Decisions, Decisions: Choice of Entity vs. Choice of Tax Classification
Before forming any entity, founders need to make two fundamental decisions: which entity type is best for their business operations and which tax classification is best for the owners. Although the entity type and tax classification can be changed after formation, some forethought before forming a business can reduce expenses, taxes, and headaches. Choice of…
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What Florida Sales Tax Cut Means for Florida Commercial Tenants
Broadly speaking, according to the Florida Department of Revenue, each Florida sale, amusement park admission, storage unit and rental is taxable (unless it falls under an exemption, such as nonprofits). More specifically, sales tax is imposed on the rental of real property. As stated explicitly in the Florida Statutes, any business or person that rents,…
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Title Insurance or Not, Don’t Dismiss the Value of Title Search
For those of you who question whether an owner’s policy of title insurance is a waste of money, please remember that examining title is still an essential component of due diligence investigations. Real estate investments are usually significant transactions, whether for individuals or businesses. If you are focused on protecting your financial interests, a careful…
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Maximizing QSBS Benefits with Estate Planning: The Art of Stacking
The number of taxpayers seeking the benefits of Qualified Small Business Stock (“QSBS”) has picked up steam in recent years, particularly since the Tax Cuts and Jobs Act (“TCJA”) lowered the federal corporate tax rates to 21%. The combined effect of lower corporate tax rates together with the benefits of QSBS have made corporations attractive,…
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Adverse Possession in a Closely Held Company? ‘Stash’ This One Away
Imagine for a moment that you’re a shareholder in a closely held corporation. In most jurisdictions, that status as a shareholder obligates you to a heightened fiduciary duty to your fellow shareholders. Now imagine that your closely held corporation is in the real estate business, and one of your fellow shareholders sues the corporation for…
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The Heat Is On SEC’s Climate-Related Disclosure Rules
On March 6, 2024, the U.S. Securities and Exchange Commission (the “SEC”) adopted new final rules requiring issuers to include extensive disclosure in registration statements and periodic reports regarding material climate-related risks and impacts on their business strategy, financial condition and results of operations.[1] The release promulgating the final rule, which is 885 pages long,…
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Short-Term Rental Proposal is Latest Threat to Airbnb/Vrbo Business Model
In many states, the tide appears to be turning against short-term rentals. With restrictions on short-term rentals, such as Airbnb and Vrbo, on the rise, businesses operating short-term rental properties are running out of options. Such restrictions are not unheard of in larger vacation hot spots such as Miami or Nashville, seemingly with the goal…
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Cross-Border M&A Opportunities Favor the Prepared
Cross-border mergers and acquisitions (“M&A”) unlock growth, diversification, and a stronger global stance for businesses. These strategic moves enable firms from different nations to blend resources, making way into new markets, tapping into unique technologies, enhancing products, and realizing economies of scale and scope. Despite uncertainties from economic, regulatory, and geopolitical developments, the outlook for…
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Ready for More Corporate Transparency? Understanding the NY LLCTA
Despite the fact that its constitutionality is currently in legal limbo, the federal Corporate Transparency Act has already had an impact rippling through a number of business sectors, thanks in no small part to the wave of state-level ownership disclosure laws it has inspired. One of the more significant of these emerging state laws is…
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Lessons From the License to Drive (and Protect) Sports Illustrated
For years, Sports Illustrated (SI) has provided exclusive, in-depth looks into some of sports’ greatest games and players, with its voice and visuals providing great entertainment and information for sports fans around the world. As an example, a signed 1975 SI cover of Muhammed Ali and Joe Frazier is one of my most prized pieces…
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