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Tax Considerations in Choosing the Form of Business Entity 04/11/2014

Posted by Morse, Barnes-Brown Pendleton in Attorney News, New Resources, Taxation.
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Corporate and Tax Attorney Charles Wry, Jr. By: Chip Wry

Founders of a new business typically realize early on that they need to conduct the business through a legal entity to limit their personal liabilities for the debts and obligations the business generates. Often, the three entity types from which the founders must choose are the “C” corporation, the “S” corporation and the limited liability company (or “LLC”). While all three entity types insulate the founders from personal liability, the differences among the three types for tax purposes are substantial. A C corporation, on the one hand, reports and pays tax on its income separately from its owners. The income or loss of an S corporation or LLC, on the other hand, generally is reported by the owners on their personal returns. The choice, therefore, is often tax-driven and requires an analysis of how the founders expect to grow and profit from the business.

View the full article to learn more.

January 31st, 2014 Deadline for Information Reporting with Respect to Exercised Incentive Stock Options 01/17/2014

Posted by Morse, Barnes-Brown Pendleton in Client News, Taxation.
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Action May Be Required

Corporations, both publicly and privately held, that transferred stock in 2013 pursuant to the exercise of incentive stock options (ISOs) are required to report the transfer to both the IRS and the exercising person.

Form 3921 Exercise of an Incentive Stock option Under Section 422(b) is used for both purposes. Form 3921 requires the corporation to furnish certain information regarding the exercise, including the fair market value of the share of stock on the date the ISO was exercised. Corporations must furnish Form 3921 to the exercising person on or before January 31, 2104 and to the IRS on or before February 28, 2014 (March 31, 2014, if forms are filed electronically). In general, failure to furnish statements in a timely manner, failure to include all required information or the inclusion of incorrect information will result in the imposition of penalties.

Transfers of stock under an employee stock purchase plan (ESPP) are also subject to similar reporting requirements.

Morse, Barnes-Brown & Pendleton would be pleased to assist you in understanding and complying with these ISO and ESPP reporting obligations. Please feel free to contact Robert Finkel or Diana Española with any questions or call 781-622-5930.

 

To ensure compliance with U.S. Treasury Regulations governing tax practice, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

MBBP Attorneys Help Demystify LLCs in MCLE Program 03/23/2012

Posted by Morse, Barnes-Brown Pendleton in Attorney News, Events, Legal Developments, Taxation.
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Tax and Business Attorney Diana EspañolaOn March 22nd, MBBP Attorneys Diana Española and Chip Wry sat as faculty for MCLE In-House ProgramLLCs Demystified“. The program focused on the fundamentals of LLCs highlighting business and tax issues frequently presented by such entities. Diana and Chip helped to debate the pros and cons of LLCs and corporations, discussed basic tax and business issues presented by LLCs, identified specific advantages and disadvantages of LLCs, reported on common Corporate and Tax Attorney Charles Wry, Jr. mistakes and traps for the unwary in forming and advising LLCs, and provided practical drafting tips.

The MCLE has created an audio CD of the program and will also be rebroadcasting it as a webcast on April 19th.

For more information on LLC formation, please contact Diana Española or Chip Wry.

Take Advantage of Expiring Tax Provisions to Encourage Business Investments 12/15/2011

Posted by Morse, Barnes-Brown Pendleton in Attorney News, Legal Developments.
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MBBP has released a new Tax Alert which covers the topic of tax provisions contained in the Small Business Jobs Act of 2010 and the Tax Relief Act of 2010. These provisions are intended to encourage investments in and by businesses, but action is required before December 31st. Please see our full Alert to learn more.

For more information on the expiring tax provisions, please contact our tax attorneys Robert Finkel, Diana Espanola, Chip Wry or Don Parker.

If you would like to be added to our Tax Alert mailing list, please contact Jaclyn Jefgood.

Robert Finkel to Speak in CLE Webinar on Entity Selection Tax Issues 12/01/2010

Posted by Morse, Barnes-Brown Pendleton in Attorney News, Events.
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Tax and Business Attorney Robert FinkelOn December 14, MBBP  attorney Robert Finkel will speak as part of a panel in a CLE/CPE Webinar on “Advanced Tax Issues in Entity Selection”. The webinar will provide tax counsel with an advanced analysis of legal and financial aspects of business entity structuring, including tax issues related to capital structure and compensation. The panel will also discuss the impact of new and proposed legislation on tax rates and entity selection.

This webinar will occur Tuesday, December 14th from 1:00-2:30pm EST. For more information or to register, please visit Strafford Publications.

Robert’s other recent speaking engagements include “Disclosures of Off Shore Financial Interests after the 2009 Voluntary Disclosure Program” at the annual Salem State University CLE for Accountants, and the 2010 University of Massachusetts Tax School for Pratitioners Workshop.

Tax FAQs for US Inbound Transactions 11/29/2010

Posted by Morse, Barnes-Brown Pendleton in Attorney News.
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Tax and Business Attorney Robert FinkelMBBP attorneys Robert Finkel and Diana Española recently wrote an article titled “Tax FAQs for US Inbound Transactions” which provides information on the options foreign businesses have for structuring their US operations including:

  • export tangible product into the US
  • license intangibles into the US
  • send a service provider to the US from time to time
  • establish a branch office in the US
  • form a subsidiary in the US
  • partner in a US joint venture

Please visit our Taxation Resources page to read the full article.

Tax and Business Attorney Diana EspañolaRobert and Diana have also developed a tax alert that discusses “Revise Non-Qualified Deferred Compensation Arrangements to Avoid Section 409A Penalties for Non-Compliance

To read more about it, please see our our taxation resources page.

Robert Finkel Named to 2010 Boston’s Best Lawyers List 07/06/2010

Posted by Morse, Barnes-Brown Pendleton in Client News.
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Every year, Best Lawyers, a peer-review publication for the legal industry, compiles a list of outstanding attorneys selected by surveys completed by their professional peers. In the most recent, 16th edition of the Best Lawyers lists, MBBP attorney Robert Finkel has been named one of 2010′s Boston’s Best Lawyers in the Tax Law category.

Congratulations Robert!

For more information on tax law, please contact Robert Finkel.

Robert Finkel Featured as Panelist for BBA Tax Seminar 05/21/2010

Posted by Morse, Barnes-Brown Pendleton in Attorney News, Events.
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On May 20,  Attorney Robert Finkel presented at a Boston Bar Association (BBA) seminar entitled “Fundamentals of Partnership Taxation“. The program presented a summary of the key tax issues surrounding the formation, operation and termination of partnerships and entities taxed as partnerships, including limited liability companies. The three hour program was attended by over 30 corporate and tax lawyers. Robert Finkel is an Adjunct Professor at the Boston University School of Law Graduate Tax Program.

For more information on taxation, please contact Robert Finkel.

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