California’s SB 113 May Offer Valuable Tax Planning Opportunities for Family Businesses

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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”) …Read more

Tax Issues to Consider When Forming a California LLC

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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 …Read more

Tax Treatment of Equity Compensation

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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 …Read more

Tax Issues to Consider When Forming a California Partnership

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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 …Read more

What Taxes to Pay First

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When your cash flow is inadequate to pay all your business taxes, which ones should you pay first? Your business is faced with a number of different types of taxes and government fees (which certainly feel like taxes). Some of the types that could apply to your business are personal property taxes on your equipment …Read more