June 26, 2017

When you form an LLC, you need to draft articles of organization that comply with the state’s LLC act and then file the articles with the appropriate state office.

Typically, the required articles are broadly worded and likely don’t address members’ rights and responsibilities as you would like them addressed.

I suggest that you consider the extra step of having your lawyers create a written operating agreement....

June 19, 2017

Because you report your business income and expenses on Form 1040, Schedule C, you have a unique tax-planning possibility when you are replacing your old business vehicle and

  • your taxable self-employment income (Schedule C income) is $137,727 or less;

  • you are using actual expenses (not the mileage rate) to deduct the replacement vehicle; and

  • the outright sale of your old business vehicle would resu...

June 19, 2017

When a business provides an employee or a partner with a smartphone or similar telecommunications equipment primarily for non-compensatory business reasons, the following great things happen:

  • The employee’s or partner’s business use is a working condition fringe benefit that is excludable from income.

  • The employee’s or partner’s personal use is excludable from income as a de minimis fringe benefit.

  • ...

June 12, 2017

When you buy a business, you probably don’t want the former owners competing with you—at least not for a while. To prevent the competition, you will likely enter into a non-compete agreement with the former owners. The agreement has tax implications that you need to consider.

As the buyer, you or your business entity must amortize amounts allocated to non-compete agreements over 15 years, even though the term of...

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