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Under the U.S. tax laws, partnership income and expenses flow through to each partner in a partnership, at a partnership’s tax year-end. Generally, the tax year of a partnership must conform to the tax years of its partners. In some situations, however, a partner, or multiple partners, and the partnership itself may have different tax […]
Corporations that make valid election to be taxed under Subchapter S (“S corporation”) are treated as pass-through entities. This means that the S corporation’s gains, losses, income and expenses are passed onto shareholders who will pay the applicable federal income taxes; the S corporation itself does not pay any taxes (as opposed to a regular […]
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) was singed into law on December 17, 2010. One of the most important tax provisions in the Act deals with the alternative minimum (“AMT”) tax patch. Under the Act, the AMT exemption amounts for the tax year 2010 will be $72,450 […]
Member Control Agreement can be the most important governance document in the process of the LLC Formation because it may provide the LLC members with maximum governance flexibility, including overruling some provisions of the Minnesota Limited Liability Company Act. In fact, a Member Control Agreement may completely reorganize the governance structure of an LLC away […]
Pursuant to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”), which was singed into law on December 17, 2010, the tax cuts on capital gains and qualified dividends have been extended through the tax year 2012. Generally, long-term capital gains of individuals will be taxed at a maximum rate […]