Small Business Tax Round-Up: Incentives, Compliance and Legal Updates

Taxes have a significant effect on the financial health of your business. The business choices you make affect the taxes you pay. Here’s some great advice from lawyers on JD Supra to guide you in the process.

Small Business Jobs Act of 2010 – Key Tax Incentive Provisions (Morrison & Foerster LLP)

A complete list of tax incentives for small businesses resulting from the Jobs Act, and categorized according to the aspect of business they are intended to affect. “However, because many of the Act’s provisions are (i) temporary changes to the federal tax rules and (ii) aimed at certain taxpayers, many people may find this Act to be of limited use.” Read more »

Tax Relief Act Has Small Business Investment Incentive (Sanford Millar)

“IRC §1202 has been amended to provide that an investor who invests in a “C” corporation…can exclude 100% of its capital gains if the investment is held for at least 5 years and the investment is in a ‘qualified small business’. The term “qualified small business” means a business which is not a ‘personal service business’ (example: medical practice, talent loan out company, accounting firm).” Read more »

Small Business Jobs Act of 2010 Provides Targeted Tax Incentives for Businesses (Manatt, Phelps & Phillips, LLP)

“Many of these tax incentives have relatively short life spans, while others are intended to become permanent. The following is a brief overview of the tax incentives in the Act that are relevant to many business owners.” Read more »

Small Business Jobs Act Offers Tax Incentives (Dinsmore & Shohl LLP)

A quick referral source: one-page summary of the key tax incentives in the Jobs Act. Read more »

Deadline Extended Until Dec. 2011 for 100 Percent Exclusions on Gains Made in Qualified Small Business Stock (Fox Rothschild)

“[The] Unemployment Insurance Reauthorization and Job Creation Act of 2010, signed into law on Dec. 18, 2010, contains a provision providing a 100 percent exemption for gains made on the sale or exchange of qualified small business stock acquired between Sept. 27, 2010, and Dec 31, 2011…The gains exclusion was to revert to 50 percent as of Jan. 1, 2011, but the Tax Relief Act provision supersedes, and the temporary 100 percent exclusion is now available for another calendar year.” Read more »

Extension of 100% Gain Exclusion for Qualified Small Business Stock (Sheppard Mullin Richter & Hampton LLP)

An itemized list of requirements to qualify stock for the 100% exclusion. Read more »

Tax Court Decision Subjects LLP Service Providers/Equity Partners to Self-Employment Tax (Morgan Lewis)

“[T]he court determined that the LLP partners could not avail themselves of the exemption from SECA for nonguaranteed service payments to ‘limited partners.’ This ruling illustrates the potential risk for service provider limited partners and limited liability company members of assuming that state law entity and limited liability classifications alone shield them from being subject to SECA tax. Read more »

Impact Of Health Care Reform On Individual and Small Business Taxes (Ford & Harrison LLP)

“In addition to significantly changing our health care and health-care delivery systems, and imposing new requirements upon employers and insurers alike, the newly-enacted health care reform laws contain a number of provisions that directly affect individuals by changing their tax situations, or by imposing additional tax liabilities.” Read more »

Incorporating Your Start-Up Business (Stephen Minnich)

A guide to help you understand the tax effects of choosing your business entity (C Corp, S Cirp, LLC„ etc). “[T]his article will help you understand the basics of organizing a new business entity.” Read more »