NCP Members


There are three general categories that determine the capital account for each member of an LLC. It is based on the fair market value of what is contributed (cash, other personal property, real property or services). Anything other than cash may create a taxable event to the member making such contribution. Such events should therefore be reviewed by your tax advisor before such capitalization is fulfilled.

For instance, a 50-50 ownership where one member contributes $50,000, in either 1) services; 2) property which has appreciated so that liability relief exceeds the existing basis, ie $250,000 fair market value with $200,000 Read the rest…

Why is it critical to know about controlled groups? Because if you have more than one C-corporation it will affect the outcome of your taxes! In other words you may have thought you could form two corporations and pay less tax and that may not be the case. A controlled group is only allowed one set of graduated income tax brackets. Are there benefits to being a controlled group? That depends on what you are trying to accomplish. Most individuals ideally would like to have separate corporations and get separate tax brackets.

For example: You have one Nevada corporation that does Read the rest…

The Employee Retirement Income Security Act of 1974, P.L. 93-406, 88 Stat. 829, codified at 29 U.S.C. §§ 1001-1461, applies to employee benefit plans if they are established or maintained by an employer engaged in commerce or in any industry affecting commerce. 29 U.S.C. § lO03(a). However, certain plans do not come under the ERISA umbrella. These include governmental plans; church plans; plans maintained solely for the purpose of complying with applicable worker’s compensation, unemployment or disability insurance laws; plans maintained outside the United States primarily for the benefit of nonresident aliens; or excess benefit plans. 29 U.S.C. § lO03(b). Read the rest…

DELAWARE

NEXUS YES NO

ACTIVITIES FOR CREATING INCOME TAX NEXUS

Part Year Nexus Taxed for Full Year X
Solicitation of Sales of Services (e.g., Architecture). X
For a Lessor, Occasional Use by Lessee of Rental Assets X
For a Lessor, Occasional Use by Lessee of Rented Mobile Property. X
Occasional Business Meetings at Customer’s Location in State. X
Arranging Third-Party Installation or Maintenance of Tangible Personal Property Sold to In-State Customers. X
Occasional Training Classes/Seminars For Customer Personnel. X
Attendance at Trade Shows (fewer than 14 days per year). X
Licensing Trademark/Trade Name. X
Occasional In-State Delivery via Company-Owned Truck Read the rest…

DISTRICT OF COLUMBIA

NEXUS YES NO

ACTIVITIES FOR CREATING INCOME TAX NEXUS

Part Year Nexus Taxed for Full Year X
Solicitation of Sales of Services (e.g., Architecture). X
For a Lessor, Occasional Use by Lessee of Rental Assets X
For a Lessor, Occasional Use by Lessee of Rented Mobile Property. X
Occasional Business Meetings at Customer’s Location in State. X
Arranging Third-Party Installation or Maintenance of Tangible Personal Property Sold to In-State Customers. X
Occasional Training Classes/Seminars For Customer Personnel. X
Attendance at Trade Shows (fewer than 14 days per year). X
Licensing Trademark/Trade Name. X
Occasional In-State Delivery via Read the rest…