Of Interest
THE FAMILY LIMITED PARTNERSHIP: PROTECTING FOR THE “2026 SNAPBACK”
Not to mention the estate planning benefits along the way! THE PERFECT TIME TO IMPLEMENT YOUR STRATEGY IS NOW! For those unfamiliar with family limited partnerships (“FLP”), in short, it is an entity in which typically the older generation funds with cash, investments, brokerage accounts, publicly-traded stocks, real estate assets, and just about any other property to implement, principally, two strategies: first, to take full advantage of the sunsetting provision of the estate tax th...
BUSINESS WITHOUT A “NON-COMPETITION” AGREEMENT?
NON-COMPETES LIKELY TO BE GONE WITH THE WIND? THIS CAN ROCK YOUR BUSINESS WORLD! Recently, the Federal Trade Commission (“FTC”) proposed a new federal rule which would ban the use of non-compete clauses by employers and would apply to not only employees but also independent contractors. So what exactly would the rule cover? According to the FTC, the proposed rule would make it specifically illegal for an employer to: Enter into or attempt to enter into a non-compete...
Contract Disputes and Liquidated Damages Provisions – Be Careful – The Safeguard You Expect to Protect You Can Backfire!
Are you party to a commercial construction contract or … for that matter, any contract with a liquidated damages provision? If so, a recent court decision gathers attention in other courts and can lead you to unknown surprises – making you regret how you viewed the standard “liquidated damages provision.” Well, what are “liquidated damages anyway”? The purpose of a liquidated damages provision in a contract is to establish – ahead of time – the compensation that would be owed...
Risks to Avoid When Raising Investment Dollars
Raising dollars for your business venture? Be wary – the government has rules on almost every kind of business/enterprise fundraising. If you aren’t careful, your investors can sue to get their money back based upon your not following proper procedures. The easiest way to avoid burdensome securities regulation is to forego securities altogether and instead treat investments as loans; however, this is often unrealistic. Because the definition of “security” is so broad, your inve...
Short Term Rentals – Owner Beware and Owner “Be-Smart”
The short term rental (STR) industry has taken off in the past couple of years and has generally been resilient in the face of economic struggles. Government regulation of this ever-growing industry has generally focused on zoning and tax issues, without seeming to fully address situations related to liability. One of the biggest problems arising out of this area is how to treat the relationship between owner and renter, as how that relationship is treated directly determines any liability the ...
TELECOMMUTING EMPLOYEES AND THE TICKING TAX-BOMB DEVELOP A POLICY THAT MANDATES WHERE WORK IS TO BE CONDUCTED AND MANDATE THAT GOOD RECORDS BE KEPT (PART 1 OF 2 PARTS)
Note: This article focuses only on the employee – a subsequent article will focus on tax and liability issues imposed on the employer Background. Because the pandemic has forced many more workers to telecommute compared to what we have seen in the past, there could likely be significant tax implications that you may not be considering. Generally, a state and even a locality (city/county) expects employment taxes if work is done within the state where the employment generally occurs (�...
IS REAL ESTATE STILL IN YOUR NAME? YOU ARE EXPOSED!
Owning property is a cornerstone of the American dream, but if it is deeded in your name, you might be opening yourself up to more risk than reward! Cost-cutting and risk avoidance are crucial to a company's success – especially small businesses. Here at Weiss LLP, we have found that transferring one's title to a property, owned in his or her sole name, into a limited liability company (LLC) offers such protection. Benefits to doing so range from avoiding payment of certain taxes otherwise ap...
COURT FIRES WARNING VOLLEY AT FINANCIAL SERVICES BUSINESSES THAT USE AFFILIATED TITLE COMPANIES IN REAL ESTATE SETTLEMENTS
The United States District Court in Maryland has recently ruled that a lender who uses an internal title company for its real estate settlements is on the hook for the title company’s alleged violations of the Sherman Antitrust Act. This ruling could spell bad news for financial services businesses that use owned or affiliated subsidiaries in their real estate settlements, as it indicates that courts may be willing to look bey...
A Changing Landscape: How Tax Reform Has Modified the 1031 Exchange Process
Are you selling a piece of real property and looking for a way to defer the capital gains taxes owed on your investment? Due to the recent 2018 tax reform and the resulting changes made to Section 1031 of the tax code, new issues have arisen that smart sellers and buyers must take into account before deciding that a “1031 Exchange” is wise decision. To put it simply, a 1031 Exchange allows an investor to “defer” paying capital gains taxes on a property when it is sold, as long another �...
Virginia Legislature Enacts Law to Protect Consumer Privacy: Big Consequences for Business Owners
Does your business deal with a consumer’s personal data? Does your business interact with Virginia residents? If so, your business operations could be greatly affected by a new law aimed at protecting consumer privacy. Set to take effect January 1, 2023, the Virginia Consumer Data Protection Act (“VCDPA”) will grant Virginia residents the rights to access, correct, delete, know, and opt-out of the sale and processing for targeted advertising purposes of their personal information. It will...