Investing in startup and growth-stage businesses has generally been limited to accredited investors. Accredited investors are individuals with annual compensation of at least $200,000 for the last two years or a net worth of at least $1,000,000 (not counting personal residence). Startups solicited accredited investors primarily because they could offer and sell securities to accredited…
The Ohio Senate unanimously recently passed Senate Bill 8. If enacted, this Bill would create a 10% Ohio income tax credit for Opportunity Fund investments. The maximum amount of such credits permitted under this Bill in the initial two-year period would be $50 Million, with a per applicant max of $1 million. Taxpayers would apply…
Senate Bill 57, a bill decriminalizing industrial hemp cultivation and permitting possession of CBD oil derived from hemp was unanimously passed by the Senate on March 28 and moves now to the House for consideration. Hemp and marijuana are related, but actually two different plants. Hemp contains a very low level of tetrahydrocannabinol, (THC) the…
The recently enacted Tax Cuts and Jobs Act (“TCJA”) introduced two tax saving opportunities. One option permits a taxpayer to defer gain from the sale of property that is reinvested in an investment in a Qualified Opportunity Fund (“QO Fund”). The second option permits the taxpayer to permanently exclude gain from the sale or exchange of the taxpayer’s…
Ohio Moves Forward with Licensing for Home Inspectors On January 4, 2019, Governor John Kasich signed into law Ohio’s New Home Inspection Act. Efforts to regulate home inspections, and require licensure for Ohio Home Inspectors has been ongoing for several years, but no legislation ever had enough support to pass until this year. It will…
One of the most important provisions in a contract is the liability insurance provision. For the most part, the business owner relies on an insurance agent to advise what coverage is needed for a particular contractual obligation. The business owner then sets forth the insurance requirement in the contract/lease and states that the other side…
Business owners who are looking for ways to avoid probate and transfer their business ownership interests and effectively might want to consider making their limited liability company membership interests transferrable on death. While this procedure is not the right move in every situation, in some cases it is an appropriate way to handle the transfer…
When a shareholder joins or leaves an S corporation during the year, it can cause many problems. Among these problems is the question of how to allocate income for tax purposes. The IRS has issued Treasury Regulations to clarify how to deal with some of these situations. The S corporation’s structure is simple. There is…