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.

HK® Bobby Pen & The Pen Pals® FE8A5C COMPRESSED All LLC Are Not Created Equal

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.

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