The Limited Liability Company – Today’s Entity of Choice
There are many reasons why the limited liability company (“LLC”) has become the entity of choice for many business owners. Such reasons include limits on liability, favorable tax treatment, protection from creditors and its suitability for succession planning. OWNERSHIP OF COMMERCIAL REAL ESTATE In general, any liability stemming from a business operated within an LLC…
LLCs vs. S Corporations: The Battle Rages On
The LLC, or limited liability company, became popular in the U.S. about 22 years ago after the IRS decided to characterize an LLC as a “partnership” for tax purposes. Prior to that time, a great deal of uncertainty existed regarding the classification of entities. With the “check the box” entity-classification regulations, however, the IRS has…
Properly Structuring Business/Investment Entities Regarding Taxes, Liability Protection and Succession Planning
When choosing the proper type of legal entity when you are starting a new business, the choice of entity is very important. Not all entities enjoy the same protections and entities are certainly treated differently for income tax purposes. It is critical to have someone involved in this process who understands the tax as well…
Stock Buy-Sell Agreements
Typically for closely held companies and corporations as well as other types of business entities, the owners have a buy-sell agreement among themselves regarding the transfer of stock to other people outside the business. Such agreements also define the first-refusal mechanism the owners must use when one or more of the owners wants or needs…
Classifying Workers as Independent Contractors: An Employer’s Primer to Mitigating Risks
Every employer should be mindful of the Massachusetts independent contractor statute. The independent contractor statute establishes the framework for determining whether a worker is an employee or an independent contractor as a matter of law. Failure to meet the strict requirements of this statute may subject not only employers to significant financial and other risks,…
The Pass-Through Deductions: Five Misconceptions
The Tax Cut and Jobs Act was passed in late 2017, but most of the key provisions did not go into effect until 2018. Given that fact, the impact of the Act’s most significant parts is only now being fully realized as most individuals and businesses run up against their 2018 filing deadlines. One of…
What’s Next for Remote Sellers After Wayfair
The June 2018 Supreme Court decision in South Dakota v. Wayfair, Inc. repealed the sales tax “physical presence” standard required by Quill Corp. v. North Dakota. In doing so, the Supreme Court opened the door for states to impose a sales tax collection obligation on large and medium-size out-of-state retailers operating over the internet. In what is probably…
What Do You Mean “The Contract is Binding”?
With very few exceptions, any agreement for the purchase or sale of real estate in Massachusetts must be in writing to be enforceable. For decades, real estate agents, developers, sellers and buyers have used preprinted forms titled “Offer to Purchase” to set forth the essential but initial terms of the deal. The Offer to Purchase…
Hitting “Send” Can Bind You Don’t text and (unwittingly) make a deal!
Technology is advancing at a breakneck pace. Our use of email and text messaging has drastically altered the way we communicate with each other. This is true not just in our personal lives but in our professional lives as well. Remember when it took days or even weeks for communications pertaining to a real estate…
