The 2025 Tax Act – Key Business Tax Provisions

One key change for business taxpayers under the 2025 Tax Act concerns the tax treatment of “domestic research or experimental expenditures” (often also referred to as “U.S. R&D” costs). Also, the 2025 Tax Act permanently enacts into law the provision from the Tax Cuts and Jobs Act of 2017 that created the “qualified business income” deduction – generally allowing a 20% deduction with respect to the “qualified business income” from partnerships, S corporations, and sole proprietorships.

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All Operating Agreements Are Not Created Equal

It has been stated that the limited liability company has become more popular than the corporation as the basic form of entity to do business in the United States. A critical document with any limited liability company is the operating agreement. When an operating agreement for a limited liability company fails to fully cover the six key issues described here in accordance with the understandings of the limited liability company’s members and managers and applicable law, such operating agreement is a poorly-drafted, inadequate operating agreement.

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President Trump’s “Gold Card” Immigration Proposal – Does it Provide a Viable Path to Obtain a Green Card?

President Trump announced a new immigration proposal – what he referred to as a “gold card”. The “gold card” green card program would potentially replace the existing EB-5 immigration program. Although it has been reported that the Trump administration may be considering combining the “gold card” green card proposal with the EB-5 investment program in some manner.

The Continuing Saga of “BOIR/FinCEN” Reporting

With the Supreme Court’s decision to stay the “Texas Top Cop Shop December 3” injunction, the Supreme Court’s decision only related to the nationwide injunction issued in the Texas Top Cop Shop case; it did not at all relate to the nationwide injunction issued in the Smith case. As a result, as of January 24, 2025, the general advice remained that reporting companies that had not yet made filings with FinCEN to comply with the BOIR requirement of the CTA should hold off on doing so.

Trump’s Tax Proposals

President-elect Trump has proposed various new specific exemptions from income tax liability. First, he would exempt tips from income tax liability. Second, he would exempt overtime pay from income tax liability. Third, he would exempt Social Security benefits from income tax liability. There is no guarantee that some or any of President-elect Trump’s tax proposals will be enacted into law.

How to Avoid FinCEN Reporting

There are two types of reporting companies – “domestic reporting companies” and “foreign reporting companies.” It is important to remember that reporting companies that were formed or registered to do business in the United States on or before December 31, 2023 are required to comply with applicable “FinCEN” reporting by January 1, 2025 and reporting companies that were formed or registered to do business in the United States during 2024 are required to comply with applicable “FinCEN” reporting within 90 calendar days after receiving notice of such formation or registration.

Connelly v. United States – An Important Supreme Court Estate Tax Valuation Case

“Buy sell” agreements often are funded by life insurance policies. Life insurance proceeds can affect the “estate tax” valuation of a deceased business owner’s ownership interest. And can have material implications for the terms of “buy-sell” agreements, business valuations, and other estate tax liability and estate planning issues.

SUCCESSION IN DISABILITY SITUATIONS

Succession is an important issue in estate planning. Usually, succession is discussed in terms of an asset owner’s or business owner’s death. Who should succeed me as owner and manager of my assets or business on my death? A less often discussed, but also significant, issue is succession in disability situations.

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WHY ILLINOIS BUSINESSES SHOULD CONSIDER NOT USING ILLINOIS ENTITIES

Simplicity can be advantageous in making decisions concerning your business. On the important decision of choice of entity, based on simplicity, it may seem appropriate to use an Illinois entity to operate an Illinois business. By using an entity formed in a different state than Illinois to operate an Illinois entity, there will be additional complexity from having to comply with the legal requirements of Illinois and another state. However, for some Illinois businesses, this complexity may be overridden by certain benefits from using non-Illinois entities.

The Advantages Of Protected Series Over Registered Series In Delaware Series Limited Liability Companies

For many years, Delaware has been a leading state in which to achieve asset protection. Besides its broad recognition of tenancy by entirety and “pro-debtor” charging order law, Delaware was one of the first states to authorize the use of series limited liability companies.

Green Card Qualification Issues

Immigrant obtaining a Green card involves one negative cost – United States taxation. United States green card holders are subject to United States income taxation on their worldwide income. This can expose United States green card holders to double taxation if any of this income is also subject to taxation in their native country or another foreign country.

The Truth About Private Investments For Wealthy People

USA President Franklin D. Roosevelt’s New Deal created the Securities and Exchange commission as part of the 1933 Act. It was designed to prevent business people from raising capital from the general public. Under the guise of consumer protection, the regulation made it illegal for entrepreneurs to advertise the offering of new shares in a company. Except to wealthy insiders—called accredited investors. The regulation relied upon a four-part test called ‘Howey’ to define which offers are considered securities.