Archives for Newsletter and Updates

There’s no doubt about it: Business has gone international. New electronic and logistical technologies have narrowed distance and time, and trade agreements have opened markets. And manufacturers are in a good position to venture into the business of exporting. Fluctuating currency-exchange rates and other challenges can make going global a challenge, but there are many benefits to consider, including: Boosting revenue. A larger market base and new demand from various niches can not only increase your sales, it can offer economies of scale, letting you get more from your resources. Expanding profits. Earnings can rise quickly if you are able
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Whether you’re thinking about starting your own business or investing in a start-up, there’s an exciting tax break that could sweeten the deal: Gains from selling qualified small business stock (QSBS) that you acquire on or after September 28, 2010, are potentially eligible for a 0% federal income tax rate. Thanks to the Protecting Americans from Tax Hikes (PATH) Act of 2015, the 0% rate on QSBS gains is now permanent. But you must own the QSBS for over five years and not all shares will qualify for the 0% rate. Here are some key points to help determine whether
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Today’s low-interest-rate environment makes it easy to loan money to family members on favorable terms with full IRS approval. Here’s a rundown of what the law covers and why now might be a good time to set up loans. Nothing in the tax law prevents you from making loans to family members (or unrelated people for that matter). However, unless you charge what the IRS considers an “adequate” interest rate, the so-called below-market loan rules come into play. For instance, let’s say you loan $50,000 interest-free to your daughter so she can buy her first home. Under the below-market loan
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Digital disruption is described as the changes that occur when new technologies and businesses models have a negative effect on existing goods and services. Despite some activity, many companies are lagging when it comes to transforming to take on the challenge. Technologies Taking Hold A recent example of digital disruption is Uber, the smartphone ride-hailing app. If you’re not familiar with the service, you push an icon on your smartphone to order a driver, and the app tells you when a car has accepted the job, when it will arrive and about how much it’s going to cost (generally less
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If you miss the deadline for rolling over an IRA distribution to another IRA or eligible retirement plan, you could be subject to taxes and penalties. If you have a valid excuse, you may be able to obtain a hardship waiver from the IRS, but applying is time-consuming and expensive. Fortunately, the IRS recently created a new self-certification procedure to make it easier to claim eligibility for a waiver. Here’s more information on who qualifies for the new procedure and how it works. New Self-Certification Procedure Taxpayers who miss the 60-day window for tax-free IRA rollovers can use the new
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Fall is a good time to pause and review your financial planning strategy. A lot can happen in a year. If your personal life, market conditions or tax laws have changed, you may need to revise your long-term financial plans. Here are some retirement and estate planning considerations that may be worthwhile. Roth IRAs Do you understand the key differences between traditional and Roth IRAs? Roth IRAs can be an effective retirement-saving tool for people who expect to be in a higher income tax bracket when they retire. Here’s how it typically works. You open up a Roth IRA and
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Do you own a company or are interested in starting a company selling products or services over the Internet? It is extremely important to understand the laws pertaining to the collection of sales taxes. If you run a business with a physical “bricks and mortar” store, collecting sales tax is relatively straightforward. You charge your customers the sales tax required by the jurisdiction where your business is located. For example, if you operate a retail store in Pittsburgh, Pennsylvania, you would collect both state and local sales taxes from customers buying merchandise at your store. But suppose you start selling
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The big advantage of Section 529 college savings plans is that withdrawals used to cover qualified higher education expenses are free from federal income tax (and usually state income taxes too). That part is very easy to understand, but the full story on withdrawals is not so simple. What are qualified expenses? What happens if you take out money for expenses that aren’t qualified? Here are five important facts that you should know about 529 plan withdrawals: Fact #1: You Have Two Basic Payment Options You can direct the plan to make a withdrawal check out in the name of
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Choosing the appropriate legal form for a business is one of the first issues most entrepreneurs face. It is an important decision at the formation stage and also as a business grows. Sole proprietorships are generally the easiest. Corporations offer some different advantages, but often with additional complexity. This article addresses some of the pros and cons of different types of legal structures for businesses. Even if your enterprise has been in existence for a while, it may be time to review your options. There can be many complexities in determining the best legal structure and a qualified attorney may be
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A shareholders agreement drafted for a privately held company details the rights and obligations of the shareholders. It not only provides guiding principles for running the business today, it lays out the ground rules of what to do if one of the shareholders dies, becomes disabled — or one party wants to dissolve the business. In other words, it can resolve issues in the future that you may not even anticipate now. Caution: There are online shareholders agreement templates that can be filled in. But there is no one-size-fits-all shareholders agreement that is applicable to all businesses. Your company is
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