Recent Articles

Partnerships

How are partnerships formed? What are the characteristics that justify this entity status over others?

Tenancy in Partnership

09/10/2017

Black’s Law Dictionary defines tenancy as the right to possess or occupy land.   It goes further to state: “The possession of real or personal property by right or title, especially under a conveying instrument such as a deed or [...]

Business Barriers

09/03/2017

No business is instantaneously successful.   There are multiple obstacles referred to as barriers all owners and managers have to overcome.   There are three primary groups of barriers for every business out there.   They include capital [...]

Bookkeeping – Charitable Giving (Lesson 64)

07/09/2017

Many small business owners are actively involved in the community and thus donate time and money to their favorite cause.   In almost every case the owner believes the donation is a business deduction.     It is NOT a business deduction for tax [...]

Bookkeeping – Tracking Income Taxes (Lesson 58)

06/17/2017

It is important for the bookkeeper to track income taxes for the business and the owners.  Tracking includes apprising management of current status and pending obligations.  In addition, the bookkeeper must make sure the payments are made to the [...]

Double Taxation – Not an Issue in Small Business

02/08/2017

In the world of big business corporate earnings are taxed twice under the Internal Revenue Code.   The first layer of taxation occurs with the traditional corporate income tax.   The second tier of taxation happens when dividends are issued to [...]

Joint Venture

01/08/2017

The average person may not realize this, but the most notable joint venture in existence today is the National Football League.   It figuratively owns every Sunday in the fall of each year.  It is an association of 32 clubs agreeing to compete [...]

Forms of Business Ownership

01/04/2017

When an entrepreneur starts out on his long journey of building a legacy with his business; he almost immediately focuses on the legal status of his business.   His thoughts include:  ‘Should I become a limited liability company or an [...]

Aggregate and Entity Theories of Partnership

12/28/2016

A partnership is defined as an association of two or more persons to carry on as co-owners a business for profit.  The premise is built around the notion that the combined power of the partners exceeds the sum of the value the partners [...]

Economic Substance Principle

12/26/2016

The Internal Revenue Service uses an economic substance test to identify sham transactions that exist solely to reduce or eliminate taxes.    In addition,  the courts use this same doctrine to rule on the legitimacy of activity between two or [...]

Business Trusts

12/21/2016

The common law definition of a business is an investment of capital or property by individuals which creates the means to carry on towards the goal of generating a profit.   Every state recognizes different legal formats to conduct business.   [...]
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