Tax

5 Legal Issues to Focus on for Reducing Taxes and Unlocking Value

Focus your business on these five legal issues to reduce your tax burden and unlock value.

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Partnership & LLC Equity: Capital Interests & Profits Interests

Partnership and LLC interests consist of capital and profits interests. The uses and tax impact of the two is quite different.

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Allocating Gains and Losses Built into LLC and Partnership Property

When a partner joins a partnership or limited liability company in exchange for a contribution of property, special tax rules control the allocation of any gains or losses built into the property.

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How an S Corporation can Save you Money on Taxes

By electing to have your business taxed as a subchapter S Corporation—commonly called an S Corp—you could save up to 15.3% on your tax bill. The election is available whether your business is a traditional subchapter C Corporation, or a limited liability company. The tax savings from the election come from how each dollar of business income is taxed. Under subchapter C taxation, a corporation pays tax on its own income. Out of what’s left,…

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Employment Issues in Mergers and Acquisitions

This is a presentation given to the Columbus chapter of the American Payroll Association. It starts off with a basic discussion of common mergers and acquisitions deal structures. Then it gets into the employment issues that tend to come up in the M&A context, and looks at some ideas for preventing or solving them.

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Procedure Matters

Fairness and efficiency matter. They’re core concepts in our legal system. For the average person, fairness and efficiency are the yardsticks used to measure all judicial outcomes. So it’s quite easy for us to overlook the importance of procedure. But procedure matters. A lot.

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What’s the Basis?

Basis is the tax value of property in the hands of a taxpayer. When selling property, the difference between basis and sale price is the taxable gain or loss. Generally, basis is what you paid for the property. If you bought Google stock on the market at $600, it has a $600 tax basis. If you sell the stock for $700, you will recognize $100 of taxable gain. If you sell for $400, you will…

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Nuts & Bolts: How to Start a New Company, Part 3

Economic rights are at the core of every business. In an LLC, economic rights are established by the operating agreement. The operating agreement should also include important tax-allocation provisions.

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What is an LLC?

Limited liability companies are powerful yet complex business entities. They can take on nearly any organizational form. And they can select their preferred method of taxation.

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