Tag Archives: Corporate

LLC Partnership Tax Changes

  Question Presented: What should LLCs do in preparation of the new IRS partnership tax audit and assessment rules? Short Answer As of December 31, 2017, the IRS will require all entities taxed as partnerships to pay for imputed taxes on partners for prior tax years at the partnership level. Most LLCs elect to be treated…
Read more

Valuing Employee Equity

As business lawyers, we frequently get questions from our clients about types of equity incentives and valuing equity: Can an employee have options granted at $0.01? Can we give “free” stock to a new executive? The short answer is that yes, a company can do either of those things.  However, because of often-overlooked tax consequences, your new executive or employee is…
Read more

Time to Give Those Arbitration Clauses A Major Tune Up!

On September 23, 2014, the New Jersey Supreme Court held in Atalese v. U.S. Legal Services Group that an arbitration clause in a consumer contract is not enforceable unless it clearly indicates that the plaintiff is giving up the right to go to court. Accordingly, any company doing business in New Jersey that uses an…
Read more