Closely Held Businesses

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

8/21/2017

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

7/20/2017

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

6/28/2017

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

6/26/2017

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?

5/25/2017

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

3/7/2017

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

2/20/2017

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?

2/15/2017

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

1/17/2017

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

1/17/2017

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:

12/19/2016

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

Selling a C-Corporation - Golden Parachute Pitfall

12/16/2016

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

11/22/2016

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

10/20/2016

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?

9/26/2016

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!

8/22/2016

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?

7/18/2016

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

6/21/2016

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

5/31/2016

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?

4/15/2016

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

3/24/2016

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?

2/18/2016

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

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

1/22/2016

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

Reporting Requirements for Independent Contractors

1/22/2016

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

Basic Guidelines to Defer Tax on the Sale of Property

10/22/2015

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

9/23/2015

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

8/24/2015

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

7/22/2015

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

5/22/2015

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

4/24/2015

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

2/20/2015

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

1/22/2015

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

12/18/2014

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

11/19/2014

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

11/13/2014

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

12/13/2013

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

9/3/2013

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

7/5/2013

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

5/31/2013

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

Closely Held Business Planning

12/13/2012

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