Dear Clients and Friends: The California Limited Liability Company (LLC) fee based on gross California receipts could be costing your company thousands of extra dollars each year. A California LLC paid the following fees based on California gross receipts (this fee is in addition to the $800 yearly minimum tax): Gross Receipts: Equal to or over – But not over – The fee is: $ 250,000 $ 499,999 $ 900 500,000 999,999 2,500 1,000,000 4,999,999 6,000 5,000,000 And over 11,790 In many cases choosing an LLC as a form of doing business is a great choice, LLC’s grant
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Employee Stock Ownership Plans
Dear Clients and Friends: Employee stock ownership plans (ESOPs) are gaining popularity as a vehicle to motivate employees while providing tax benefits to the company and an exit strategy for its shareholders. An ESOP is a qualified defined contribution plan that invests primarily in employer securities. An ESOP gives employees the opportunity to share in productivity through appreciation of the employer stock held in their accounts, and so encourage job performance. An ESOP offers differing benefits to both S corporation and C corporation companies and their shareholders. S corporation benefits: An S corporation can transfer corporate stock to an ESOP
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