It’s a common scenario. A client or non-tax attorney says:
“We’ve put together a new LLC/partnership agreement. It should be fine because we’ve used this same agreement on all of our deals. We just changed the distributions a little.”
That sounds simple enough. But in practice, this approach almost always creates tax issues—sometimes obvious, sometimes
Always forgetting to file your Texas Franchise Tax Reports on time? Starting in 2024, you might find yourself exempt from this task. The Texas legislature passed significant changes to the franchise tax reporting requirements in 2023, streamlining how businesses handle their tax reporting and reducing the administrative burden, particularly for small to medium-sized businesses.Continue Reading Texas Franchise Tax Update: Key Exemptions and Reporting Changes for Businesses
Thinking about investing in a young, promising company? Section 1202 of the tax code offers a significant incentive for individuals to do just that.
What is Section 1202?
Section 1202 is a tax provision enacted in 1993 to encourage long-term investment in smaller startup companies. The aim of Section 1202 is to permit non-corporate shareholders to exclude from gross income 100% of the gain from a sale or exchange of “qualified small business stock” (“QSBS”) acquired after September 27, 2010 and held for more than five years. There is a cap on the exclusion amount available to a shareholder, which is the greater of $10 million of recognized gain, or ten times the adjusted basis of the QSBS per qualifying corporation.Continue Reading An Overview of Section 1202 Qualified Small Business Stock