In today’s competitive job market, giving gifts and other fringe benefits to employees can be an effective way for employers to show appreciation. But generous employers should understand that most gifts and bonuses—even small ones—have tax implications. Employee gifts must be taxed and included on year-end tax forms unless they qualify as de minimis benefits, are presented as achievement awards, …
Business owners typically dislike dealing with the tax reporting, filing, and payment requirements associated with running a business. It can be tedious and require attention to numerous details. For businesses that have made payments to vendors and independent contractors, the type of tax reporting required and the form it should take are often overlooked and confusing. Specifically, it requires understanding …
Limited liability companies (LLCs) are one of the most popular types of business entities. The LLC’s flexible taxation options are one reason it is preferred; LLC members can, for the most part, choose how they would like to be taxed. The LLC enjoys this flexibility because the Internal Revenue Service (IRS) does not recognize it as a distinct entity for …
Many small business owners contend with collecting, reporting, and paying sales tax. Although there is currently no federal sales tax, 45 states, and many localities, as well as the District of Columbia, have a sales tax. Different taxing authorities have their own regulations, tax rates, exemptions, and deadlines, which can be quite confusing, especially for entrepreneurs who have just started …
If you are considering expanding your physical business or starting a home-based business, selling your products online is a great way to reach additional customers. Before you begin to sell products online, there are several legal issues you should be aware of to ensure that your business is compliant with the law and that your interests are protected. Business entity. …
Entrepreneurship has been called the new American dream. Hanging a shingle starts with an idea that develops into a business plan, but not without careful financial and legal considerations. Among the decisions that new business owners grapple with is whether to form a limited liability company taxed as a partnership (LLC) or a corporation making an S election (S corp).* …
You might have heard of a corporation or organization being referred to as a “501(c)(5)”. This reference refers to a specific Section in the Internal Revenue Code (“IRC”) and means it is a not for profit labor, agricultural, or horticultural organization recognized by the Internal Revenue Service (“IRS”). It will be exempt form federal income taxes. To qualify for 501(c)(5) …
I gave a presentation last Thursday at Lawline on Farm Leases. My powerpoint presentation can be viewed below. It discusses: (1) general considerations with farm leases, (2) active vs. passive income (and why it matters!), (3) types of farm leases, (4) lease provisions, (5) price/rent negotiation, and (6) a few other types of leases used on farming operations. [slideshare …
Last month, I moderated an equine law CLE webinar for the American Bar Association (“ABA”) General Practice, Solo & Small Firm Division’s Agriculture Law Committee titled “Common Equine Contracts: What They Are, Pitfalls to Avoid, and Ideas for Effective Drafting.” The renown faculty included Attorneys Avery Chapman, Julie Fershtman, and Thomas Nicholl. The live webinar was on December 9, 2014; …
I will be moderating this upcoming CLE for the American Bar Association (“ABA”) General Practice, Solo & Small Firm Division’s Agriculture Law Committee on December 9th on Common Equine Contracts. I’m super excited to have equine law attorneys Julie Fershtman, Thomas Nicholl, and Avery Chapman on board to present on this very useful topic. We will be discussing the following …
Those who are just beginning a farm operation or food business, those who work off-farm or those who are slowly withdrawing from farming would do well to familiarize themselves with the Internal Revenue Code § 183, “Activities Not Engaged in for Profit,” occasionally referred to as “The Horse Shelter” or “Hobby Loss Rules.” IRC § 183 is designed to prevent …
Something must be in the air – I have a lot of friends having babies! Having a baby and becoming a parent for the first time is exciting, but also very scary. There are many legal implications of having a baby and/or expanding your family. Here are my top 10 tips to make sure that you take legal steps …