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...
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...
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...
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 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...
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...
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...
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...
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...
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...
An EIN (Employer Identification Number) is like a Social Security Number for your business. You now need one to open a bank account. But there are many business owners who don’t have an EIN number. This could be from the advice of their CPA. Or maybe,...
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...
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...
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 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...
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....
For most people, college is the first time to gain independence from your parents. But when college kids have this sort of freedom, they are prone to making many mistakes. And many of these mistakes involve money. While many of these financial mistakes are made, they...
By: Ted Sutton, Esq. There are some promoters out there who claim that they have a trust strategy whereby the trust avoids paying income taxes. But recent IRS rulings have started to crack down on this practice. The most recent ruling came from Chief Counsel...
By: Ted Sutton, Esq. A security refers to an ownership interest in a business or a financial instrument. These ownership interests can be in a private LLC, or corporation, or in a publicly traded stock or bond. There are two choices for holding ownership interests in...
By: Ted Sutton, Esq. The Corporate Transparency Act (CTA) will apply to many different types of entities. It even extends to Homeowners Associations (HOA’s), including condominiums, community associations, and co-ops. This means that if you own an interest in an...
By: Ted Sutton, Esq. Sean and Scott are very successful entrepreneurs who live in San Francisco. They have had good fortunes investing in tech startups, and both have become very wealthy. Being shrewd with their money, they both decided to invest $5 million of...