On February 9, 2022, California Governor Gavin Newsom signed Senate Bill 113 into law. SB 113 changes several provisions of California’s tax laws that affect family businesses and offer valuable tax planning opportunities that business owners may wish to take advantage of. Specifically, SB 113 reinstates the business tax credits and net operating loss (“NOL”) […]
Tax Issues to Consider When Forming a California LLC
Last week’s post discussed some important tax issues entrepreneurs should be aware of when forming and operating California partnerships. As we discussed, one of the most important factors to consider when forming a new enterprise is whether the business is initially expected to generate profits or losses and the tax consequences of those profits and […]
Tips for Preparing Your Business for Tax Season Next Year
Now that you’ve completed and filed your business taxes for 2015, the last thing you might want to think about is preparing your business for tax season next year. However, now is a great time to plan ahead so that next spring is not only smooth but an opportunity for a larger financial benefit than […]
Tax Treatment of Equity Compensation
Federal and state tax codes can take a big bite out of your company’s equity compensation. That’s why founders, executives, and employees of start-ups should understand the role that Internal Revenue Code Section 83 plays in the tax treatment of equity compensation that is given in exchange for services. Most startups use equity incentives instead of cash, at […]
Tax Issues to Consider When Forming a California Partnership
Previous posts have discussed the many factors entrepreneurs should consider when forming and organizing a new business enterprise. One of those factors is whether the business is initially expected to generate profits or losses and the tax consequences of those profits and losses on the founders and other investors. The tax consequences of the profits […]