Act starting in 2018. The Act also allows a temporary deduction in an amount equal to 20 percent of qualified income of pass-through entities, subject to a number of limitations and qualifications. Read More

Tax Reform and What it Means for Your Business


The Tax Cuts and Jobs Act became law on December 22, 2017, with most provisions taking effect on January 1, 2018. While much of the discussion regarding the new tax law has focused on changes that impact individuals, there are many changes coming for businesses as well. Some of these changes will be seen at the entity level, while others will be reflected on the personal returns of owners of pass through entities.Read More

Disaster Recovery Plan and Business Continuity - Prepare for the Unexpected


Back in September, Hurricane Irma, the most powerful Atlantic storm observed since 2005, left devastating destruction across the Caribbean countries. Meanwhile, the Napa Valley wildfires coupled with the floods damaged and destroyed many wineries, leaving local businesses heavily impacted. Although it is not always possible to predict when disasters will occur, a well-developed disaster recovery plan will always help business owners to prepare for the unexpected. Read More

It's the Law - Electronic Payment Requirements


The IRS and state tax boards have been working to increase the number of electronic transactions between taxpayers and government. Electronic payment, also known as e-pay, is the quickest and most secure form of payment available. All data involved with electronic payments is protected through encryption, making it more secure than other paper forms and handwritten checks. Although e-pay is only required for certain entities and individuals, all taxpayers should be aware it is an option.Read More

Tax Trap - States Use Nexus to Get a Share of Tax Revenue


Are you operating your business in multiple states? Performing certain activities, or reaching certain thresholds, can create a requirement to file tax returns and pay taxes in those states. Tax nexus laws are used to determine if a state filing requirement exists. While the tax nexus laws vary by state and type of tax being imposed, most states use a similar approach. By understanding this approach, you can identify states where your business activities may create a filing requirement.Read More

Flexibility at its Finest With Partnership Mergers


You are the owner of a partnership and someone offers to buy your business or combine practices. This offer may be an incredible opportunity. While it may not be the main focus during negotiations, the tax implications of the reorganization or sale are important and can have a significant effect on your bottom line. Read More

Organizational Documents, How to Set Your Business up for Success


If you are thinking of starting a business, or have already begun the process of starting your own business, then you’ve probably thought about how you would like it structured. But have you thought about what you need in your organizational documents to substantiate your business when it comes down to the legal nitty-gritty of compliance with laws and regulations? Read on to find out what you need in your organizational documents based on your type of business.Read More

Diversifying a Concentrated Stock Portfolio through Exchange Funds


Do you hold a large concentrated position in low basis stock? Do you want to diversify that position without incurring the significant capital gains tax from selling the stock? Click the link to continue reading about Partnership Exchange Funds and if they will work for you!Read More

Oops, Did You Accidentally Subject Yourself to Corporate Tax?


While all corporations are created equal, they do not always remain equal in the eyes of the IRS. Every corporation begins its life as a C Corporation, but owners can then elect to be treated as an S Corporation by filing Form 2553. Although the S Corporation status can be advantageous in some situations (i.e. avoiding double taxation), there are guidelines that the shareholders need to follow in order to maintain this status. Read More

Buyers and Sellers Beware! Section 382 Limitations


Are you considering purchasing or selling your interest in a corporation? Does this corporation have net operating losses or tax credit carryovers? If so, those losses and credits may be limited under Section 382.Read More

Benefits and Detriments of Selling a Corporation's Stock vs Assets


Looking to sell your corporation, but don’t know if you should sell the stock or the assets? The difference between the two may not appear large, but there may be disproportionate tax consequences. Read More

Losing Your Mind Over Multi-State Taxation?


Does your company do business in multiple states? What does this mean from a tax perspective and how do you determine which states require tax returns? The answer to this question is different for each state, however, most states follow similar principles. By understanding these fundamental concepts, you can better prepare your business to meet state tax obligations and potentially develop a plan to create state tax savings. Please click below for more information.Read More

Statement of Information Filing Requirements


When was the last time that you filed a Statement of Information for your business? Have you ever filed a Statement of Information? Don’t end up paying 10 times as much for filing late.Read More

Tax-Free Reorganization Options for the Sale of Your Business


Are you thinking of selling your business, but want to defer paying tax on the sale? There are a several ways to structure the sale to minimize the tax consequences. One effective way of achieving this goal is to structure the sale as a tax-free reorganization. Read More

Potential Tax Impact of the Trump Tax Plan on Closely Held Business:


Click here to learn how the Trump Tax Plan can affect your Closely Held Business!Read More

Selling a C-Corporation - Golden Parachute Pitfall


Are you a shareholder or employee of a C-Corporation? Is this business in the process of being sold? If so, the cash compensation you receive as part of this sale could result in significant tax costs. Without proper planning, excessive compensation also known as golden parachute payments can have serious tax consequences to you and your business. Read More

Closely Held Business Year-End Planning


As 2016 comes to a close, make sure to consider year end planning for your business and know what to expect for 2017. Read More

Alert! New Tax Return Due Dates


Beginning on January 1, 2017 the IRS has changed the due dates of 2016 tax returns for certain businesses in order to help spread out the burden of tax preparation on CPAs. The new dates are intended to help individuals who receive income from pass-through entities, such as partnerships and S-corporations, by making those documents available to taxpayers earlier. Read More

Is it Time to Form an Entity for Your Sole Proprietorship?


Do you own a sole proprietorship? Have you discussed the pros and cons of forming your business into an LLC or S-Corporation? While operating as a sole proprietorship has its benefits, you may be missing out on the liability protection and potential tax savings generated by registering your business and forming an entity. There are many factors to consider while making this decision, please click below to learn more.Read More

Have you thought about dissolving your business? Plan your business exit strategy early!


Properly winding down your business can be as important as starting and running your business. There can be serious tax consequences to dissolution and the importance of planning the termination should not be understated. Read More

Can I Get a Solar Credit for my Business, Too?


Solar energy credits aren’t just for residential properties; your business can go green and reap the tax benefits too. The same 30% tax credit you’ve become familiar with for your personal home can also provide substantial tax savings for your business. Read More

How to start your business off on the right foot


You have an innovative idea, a catchy name, a fool-proof business plan, and you feel ready to get your small business off the ground and running. Stop! Have you considered the long-term implications and tax consequences associated with setting up your business? Entity choice can have a widespread effect on your business. Read More

Five Tax Credits Every Small Business Owner Should Know About


Tax credits are a powerful way to reduce your tax liability. While deductions reduce your taxable income and therefore reduce your tax by a percentage of that deduction, credits cut your bottom line tax number dollar-for-dollar. To take advantage of any applicable tax credits, a business owner must be aware of the opportunity. Click here to learn more. Read More

Is Your Executive Compensation (Un)Reasonable?


Executive compensation is now subject to more critical examination and a higher likelihood of audit than ever before. The IRS may determine that shareholder-employees have either been over or underpaid, with negative consequences arising in either scenario. It has therefore become increasingly important to reduce the likelihood of being challenged on the reasonableness of compensation and to minimize the damage if a challenge occurs. Read More

Retirement Plans for Your Business


When choosing a retirement plan for your business, the many types and aspects can be overwhelming. Each has its benefits, but it is important to understand which is more suitable for you. The retirement plans detailed within can help you determine which plan is more appropriate for your business and its employees. Read More

Don't miss out! Is your business eligible for a Research and Development tax credit?


On December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 which made the Credit for Increasing Research Activities permanent. Significant changes in the new legislation add the ability to use the R&D credit to reduce Alternative Minimum Tax (AMT) or payroll tax for certain eligible small businesses beginning in 2016.Read More

Reporting Requirements for Independent Contractors


Has your business recently hired an independent contractor? Are you not sure what reporting requirements you may have? We can help you understand what forms must be filed, and when these forms are due.Read More

Are Uber Drivers Employees or Independent Contractors? How does this impact your business?


California is the latest state to address Uber’s practice of classifying its drivers as independent contractors rather than employees. While several states have held in favor of Uber’s classification practices, California did not agree. Employees are entitled to various protections and benefits that are not given to independent contractors. As such, it is critical for Uber, and all other business owners, to correctly determine whether their workers are employees or independent contractors.Read More

Basic Guidelines to Defer Tax on the Sale of Property


Are you considering the sale of a business or investment asset that will generate a large gain? Generally you are required to pay tax on that gain. However, an exception under Internal Revenue Code (IRC) Section 1031, described as a like-kind exchange, allows you to defer this tax. This article will provide you with the basic requirements for executing a successful like-kind exchange.Read More

Multi-State Filing


Businesses that operate in more than one state are typically required to file in the states where business is being conducted. However, it is not always clear whether an entity is doing business in a particular state. This article goes into detail regarding nexus - a standard that may cause a business to have sales and use tax, income tax, franchise tax or other business tax responsibilities in a given state.Read More

New Due Dates for Partnership and C Corporation Returns


The President signed legislation on July 31, 2015 that changes the due dates for many business and information returns for the 2017 tax year. The major changes are summarized in this article.Read More

The Healthy Workplaces, Healthy Families Act of 2014


A new bill passed in 2014 enacted the Healthy Workplaces, Healthy Families Act of 2014 within California. This act provides employees with paid sick days upon meeting certain requirements and affects all employers with few exceptions.Read More

Exit Strategies for Your Business


If you're thinking ahead to the day when you'll no longer run your business, think about these five exit strategies now so you'll be prepared for your future.Read More

Multi-State Taxation


Most large corporations do business in more than one state and, as a result, are typically subject to the corporate income tax in multiple states. This article provides a brief overview of some of the main issues to think about when operating a business in more than one state. Read More

Repair and Capitalization Rules Update


The IRS has issued additional guidance on the repair and capitalization regulations discussed in last month’s web update. This article describes how these regulations could affect your business.Read More

Finalized IRS Repair and Capitalization Rules


The IRS has completed the final regulations for repairs, capitalization, and MACRS for 2014 and future tax years. The major changes are summarized in this article.Read More

Extenders Bill


With the end of the 2014 calendar year quickly approaching, President Obama signed a bill that approves a one-year retroactive extension of a large number of temporary tax deductions, credits, and incentives that expired at the end of 2013. Many of the tax breaks in the bill relate to businesses, but a handful of them will pertain to individuals. Below are some of the major tax provisions that have been renewed and will remain in effect for the 2014 tax year: Read More

Closely Held Business Year-End Planning and Tax Issues


As 2014 comes to a close, make sure you are considering year end planning for your business and know what to expect for 2015. Read More

Basis and At-Risk for Partnerships and S Corporations


The ability to take losses in a closely held business that you are invested in is dependent on three things: your basis in the entity, the amount that you have at-risk and whether you fall under passive activity loss limitations. These calculations also may differ depending on the type of entity that you are invested in. Read More

Closely Held Business Planning


End of year tax planning for 2013 is crucial with the multitude of changes in the coming years. Many of the valuable business tax incentives or “extenders” are scheduled to sunset at the end of 2013. In addition, businesses must prepare to comply with the healthcare reform which was delayed an additional year (2015). This combination of events provides tax planning considerations unique to 2013 that requires a multi-year strategy taking into account a variety of scenarios and outcomes.Read More

Patient Protection and Affordable Care Act: Employer Notification of Exchanges


Although recent legislation postponed elements of the Patient Protection and Affordable Care Act, employers need to be aware of upcoming deadlines. Read More

Patient Protection and Affordable Care Act


With the “Obamacare” act fast approaching its fruition in 2014, we need to become more aware of how this will affect us as individuals and as businesses. Understanding this complicated bill is paramount for a successful transition into the New Year.Read More

Changes with Recent Legislation


Recent legislation has brought change for closely held businesses and their owners. Read More

Closely Held Business Planning


Recently, end of year tax planning for businesses has been complicated by uncertainty over the future availability of many tax incentives. Many business incentives extended by Congress in 2010 are about to expire. In addition, many of the “Bush-era” tax cuts are scheduled to sunset at the end of 2012.Read More