When forming an entity to start a business or hold assets, most people wisely choose the LLC. After all, there are many benefits associated with that entity type. One of which is the LLC’s ownership flexibility. This is because they can either be a single-member LLC,...
Ted Sutton Articles and Resources
How Do You Dissolve an LLC?
There are many situations where you need to dissolve your LLC. These can range from financial challenges, partnership disputes, or even a change in circumstance that affects the future of your business. But how do you dissolve your LLC correctly? After all, if you...
FinCEN Publishes a New Rule for Investment Advisers
If you thought that FinCEN would stop at LLCs and corporations under the Corporate Transparency Act, you may want to think twice. This time, FinCEN teamed up with the SEC to propose yet another new disclosure rule. This new rule would require both...
Nonexistent Entities Must Still File a BOI Report
The Corporate Transparency Act (or CTA) is a new law with significant consequences for small business owners across the country. Because the law is unique, FinCEN has had to release additional guidance on several occasions. And on July 8, FinCEN issued new guidance...
The Three Corporate Transparency Act Exemptions You Must Know
The Corporate Transparency Act (CTA) is a new law that requires many “reporting companies” to report information about the company and its owners to the Financial Crimes Enforcement Network (or FinCEN) of the U.S. Department of the Treasury. Under the new CTA rules, a...
Why Nevada’s Corporate Laws are Becoming More Favorable
When you’re forming a corporation, choosing the state of incorporation is a very important consideration. Over the past several decades, many companies reflexively decide to incorporate in Delaware. But the times are changing. With recent developments, Nevada may be...
Employee vs. Independent Contractor: What’s The Difference?
What is the difference between an employee who works for you and someone who also works for you as an independent contractor? You pay payroll (Social Security) taxes for the employee. However, the independent contractor is responsible for paying their own 15.3% in...
What is a Company Applicant under the Corporate Transparency Act?
The Corporate Transparency Act (or CTA) took effect on January 1st of this year, and it requires most small businesses to report three pieces of Beneficial Ownership Information (or BOI) to the Financial Crimes Enforcement Network (or FinCEN). The three pieces of BOI...
The Three Corporate Transparency Act (CTA) Exemptions You Must Know
The Corporate Transparency Act (CTA) is a new law that requires many “reporting companies” to report information about the company and its owners to the Financial Crimes Enforcement Network (or FinCEN) of the U.S. Department of the Treasury. Under the new CTA rules, a...
Does California Have An Exit Tax?
It is no secret that there has been an exodus of people from California. And when people leave the Golden State, others have claimed that they will face an exit tax from the Franchise Tax Board (FTB). However, this is simply not the case. There is no such thing as an...
Corporate Transparency Act Penalties and Deadlines
The Corporate Transparency Act (or CTA) is a new law that very few people are talking about. It took effect on January 1st of this year, and it requires most small businesses to report personal, non-economic information to the Financial Crimes Enforcement Network (or...
New York’s New Law That Mirrors The Corporate Transparency Act
Just when you thought they were done passing laws! After the passage of the Corporate Transparency Act (CTA), other states have passed similar laws with similar aims. Most notably, New York just passed the New York LLC Transparency Act (or NYLTA). NYLTA...
There Will Be No Delaying The Corporate Transparency Act
Recently, a federal district court judge in National Small Business United v. Yellen (NSBU) held that the Corporate Transparency Act (CTA) was unconstitutional.[1] But does this mean that you don’t need to report any information to FinCEN? Unfortunately, some people...
The New Nursing Home Ownership Transparency Regulations
Introduction When it comes to new disclosure laws, the government is not stopping at the Corporate Transparency Act (CTA). Recently, the Center for Medicare & Medicaid Services (CMS) released new regulations for REIT’s and private equity firms who own, control, or...
Do You Need an EIN Number Under The Corporate Transparency Act?
Do You Need an EIN under the Corporate Transparency Act? The Corporate Transparency Act (CTA) introduces new reporting requirements, making it essential for businesses of all sizes to understand if they need an Employer Identification Number (EIN). Many business...
Am I Really Doing Business in California? The Long Arm of the Franchise Tax Board
Dave was a young man from Washington. He had lived in Seattle his whole life, and never had any plans of leaving. In fact, Dave had just purchased a $1 million home 20 minutes from downtown Seattle. Dave had cousins in California who were avid real estate...
California Non-Residents Beware: You May Still Need to File a Tax Return
Every American needs to file a federal tax return with the federal government. And if you live in California, you are required to fill out Form 540 for your individual state income taxes. This makes sense. If you’re a resident of California, you’ll file...
Trusts and S-Corps
Given the restrictions on the ownership of S-Corporation stock, it may be difficult for grantors to store such stock into a trust. However, upon proper election, the IRS regulations allow for two types of trusts to remedy this issue. Qualified Subchapter...
California Residents: Your Out of State LLC Will Face Double Taxation
California residents beware! If you own an interest in an out of state LLC and sell it, you will have to pay even more in taxes. The California Office of Tax Appeals (OTA) recently held such in Matter of Buehler, OTA Case No. 21067960, 2-23-OTA-215P (pending...
The Cascading Charging Order Explained
Real estate investors and business owners always run the risk of being sued. If they’re not protected, a courtroom loss can lead to a loss of personal assets. Even if they use a strong LLC, the victor in a car wreck case, for example, may try to get a charging order....
California Physicians Beware: You May Have Additional Requirements
If you practice medicine in California, you may have additional hoops to jump through. The Medical Board of California requires physicians who practice under a name different from their own to obtain a Fictitious Name Permit (FNP). If you do not have this permit, you...