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Business Law & Business Litigation: Choosing a Business Entity: Basics for Business Owners

By David Beliveau People usually establish business entities to protect their personal assets from the risks of operating a business. There are several types of business entities available, and each has its own set of pros and cons. The types of business entities include sole proprietorship, partnership, Limited Liability Company (LLC), Limited Liability Partnership (LLP), Internal Revenue Code (IRC) subchapter C corporation, and IRC subchapter S corporation. The choice of business entity has both nontax and

IRS delays basis reporting for bonds and options

The IRS is giving brokers extra time to start reporting the basis in debt instruments and options. This requirement had been scheduled to go into effect on January 1, 2013, but brokers and other involved parties complained to the IRS that this did not give them enough time to build and test the systems required to meet this obligation. The IRS has extended the deadline to January 1, 2014. This reporting requirement was the third phase

IRS announces 2013 HSA limits

Health Savings Accounts (HSAs) allow taxpayers with high-deductible health insurance to set aside tax-deductible dollars that can be used tax-free to pay unreimbursed medical expenses. If you have an HSA, you’ll be able to contribute more in 2013, thanks to the inflation-adjusted limit recently announced by the IRS. The amount you can set aside in 2013 will increase to $3,250 for an individual and to $6,450 for a family. If you’re 55 or older, you’re allowed

IRS eases reporting requirement on health coverage

The Affordable Care Act of 2010 included a provision requiring employers to report the cost of coverage under an employer-sponsored group health plan on the employee’s 2012 W-2. However, employers issuing fewer than 250 W-2s will not need to include the cost of health care on W-2s for 2012. For these employers, the 2012 reporting is optional. And such reporting will not apply for future calendar years until the IRS publishes further guidance.

December deadline for tax-exempt organizations

Here’s an important reminder for small nonprofit organizations: If your organization had its tax-exempt status revoked for failing to file an annual return from 2007 through 2009, the IRS is giving you a chance to get reinstated. The IRS has issued guidance for small organizations with gross annual receipts of less than $50,000 that will allow them to regain tax-exempt status retroactive to the date of revocation. To qualify for this reinstatement and a reduced application

Check your tax situation before year-end

December 31, 2012, will be a very important date in the lives of taxpayers, because that is the date that many tax-saving provisions are set to expire. Congress has extended many of these provisions on a year-by-year basis. However, as it stands now, many tax-cutting provisions have already expired or will expire. Here are a few of the more important ones that could apply to you. Employee’s share of social security taxes. The employee’s share of

Make sure you can access your power of attorney documents

It’s important to have access to the originals of your power of attorney documents, because a photocopy sometimes won’t be accepted. Sometimes an attorney keeps the originals, and sometimes the client keeps them. Both are good ideas. But either way, make sure you can access them when you need them. If you keep them yourself, put them in a safe place. And if your attorney keeps them, be sure you leave enough time to obtain them

Deceased man’s sister is sued for interfering with inheritance

When Marc MacGinnis was in the hospital awaiting surgery, he asked his friend Brent to prepare a will for him that would leave half of his estate to Brent and half to Marc’s sister, Susan. Brent downloaded some will forms from the Internet, but Susan then suggested that she contact a lawyer to set up a trust instead. She said this would be better because it would avoid probate. Susan never talked to a lawyer, and

Should a will include children conceived after a parent’s death?

What’s the legal status of a child who was conceived after a parent’s death? That question would have been ridiculous not many years ago, but with advances in fertility treatments and the ability to freeze embryos and store sperm for later use, a number of children are now being conceived after one biological parent has passed away. This has created a number of legal issues. For instance, the Supreme Court recently decided whether twins who were

Prepare now – new 3.8% tax on investment income takes effect in 2013

A new 3.8% tax on investment income will take effect in 2013, and anyone who has significant investments or who manages a trust should be planning for it now. The tax was included in President Obama’s health care law. In the past, many people didn’t plan for the tax because they thought the law might be struck down by the Supreme Court. But now that the Supreme Court has upheld the law, the tax will take

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