Resources
Maximizing the qualified business income tax deduction for sole owner/sole employee businesses
The 2017 Tax Act introduced a new deduction for pass-through entities. Owners of S corporations, sole proprietorships, partnerships and limited liability companies treated as sole proprietorships are entitled to an income tax deduction of up to 20 percent of their qualified business income (“QBI”) on their personal income tax returns. Despite the fact that the QBI deduction has been available for years, many individuals starting their own businesses as sole owner companies with no employees continue to experience confusion in selecting the optimal structure to take advantage of the 20 percent tax deduction.
The ‘Windfall Gals’ reject manufacturer’s contention that paying the rep was a windfall
Just a few months ago, on the fifth floor of the courthouse in a sleepy Philadelphia suburb, an international manufacturing conglomerate squared off for 3½ days against a local sales rep. The battle was over commissions due under the terms of their contract, plus statutory damages.
Reaping retirement plan benefits from the most tax-friendly retirement plan
Suppose you were asked to design the most taxpayer-friendly retirement plan possible. If given a choice, you would want a plan that allows for generous annual contributions. The contributions would be tax-deductible, regardless of whether or not you itemize deductions and regardless of your earnings or taxable income.
Sometimes proving the willful withholding of commissions is “f*#!ing easy”
California’s sales rep protection statute, among the nation’s strongest, mandates an award of treble damages to a rep who does not receive commissions as provided in the contract.
One of the Strongest Rep Decisions — Ever
“They will be surprised to learn that, under the default rule the Court adopts today, an at-will salesperson is entitled to commissions for any sale – here, perhaps hundreds of thousands of sales – a jury determines the salesperson ‘set in motion.’ And they will be stunned to learn that, under the default rule, the entitlement to commissions may extend years after their employment relationship ended.”
Premium Financing — An Inexpensive Means of Purchasing Life Insurance
The ownership of life insurance is a much-needed component of business succession and personal financial plans. Life insurance needs vary from funding needed to purchase the ownership interest of a business partner upon death, creating liquidity for the family of a decedent for the payment of estate taxes, or providing cash for surviving family members. In many cases, the purchase of permanent insurance is needed rather than term insurance where the coverage will lapse after some period of time.
Using a Contract Breach to Defend Against a Sales Rep’s Claim for Breach of Contract
Some sales rep cases turn on persnickety contract language or ambiguous terms. Other rep cases involve arcane questions of law. Then there’s the case brought by sales rep Lindsie Williamson that worked its way up to the Supreme Court of Utah in November 2022.
‘Scorched Earth’ Tactics Burn Both the Manufacturer and Its Legal Counsel
“Effective sales reps are the lifeblood of this market.”
U.S. District Judge R. Brooks Jackson was describing how medical implants manufacturers deploy sales reps with not only the character traits to develop relationships with surgeons, but also the medical knowledge necessary to help the surgeons use their products in the operating room.
Classification of Manufacturer’s Representatives as Employees or Independent Contractors
The determination is significant because different tax treatment results from the classification of the representatives.
Creative Retirement Designs for Small Business Owners
For many small business owners, the key retirement plan decision is not what type of plan to adopt, but where the 401(k) plan funds should be invested. While 401(k) plans are the overwhelmingly popular plan of choice for employers, consider that alternative plan design options are available to maximize benefits for company owners with both 401(k) plans and other types of qualified retirement plans.