June 14, 2017
When you form an LLC, you need to draft articles of organization that comply with the state’s LLC act and then file the articles with the appropriate state office. Typically, the required articles are broadly worded and likely don’t address members’ rights and responsibilities as you would like them addressed.
You should consider taking the extra step of having your lawyers create a written operating agreement. This agreement provides operational rules for running the business and can override or alter the default rules in your state’s LLC act to better meet your needs.
With the operating agreement, you
It’s also nice to know that you can deduct the legal fees incurred to create the operating agreement. The rules allow you to deduct up to $5,000 in organization costs immediately and then amortize the balance over 180 months.
With much of the focus on the new tax rates contained in the new tax bill for 2018, it is easy to forget that some big changes have been made to the allowable itemized deductions (Schedule A). The bill increases the standard deduction and removes the deduction for personal exemptions. This combined change will mean that many more filers will not itemize their deductions.
This probably sounds like a boring subject that only we bean counters would care about, but don’t ignore this important topic. If your partnership experiences an ownership change, it might apply to you.
A technical termination occurs when 50% or more of the total ownership interest in a partnership’s capital and profits changes during a 12-month period. This could be an...
With a definitive uptick in hacking and ransomware, there has been a corresponding emphasis on cybersecurity. It is no longer simply a matter of arguing over erroneous credit card charges – personal data is being used to file fraudulent tax returns, claim social security benefits, and the like. Here at LBF, we want to make sure you are doing everything you can to protect your personal...