Employee fraud and misconduct are risks to all businesses. It is often difficult for companies to acknowledge the reality of these risks, but, according to the most recent Report to the Nations published by the Association of Certified Fraud Examiners, it is estimated that companies lose 5% of their annual revenues to fraud. When fraud…
Garrett T. Senney has a PhD in Economics from The Ohio State University and works for the Office of the Comptroller of the Currency (OCC) in Washington, DC. Dr. Senney has graciously given us permission to publish his article below regarding banking a marijuana business. The views and opinions expressed below are those of the…
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…
As part of its ongoing security review, the Internal Revenue Service announced today (IR-2019-58) that starting May 13th, only individuals with tax identification numbers may request an Employer Identification Number (EIN) as the “responsible party” on the application. An “EIN” is a nine-digit tax identification number assigned to sole proprietors, corporations, partnerships, estates, trusts, employee…
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…
On January 25, 2019, in SuperShuttle DFW, Inc., 367 NLRB No. 75 (2019) (“SuperShuttle”), the National Labor Relations Board (“NLRB”) affirmed the common law test for determining whether workers are independent contractors under the National Labor Relations Act (“NLRA”). Section 2(3) of the NLRA excludes independent contractors from protections under the Act such as the…
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…
Have an “S” Corporation? Want to acquire a corporation and treat it as a subsidiary? Want to avoid double taxation on the acquired corporation’s income? Consider making a Qsub election. An “S” corporation can acquire and own the stock of a “C” corporation. But having an “S” corporation own a “C” corporation may not make…
When an ownership interest in a partnership (or LLC taxed as a partnership) is transferred to a member in exchange for services, the tax consequences of such transfer are governed by partnership tax law. Ownership interests in partnerships can be profits interest, capital interests or both. Partnership tax law is quite complex, and there is…