Taxes – Page 3 – AmeriLawyer – Incorporate, Trademark & Asset Protection

Raising Minimum Wages May Also Mean Overtime For Managers

April 6, 2016 Spiegel & Utrera, P.A.

A recent mandate by President Obama has raised the minimum wage for federal employees to $10.11, encouraging states to also raise their minimum wage and spurring debate in Congress to raise the private sector’s federal minimum wage. To small business owners in the private sector, the possible rise in employee minimum wage is a concern as businesses struggle to balance added costs and profit margins. However, talks on amending employee compensation have not ended at hourly minimum wage alone.

As part of the labor discussion, President Obama has also proposed that the U.S. Department of Labor consider raising the salary floor for overtime eligibility. Currently, salaried employees are exempt from overtime compensation if they earn at least $455 dollars per week or $23,660 per year. With a raised floor, a larger number of salaried employees with a higher wage would also be eligible for overtime. As small business owners face these possible new changes, many considering different strategies to help cover costs, including hiring fewer employees or shifting salaried employees to hourly wages. Upon release of their recommendations for the changed policies, the U.S. Department of Labor will open the floor for public comment.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills, Trusts, Agreements & Leases, Corporate & Company

Tax Law Has US Citizens Second Guessing US Citizenship

April 5, 2016 Spiegel & Utrera, P.A.

The Foreign Account Tax Compliance Act or FACTCA is a law that is causing many U.S. Citizens to renounce their citizenship. FATCA requires the reporting of foreign accounts or assets by U.S. citizens and residents. IRS Form 8938 is used to report these assets. The effort and time to do this reporting as well as the potential cost are causing some U.S. citizens and residents to renounce their citizenship or forfeit their green cards. In addition foreign banks and other entities must now report the assets of Americans living outside the United States. There are some exceptions to FATCA.

According to the IRS, “Taxpayers with a total value of specified foreign financial assets below a certain threshold do not have to file IRS Form 8938

If the total value is at or below $50,000 at the end of the tax year, there is no reporting requirement for the year, unless the total value was more than $75,000 at any time during the tax year
The threshold is higher for individuals who live outside the United States
Thresholds are different for married and single taxpayers
Taxpayers who do not have to file an income tax return for the tax year do not have to file IRS Form 8938, regardless of the value of their specified foreign financial assets.”

Americans have been renouncing citizenship in record numbers in order to avoid large tax bills.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have tax questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

The “Taxing” Consequences Of Identity Theft

March 29, 2016 Spiegel & Utrera, P.A.

It’s the most wonderful time of the year, TAX SEASON! That time of the year when thoughts of new cars and tropical vacations dance through your head. The ways to spend your refund are endless and irresponsible, but you desire a reward. With your W2s and receipts you race to your tax advisor, to hear how much Uncle Sam owes you. Suddenly shock sets in as your tax advisor informs you that your tax return was already filed and your refund collected. You stand irate and demand an explanation.

Your tax advisor adjusts his bifocals to explain that tax-related identity theft occurs when someone steals your Social Security number (“SSN”), files a tax return and fraudulently collects your refund. The theft of your SSN may go unnoticed until you attempt to file your tax return, a collection action is commenced against you for a year you did not file a tax return, you receive a letter from the Internal Revenue Service (IRS) informing you of suspicious return using your SSN or the letter indicates you received wages from an employer you never worked for. But by then the thief has absconded with your refund and is enjoying your tropical vacation, leaving you wondering what to do.

What you need to do next

If your SSN is stolen and identity jeopardized, you should file a complaint with the Federal Trade Commission (“FTC”), and contact your financial institutions to close any accounts compromised by identity thieves. Additionally, immediately respond to any IRS notices, complete IRS Form 14039, Identity Theft Affidavit, and if your electronic tax return is rejected due to duplicate filing under your SSN, file your return by paper and submit it to the IRS. Also, continue to pay your taxes, because while having your identity stolen may be stressful, the consequence of the IRS are taxing!

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about identity theft, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Microloans To Raise Money For Your Business

March 24, 2016 Spiegel & Utrera, P.A.

Microloans are loans that are usually under $50,000. Microloans can usually be obtained with more ease and in less time than a traditional loan. The U.S. Small Business Administration has a microloan program that lists eligibility requirements as well as the repayment terms, interests rates, and fees. The SBA provides that:

“Use of Microloans Proceeds Microloans can be used for:
Working Capital
Inventory or Supplies
Furniture or Fixtures
Machinery or Equipment

Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate.”

The microloan program operates with intermediary lenders being provided the money for microloans by the SBA, The intermediary lender decides the lending and credit requirements.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about microloans, call (800) 734-9900 orclubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Is This The Right Time To Start A Business?

March 8, 2016 Spiegel & Utrera, P.A.

With the 2016 presidential election right around the corner and the race to become the most powerful leader in the world, it is no surprise that the subject of “small business” is starting to pop up more and more in the campaign trails and televised debates. Every candidate, whether a Democrat or Republican, has a different strategy when it comes to startups leading to entrepreneurs wondering if this is the right time to start a business. We’ve heard many ask if it’d be best to wait after we elect a new president. The answer is always NOW! We want to help you understand the ins and outs of starting a business and to succeed as an entrepreneur.

Many entrepreneurs rush in and launch their business without the proper advice and without thinking it through. To begin, seek the advice of a professional, attorney and accountant, and ask yourself a few questions:

Who will you sell to? Who is your market share? The more narrowly you are able to define your target market, the better. Whether it’s teenagers, elderly, midsized businesses, hotels, narrowing the scope helps you focus to their specific needs. You will need to do some market research to discover the most profitable target market for your services or products.
Who is your competition? Have your friends close, and your competition even closer. When you conduct the market research, it will reveal your competition. Who are they, what are they offering, and what you can do better. What are their key advantages and selling points, what can you offer that is better or different to meet the customers’ needs?
Where will you be located? Many businesses today are virtual; they have a telephone, fax, scanner and that is it. But location, depending on the business, may affect your startup costs drastically if it has to be a brick and mortar business. Do you need to rent a commercial business location or could you get by in a small space or working from a home office?
How much will it costs to get started? How much capital do you need to start this business? Be sure to include incorporation costs, costs of location costs of inventory, equipment, taxes and employees. A good rule of thumb is to have enough to finance your business for 6 to 18 months.
Who will do the work? Do you need to hire staff? If so, that adds to the expenses. How much of the work can be done by you and your loved ones? Many times clients start as a one man show. As demand for your products or services increases, so would you need to evaluate manpower. Take a look at the situation on a day-to-day basis.

Taking all these things into consideration can help you start your business or your second business. Always do your homework, but do not delay in taking the plunge; if you do not risk you will not reap the rewards!

Check out our Radio Show for valuable insight from a seasoned entrepreneur on How to Start a Business.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about starting or running a business, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

“Heart Act” Helps Reservists Meet Their Daily Needs

March 3, 2016 Spiegel & Utrera, P.A.

The US Senate Finance Committee recently approved a series of tax credit extensions, including a 2-year extension that assists small businesses, military reservists, and National Guard members called to active duty. Originally enacted as part of the Heroes Earnings Assistance and Relief Tax Act of 2008 (The Heart Act), the provision provides a tax credit of 20% to small employers with under 50 employees. The 20% is calculated from the differential amount that an employer would pay while the employee is on active duty. For example, if a reservist gets paid $2,000 per month from their employer, but only $1000 per month while on active duty, an employer would get a tax credit on $1,000 (or $2000) that the employer would pay to maintain the $2,000 per month salary.

The credit incentives small businesses to continue paying their employee’s salary, therefore ensuring that reservists, the men and women in the National Guard, and their families, are able to meet their daily needs.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about Tax Credits, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Has YOUR Attorney Reviewed The Commercial Lease Agreement?

February 23, 2016 Spiegel & Utrera, P.A.

Before you enter into a Commercial Lease Agreement there are important considerations to be made as to why it should be reviewed by your Attorney.

1. The Landlord: Leases are usually drafted by the Landlord or their attorney and , therefore, typically the terms are favorable to and beneficial for the Landlord.

2. Lease Size: Leases tend to be so voluminous and dense from the tenant’s point of view. The Landlord is unlikely to take a careful review of the lease document to assure it reflects your lease and the terms you agreed to. Additionally, due to the volume of the Lease and the use of legalese sometimes you as the Tenant are not certain as to what you are signing. For example, a personal guaranty provision – which eliminates any protection your corporate entity or limited liability company might provide against someone suing your business and attaching your personal assets – is often buried deep in a lease agreement or in the exhibits and most times Tenants do not realize they have a signed one. Your attorney will carefully review the lease documents and sift through all the legalese.

3. Protection from competition. Your attorney will likely make a point of reviewing your Lease agreement to be certain that your Lease prohibits the Landlord from renting to your direct competition.

These three points only scratch the surface!

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about Commercial Lease Agreement, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Taxing Severance Pay

February 15, 2016 Spiegel & Utrera, P.A.

Many employers have typically interpreted their FICA (Federal Insurance Contributions Act) obligations (i.e., Social Security and Medicare) to extend to severance pay based on the IRS treating severance pay as wages, but that may change. Employers making severance payments may be entitled to a refund if the employers withheld FICA.

This year, the U.S. Supreme Court will hear a case regarding whether severance payments should or should not be subject to FICA. In the pending case, the lower court ordered that the IRS give a full refund of $1,000,125 to the employer. The lower court found that payments the employer made to employees who were involuntarily terminated due to business cessation were considered supplement unemployment compensation benefits (SUB payments) that are not taxable wages under FICA.

A ruling in favor of the employer would lower costs for employers. Employers would no longer be required to make FICA contributions on severance payments. Additionally, employers may be entitled to a refund on previous severance payments. Accordingly, employers should consider filing protective refund claims so that they can keep the statute of limitations on refund claims open pending review of the above mentioned case by the U.S. Supreme Court. Employees may also file claims for refunds.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about Taxing Severance Pay or Filing Protective Refund Claims, call (800) 734-9900 orclubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you withIncorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills, Trusts, Agreements & Leases, Corporate & Company Changes.

Asset Protection With A Limited Liability Company

February 10, 2016 Spiegel & Utrera, P.A.

There are several factors that have to be considered before organizing a Limited Liability Company (LLC) that can protect assets from the reach of creditors in a legal dispute. Some of the factors to be considered in making this baseline determination should include:

The legitimate business purpose of the LLC
The number of owners in the LLC and how the LLC may need to be divided or funded among those owners
The taxation of the LLC
The ongoing costs of the LLC
The history of use of a LLC for the particular purpose it’s being considered for, including case law

Assuming these all support the LLC as a good fit for the usage at hand as opposed to some other legal structure such as a corporation, trust, or partnership, you must look at some other specific factors to determine how many LLCs an individual may need. Contrary to popular belief, you don’t always need a separate LLC for every piece of real estate. Similarly, an LLC is not a universal fit for every situation or every asset. It should not be funded like a garbage can, where multiple properties, businesses, and even safe passive assets are mixed into a cocktail of liability. This is a common fatal flaw seen in asset protection plans that are structured without assistance of an experienced attorney.

It is critical for business owners to seek preventive legal counseling to carefully consider creation of asset protection plans before legal disputes have arisen so that LLCs can be properly used as one of the tools to protect assets.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about Asset Protection, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

What Type Of Business Entity Will You Form

January 28, 2016 Spiegel & Utrera, P.A.

Of all the choices you make when starting a business, one of the most important is the type of legal structure you select for your company. Not only will this decision have an impact on how much you pay in taxes, it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money. With so many choices of type of formation such as a C Corporation, S Corporation, LLC, General and Limited Partnerships (LP), it is important for entrepreneurs to evaluate the following main criteria:

Legal Liability – to what extent do you need to be insulated from legal liability?
Taxes – what are the opportunities to minimize taxation based on your situation?
Cost of Formation and Administration – State filing fees and record-keeping vary from state to state and type of entity.
Flexibility – a maximize the flexibility of the ownership structure by considering the unique needs of the business.
Future Needs – you must plan for uncertainties such as disability or selling your business.

These are only the primary criteria for most business owners, your personal and business situation may have to involve the analysis of more criteria in selecting the appropriate business entity. The advice of a trained corporate lawyer should not be ignored when making such a decision.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have any questions about what type of business entity you should form, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Posts categoriezed as Taxes