Many business owners are sitting on a powerful federal tax opportunity without realizing it: Qualified Small Business Stock (QSBS) under IRC §1202. In the right fact pattern, eligible QSBS may allow exclusion of up to 100% of gain, depending on acquisition date, holding period, and satisfaction of §1202 requirements. That means a properly structured company...
Sales & use tax problems rarely come from not knowing the rules — they come from misapplying them under pressure. Nexus, resale certificates, drop shipments, manufacturing exemptions, SaaS sourcing… each one seems manageable on its own, but real‑world fact patterns stack these issues together. Miss one detail or fail to reach a clean conclusion, and...Continue reading
If your business produces, imports, or distributes alcohol or tobacco, Form 5000.24 isn’t optional—it’s critical. This TTB excise tax return is how federal excise taxes are reported and paid, often on a semi‑monthly or quarterly basis. Errors or missed filings can quickly trigger penalties, interest, and compliance problems—especially for importers and bonded operations. The John...Continue reading
Recently, we assisted a multi-entity corporation with operations in 25 states and two subsidiaries reduce its state tax liability to less than 100% of its net federal income. By conducting a thorough nexus and apportionment analysis, optimizing entity structure, and leveraging state-specific deductions and filing strategies, we minimized exposure in high-tax jurisdictions while ensuring full...
With the United States’ global leadership in finance, pharmaceuticals, and technology, it is a preferred place to do business, making entry into the US market very appealing. When considering doing business in the US, either by opening operations or through e-commerce, non-resident aliens or foreign corporations need to consider potential tax obligations. US tax law...Continue reading
To comply with state sales tax laws, a company must collect and pay sales tax if it has a “sufficient” physical or economic presence, known as Nexus. Failure to do so results in penalties, including the unpaid sales tax, interest, and additional fines. Nexus can be either physical or economic. Physical Nexus is established through...Continue reading
If you own a corporation, you can withdraw cash and gain a tax deduction by renting a portion of your home to the corporation for office space or storage, without incurring payroll tax. To do this, the office or storage space must be physically separate from the home and used exclusively for the corporation, such...Continue reading
The tax code mandates that employee-owners of closely held corporations, whether “C” or “S” corporations, must pay themselves a salary termed as Reasonable Compensation. For “C” corporations, which are taxed at the company level, employee-owners can receive compensation through a mix of salary and dividends. However, dividends are not deductible by the corporation and are...Continue reading