Blog

Green Card Holders May Not Yet Be Domiciled in the U.S. for Estate & Gift Tax Purposes

If you are considering moving to the United States, you need to consider your tax status for both U.S. income tax purposes and U.S. estate and gift tax purposes.[1] Even if you have already obtained lawful permanent residence status (your “Green Card”), you may not yet be subject to U.S. estate and gift tax as a U.S. “domiciliary”.

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So You Have Unreported Foreign Bank Accounts & Income, Now What?

With limited exceptions, every American citizen, permanent resident and even residents for tax purposes with direct or indirect ownership or control over a foreign financial account must report those accounts on Treasury Department form TD F 90-22.1, more commonly known as the FBAR [Foreign Bank and Financial Accounts Report].

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Life Insurance Proceeds can be Taxed up to 40% if not Structured Properly

Life Insurance is an excellent, asset-protected tool for estate planning. For example, if your estate will contain substantial “hard” assets, such as business interests or real estate, the cash proceeds of a life insurance policy can allow your heirs to pay your estate taxes without having to liquidate any assets. And your beneficiaries can receive the proceeds of your life insurance policy tax free.

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Major Points to Consider in a Commercial Lease: Landlord’s Perspective

From the landlord’s perspective, a tightly drafted lease can mean the difference between breaking even on a problem tenant or being forced to throw good money after bad just to force the tenant to vacate the premises and start from scratch. Lease provisions can be carefully crafted to avoid this situation and put the landlord in a superior position without being so unreasonable as to be unenforceable.

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Independent Contractor or Employee?

If your business uses independent contractors as part of its work force, then depending on the circumstances, the IRS might reclassify these workers as employees. Such a reclassification could expose your business to employment taxes and penalties.

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From a Caterpillar to a Butterfly: Converting Corporations to LLCs

Limited Liability Companies (LLCs) are almost always a better choice of entity than Corporations, yet not all businesses had the good fortune of being born as LLCs. There is hope for these corporate dinosaurs, however, as relatively recent changes in the law have made it easier to convert a corporation into an LLC.

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Unpaid Payroll Taxes Can Result in Personal Liability

Times are tough, but small business owners should think twice before deciding not to make that next payroll tax deposit. Did you know there is personal and even criminal exposure for not making timely payroll tax deposits? Moreover, a portion of the tax is not dischargeable in bankruptcy.

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S-Corporation vs. Limited Liability Company (Part 2)

Almost everyone going into business with a prospective partner does so hoping for the best, but few business people actually prepare for the worst. Forming a separate business entity as a vehicle for their business is one way to prepare for possible, personal exposure to obligations the business has with third parties.

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S-Corporation vs. Limited Liability Company (Part 1)

Many people are familiar with the “flow through” tax benefits enjoyed by the so-called “S” corporation. Instead of paying corporate tax, the corporation’s income or loss “flows through” to the owners’ tax returns every year, regardless of how much cash is actually received. For many years, and mostly for this very reason, a properly structured “S” corporation has been the optimal legal entity for a private company.

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How Thick is Your Corporate Veil? Minimizing Personal Exposure for Business Activities

Among other things, investors and entrepreneurs use corporations to limit their liability for business obligations to the amount they have invested in the corporation. This “limitation of liability” feature protects the owners from having to pay out-of-pocket for damages they did not personally cause.

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