by Matthew Burgess on November 29, 2012
This update comes directly from Thor Eakes, CPA and partner at Murrill Eakes & Company in San Diego.
On November 6th, taxpayers voted for a tax increase retroactive to January 1, 2012. The following rate increases are effective for seven years:
Increase to 10.3% (1% increase) for individuals making over $250,000 and married filing joint filers making over $500,000.
Increase to 11.3% (2% increase) for individuals making over $300,000 and married filing joint filers making over $600,000.
Increase to 12.3% (3% increase) for individuals making over $500,000 and married filing joint filers making over $1,000,000.
Proposition 30 also increased the state sales tax by .25% for four years beginning January 1, 2013.
The income tax rates below the income amounts above is 9.3%.
This is a very steep increase for high income taxpayers in California and will negatively impact their decision for making a living in California.
Contact Thor Eakes or your CPA if you have questions.
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by Matthew Burgess on August 17, 2011
Our friends at the accounting firm of gishSeiden have brought this to our attention:
We want to remind you that the State of California may be holding property or money belonging to you. The California State Controller’s office has received unclaimed property belonging to over 13 million individuals and companies. This includes bank accounts, stocks, bonds, uncashed checks, and safe deposit box contents. Most accounts are turned over to the State when there is no owner contact with the institution or account for 3 years. Often the owner forgets the account exists or moves and does not leave a forwarding address. [click to continue…]
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by Matthew Burgess on April 4, 2011
This is no April Fool’s Joke. Some security experts are saying this may be the biggest security breach ever.
On April 1, Epsilon, an online marketing unit of Alliance Data Systems Corp., announced that an outside intrusion had hacked into many of its customer files. In a brief statement, Epsilon says it detected a breach on March 30 during which “clients’ customer data were exposed by an unauthorized entry into Epsilon’s e-mail system.” [click to continue…]
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by Matthew Burgess on March 16, 2011
The friendly and incredibly knowledgeable experts at Robert Hall & Associates are offering a complimentary seminar on the ins and outs of 1031 Exchanges and Self-Directed IRAs as vehicles for wealth building and retirement planning.
When: Tuesday, March 22, 2011
Check-in/Networking: 6:30pm – 7:00pm
Seminar: 7:00pm – 8:30pm
Where: 300 West Glenoaks Blvd. Suite 300, Glendale, CA 91202
RSVP: By Monday, March 21st to: jennifer@roberthalltaxes.com
Anthony Watson, tax preparer, lecturer, and real estate expert from Robert Hall, will discuss the tax benefits of these two strategies. Then they’ve brought in speakers from two companies that specialize: Exchange Resources, Inc. will discuss how 1031 exchanges work, and how you can gain greater cash flow from your investment property. and IRA Services Trust Company will discuss ways to build, protect and grow retirement wealth through self-directed investing.
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by Matthew Burgess on March 8, 2011
If you’re wanting to dissolve a California business entity, such as a limited liability company or corporation, you may want to do that right away.
If the entity is dissolved before March 15, and if it has not conducted business in this calendar year, the $800 annual minimum franchise tax for 2011 will not be due, in most circumstances. If you wait until after the 15th, you’ll very likely have to pay $800 for the year.
We can file your Certificate of Cancellation/Dissolution at the counter in Sacramento in the next few days and get you in under the deadline. Begin the process of dissolution by filling out the appropriate form here.
It may take the California Secretary of State’s office weeks or months to process the dissolution paperwork, but the dissolution will be effective on the day they received the filing. This is why you cannot mail it in: you must file it with a courier service, at the counter for hand date-stamping.
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by Matthew Burgess on March 2, 2011
by admin on December 19, 2010
As the end of the year approaches, one very important question is on the minds of many our clients:
Should we dissolve our unused corporation or LLC, or face another year of taxes?
The end of a relationship can involve a mixture of emotions – pain, happiness, relief. The ending of a business is much the same especially when your business is often one of the most intimate relationships in your life. [click to continue…]
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by admin on December 18, 2010
Nothing feels worse than paying more than you have to because of your own actions. With all things you manage to drive your business, it can be challenging to keep track of legalities that may seem fairly boring or unimportant by comparison.
The only problem – they aren’t so unimportant.
Forgetting important filings and renewals can cost you a lot in late fees and penalties. The first step is maintaining a list of the things you need to track.
1. Statement of Information. California requires every corporation and LLC to file a Statement of Information with the Secretary of State. For-profit corporations need to file annually based on your date of formation while LLCs and non-profits can file biennially. You’ll only part with $25 if you get your Statement in on time. Once your company becomes delinquent, expect a hefty $250 penalty fee to get everything straightened out. Most other states have a similar filing requirement. [click to continue…]
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by Matthew Burgess on December 18, 2010
Tax concerns are usually at the top of the list when it comes to selecting an operating structure. Here’s a quick overview of a few tax benefits for the most common business entities:
A Sole Proprietorship is the default structure if you’re operating on your own and haven’t officially registered your business as a corporation, LLC (Limited Liability Company), or Non-profit. A sole proprietorship is NOT a legal business entity: you pay personal income tax on your earnings (as well as self-employment tax), can subtract some expenses as itemized business deductions on your tax return, and you’re personally liable for all of the debts the business incurs.
Why it might be a good idea
- You’re only taxed once on your earnings from the business
- There’s no need to file a separate tax return for the business
- Net losses can be “carried” to prior or later tax years to offset tax liability
- Hidden tax perks, like healthcare reimbursement arrangements and provisions for hiring family members abound
A traditional Partnership is also a “pass through” business entity, and is sometimes seen as the default structure when multiple parties run a business without forming an official entity (like an LLC or corporation). Just like a sole proprietorship, capital gains and income are taxed to the business owners, typically at a higher rate than they would be for some other business structures.
Why it might be a good idea: [click to continue…]
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In early December of 2010, one could file new Articles of Incorporation or Organization at the counter in Sacramento, and expect about a six day turnaround. And just like last year at this time, processing times have recently extended considerably.
