Free Enterprise - The FindLaw Small Business Law Blog

Recently in Taxes Category

Foxconn Hiring 3,000 Veterans in Exchange for Tax Credit

When running a business, keeping costs down and retaining good employees are two of life's major challenges. But what if you could do both at the same time?

Foxconn just announced its plans to launch a military veteran recruiting campaign with 20 stops across the country to help staff its new flat screen manufacturing facilities in Wisconsin. Its goal is to hire 3,000 veterans, and at a potential annual tax benefit of $9,600 per employee per year; that's nearly $29 million per year in tax credits, which are far more valuable than tax deductions.

Interested in these sorts of tax credits for your company? Here's some information on the Work Opportunity Tax Credit (WOTC) plan.

Marijuana Startups: What to Know About Tax Section 280E

When is the sum of the parts greater than the whole? When it's tax time in the cannabis industry.

By now, everyone understands that the federal government does not recognize the decriminalization of cannabis, regardless of state law. Marijuana must be included in any federal law that deals with Schedule I controlled substances. This is where tax section 280E comes into play. If you're i the marijuana startup biz, here's what you need to know about this tax section:

As old tax laws and court rulings struggle to catch up to e-commerce, some of the nice loopholes that benefitted online retailers are closing fast. One in particular -- that allowed retailers to avoid charging a state's sales tax if they didn't maintain a physical presence in that state -- was shut tight by the Supreme Court this week.

In a 5-4 decision, the Court admitted previous rulings on the issue of internet sales tax were "flawed," and can "create, rather than resolve market distortions." So, what does this reversal mean for your small business?

If you have employees, chances are you have to pay state unemployment insurance taxes. Exactly how much you'll pay will depend on where your business is located and how much you're paying your employees.

Penny pinching employers may be thinking they can reduce that tax burden by cutting back on their employees' hours, but does it necessarily work out that way? Here's a look.

Giving to charity might be among the last things a business person expects to land them in legal trouble. However, depending on how a business goes about making those charitable contributions, and eventual tax deductions, there could be serious legal consequences (including jail time).

For starters, not all charitable contributions are going to be deductible. While that shouldn't stop your business from contributing, you may want to think twice about to whom your business contributes. Also, when businesses offer incentives to employees, or inducements to customers, to donate, there are additional hurdles and considerations.

Here are three legal tips to help with your business's charitable giving.

A new report issued by the Treasury Department's Inspector General is calling into question the IRS's practice of seizing the bank accounts of small businesses suspected of laundering money. In essence, the IRS was seizing money with no evidence of criminal wrongdoing and refusing to return the money without getting a cut.

The report explains that, from 2012 to 2015, the IRS seized over $17 million dollars from small businesses for allegedly structuring bank deposits. In many of these cases, the business owners were completely innocent of any wrongdoing, but were faced with the choice of agreeing to a return of a lesser amount than was seized, or trying to fight it out in court to get their money back (which is a costly, and uncertain, process).

It’s getting to be that time of year when the country struggles with tax forms, tax returns, tax software, tax laws, tax people, tax bills, and everything else to do with taxes. For business owners, tax season is even more hectic as not only are individual returns due for owners, but they must get all their employee, and contractor, tax forms out, or face serious penalties.

Apart from having someone to lean on during the troubling, and taxing, times between New Years and mid-April, there are a quite a few benefits to spouses running a business together. The partnership loophole (a.k.a. electing out of partnership status) is one of the benefits and is likely the most regularly used avenue for married business partners to avoid filing the dreaded 1065.

Getting a business venture started or making a product via a crowdfunding project can be exciting. Seeing supporters, or backers, putting their money into your project can be uplifting. Just don’t forget about the IRS.

Many people who get funded often wonder whether the money received from crowdfunding is taxable. Despite the lack of specific guidance from the IRS, the answer is yes, crowdfunded monies are taxable income for the year that they are received, with limited exception. Fortunately, there are a few things that crowdfunding startups, individuals and businesses can do to maybe save a few bucks and avoid tax troubles.

Time is running out to get your tax filing in, but there's good news for all you procrastinators: We've rounded up all our best tax advice for small businesses to help make sure that filing is correct, and help you find any deductions or benefits you might've overlooked.

And if you've already filed and are already looking ahead to tax time next year, these articles can help prepare your startup or small biz for 2018's filing.

As individuals and small business owners prepare for tax season, it’s a good time to review some of those weird and wacky deductions that small business owners and professionals have tried to squeak in. From concealed weapons to petting zoos, what can be considered a deductible business expense is rightfully considered a rather large moving target, with some items being easier to hit than others.

What an individual or small business owner can deduct will generally depend on the nature of their business, and whether the expense is necessary and ordinary for the business. While a necessary expense is not required to be an essential expense, at the end of the day, deductions need to make sense.