Published May 11, 2015Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, Tax Law BlogComments 0
S-Corp or LLC Better for My Business Part II? One of the most important distinctions between an S-corp and an LLC involves ownership. In general, an S-corporation may have only shareholders who are: (1) individuals who are U.S. citizens; (2) resident aliens; (3) certain types of trusts; and (4) other S-corporations
Published May 6, 2015Blog, Business Law Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog, UncategorizedComments 0
The alphabet-soup menu may seem limitless (FLP, LLP, PLLP, etc.). For reasons beyond the scope of this discussion, the more exotic choices generally do not fit the needs of a closely-held business or startup. In most situations, the choice comes down this: corporation vs. limited liability company. In some situations, either alternative will work well. But in others, your selection can have profound consequences.
Published April 15, 2015Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, Tax Law BlogComments 0
Any civil fraud case will be very fact-specific. The key question is whether the IRS can prove, by clear and convincing evidence, that the taxpayer intended to evade a tax that the taxpayer knew he or she owed. Given the stakes involved, this merits close examination. If the IRS assesses or threatens to assess the civil fraud penalty against you, you would be well advised to consult with a tax attorney to discuss your rights and potential defenses.
Published April 7, 2015Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law BlogComments 0
Many business owners and investors are surprised to learn that in the eyes of the law, they are partners in a partnership. Maybe the word “partner” simply has picked up too many uses—think “domestic partner,” “tennis partner,” or “partner in crime.” For whatever reason, many people forget that yes, it means something in business law as well.
Published March 16, 2015Blog, Business Law Blog, Internet and E-Commerce Blog, Tax Law BlogComments 0
You have a new California Corporation, What Now? Part I dealt with an overview on your California Corporation, withdrawing corporate funds, taxes & accounting and books and records. I’ll continue to address the advantages that your Corporation will enjoy as a S Corporation.
Published March 13, 2015Business Law BlogComments 0
You have a new California Corporation, what now? By incorporating your business, you have taken an important step towards protecting yourself from business-related liabilities. The corporation is able to protect you from direct liability for its business operations because it is a separate legal person under the law. But this protection, sometimes called the “corporate […]
Published March 6, 2015Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law BlogComments 0
If you discover a tax problem—whether it be a mistake on a return or a late payment—do not drag your feet. You will almost always be better off if you work to correct the problem instead of waiting for the IRS or state taxing authorities to come to you.
Published March 2, 2015Blog, Business Law Blog, Internet and E-Commerce BlogComments 0
In November 2014 Sony Pictures experienced a debilitating cyber-attack, one which many experts believe was perpetrated by the North Korean’s. While most small businesses are unlikely to incur the wrath of Kim Jong-Un, any business with a computer or mobile device, i.e., nearly every business, is potentially vulnerable to cybercrime of one kind or another. […]
Published February 23, 2015Blog, Business Law Blog, Internet and E-Commerce Blog, meta dataComments 0
Published February 13, 2015Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog, UncategorizedComments 0
•Read the signals that something is amiss (anything from a questionable deduction to a bumper sticker proclaiming your spouse’s allegiance to a tax protestor group) •Tried talking about it (interesting conversation) or decided not to bother (even more interesting) •Finally, decided to act and call me, your tax attorney.
Published February 5, 2015Blog, Business Law Blog, Internet and E-Commerce BlogComments 0
Where do you find indemnity clauses? They are often contained in the “boilerplate” section of contracts, and are easily overlooked by people in a hurry to sign on the dotted line. If the contract includes an indemnity clause, be sure to discuss it with your attorney. It could potentially cost, or save, you a lot of money.
Published January 8, 2015Business Law Blog, Internet and E-Commerce Blog, Tax Law BlogComments 0
Finally, in a delicious irony (at least if you are an IRS agent), this approach will ultimately make the company’s financial situation much worse. When tax time comes, the corporation will only be able to deduct employee compensation that was reported as employee compensation. “Under the table” transfers are, by definition, not reportable for tax purposes. This will make the corporation will appear much more profitable than actually was, leading to a downward spiral of tax debt.
Published July 22, 2014Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, Tax Law BlogComments 0
Rather than peer hungrily at the data gathered by sites such as Facebook and Twitter, Google decided to create its own data gold mine—Google+. Unlike Facebook and Twitter, Google has complete access to the information on Google+ and is able to use that information to evaluate each website’s identity and reputation.
So…if you value your business’s search rankings on Google, better have a good Google+ presence!
Published July 17, 2014Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, Tax Law BlogComments 0
We are pleased to announce that Jonathan Watts has been selected to the 2014 California Rising Stars list. This is an exclusive list, recognizing no more than 2.5 percent of the lawyers in the state. Super Lawyers, a Thomson Reuters business, is a research-driven, peer influenced rating service of outstanding lawyers who have attained a […]
Published October 31, 2013Business Law Blog, Tax Law BlogComments 0
If you have control over the trust fund taxes and choose to divert them away from the IRS, you will be liable for the entire amount! This is true even if you are merely an employee who receives no financial benefit from diverting the trust fund taxes. Under the so-called “100% penalty,” anyone with authority over trust fund taxes who willfully (i.e., intentionally) diverts them from the IRS will be liable for the entire amount that he or she diverted.
Published November 2, 2012Business Law Blog, Internet and E-Commerce BlogComments 0
Published October 31, 2012Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, Tax Law BlogComments 0
If you own a C-Corp it is likely it will make sense to pay yourself the qualifying dividends from your company’s retained earnings. This will take advantage of the low 15% 2012 tax rate and avoid the astronomical 39.6% 2013 tax rate. Finally, you should review whether selling your investments that have unrealized gains before 12.31.2012 makes economic sense.
Deferring your expenses probably would be the wrong call to make. Itemized deductions seem to be on the chopping block, both by Romney, many Democratic plans as well as most states. The 2012 itemized deduction rule should be, if you see a deduction, take it!
Of course the election results will further hone the New Year’s trajectory. These are just a few tips on ways to stay informed and savvy in the meantime.
Published October 19, 2012Blog, Business Law Blog, Internet and E-Commerce BlogComments 0
The larger and more complex the files, the slower the downloading for your potential customer. Customers on mobile devices have seconds, not minutes, in which they’re trying to accomplish something. If your potential customer has reached the order window at their local Taco Bell and your site is still downloading chances are they’ll decide to redirect their search to another business.
Published October 17, 2012Business Law Blog, Internet and E-Commerce BlogComments 0
Google recently commissioned research firms Sterling Research and SmithGeiger to poll over 1000 adults on their opinions and thoughts on their mobile web experience. These statistics unearthed some enlightening data that further supports the mobile web’s wide open vista that has been largely untapped by small business owners.
Published August 28, 2012Blog, Business Law Blog, Internet and E-Commerce BlogComments 0
The takeaway message is that corporation or limited liability company can be an excellent way for a business owner to minimize his or her personal liability. But insurance is still a vital piece of the puzzle.
Published August 7, 2012Business Law Blog, Internet and E-Commerce Blog, meta data, UncategorizedComments 0
Perhaps Apple was drawn to the design patent because it’s less expensive to obtain, or design patents enjoy faster prosecution than their utility patent cousins and/or because US Customs will prevent importation of infringing goods with an exclusion order for the ITC. The proof required and the parameters that need to be met, when claiming infringement of a design patent, is whether an ordinary observer, who is familiar with both your product and the product you claim has been infringed upon, could tell the difference. If this ordinary observer is fooled, you’re likely to get your infringement claim upheld.
Published July 17, 2012Internet and E-Commerce Blog, Tax Law BlogComments 0
Have you looked at Amazon’s sales tax requirements page recently? If you haven’t, don’t! If you think I’m exaggerating you’ve obviously not attempted to ascertain whether your purchase from Amazon.com falls within their prescribed formula. A direct quote from their section titled “determining applicable sales tax” states, “The amount of tax charged on your order […]
U.S. Tax Judge Mark Holmes ruled against Joseph Mohamed, a successful entrepreneur, real estate developer and appraiser, and rejected his $18.5-million tax deduction. Mr. Mohamed donated several pieces of real estate toward a charitable remainder trust in tax years 2003 and 2004 and claimed $18.5 million in charitable deductions. Remainder trusts allow their owners to […]
Published June 21, 2012Internet and E-Commerce BlogComments 0
Many people—for good reason—fear using the internet. Who knows what the website is harvesting from the trail of data breadcrumbs that we leave behind? Will it come back to haunt us as unwanted spam or worse? California has attempted to address this problem and protect website users’ privacy by requiring each website owner to include […]
Published June 13, 2012Internet and E-Commerce BlogComments 0
It appears to be the unsettled Wild West when it comes to the fate of your Digital Soul when you die because there is practically no binding legal precedent established when it comes to how your digital data will be handled. The most recent Federal law concerning Digital media after you die is from 1986. […]
Published June 11, 2012Internet and E-Commerce BlogComments 0
Global Internet tax suggested by European network operators, who want Apple, Google, and other Web companies to pay to deliver content, is proposed for debate at a U.N. agency in December. To see the full article the link is http://news.cnet.com/8301-1009_3-57449375-83/u.n-could-tax-u.s.-based-web-sites-leaked-docs-show/. “The U.N. does not have the authority to impose a tax on its own authority. […]
Published April 10, 2012Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law BlogComments 0
Not quite. For your trust to work for you, you need to make sure that your trust actually owns your assets. Under California law, probate is generally required if a person dies holding an interest in real estate that does not pass automatically to a survivor such as a joint tenant. Probate is also required […]
Published March 25, 2012Business Law BlogComments 0
In a heartening display of collective sanity, the California legislature passed, and the governor signed, a highly sensible revision of the law regulating shareholder distributions by California corporations. By way of background, a shareholder distribution is simply a distribution of corporate funds to its shareholders in proportion to their wnership interests—i.e., a dividend. Along with […]
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