Article Summary You can form a California LLC for $0 to about $300 in filing fees, but that usually covers only paperwork, not tax elections, ownership terms, or compliance planning. In the $500 to $1,500 range, attorney help often includes filing plus a basic operating agreement for a straightforward LLC setup. In the $1,500 to $3,000 range, an attorney usually reviews income flow, profit splits, & asset Read More

Article Summary If your S corp sells assets for an installment note, you usually report the gain over time under IRC §453 instead of all at once. If you later liquidate and distribute that note without meeting the required rules, IRC §453B can force the remaining deferred gain into the liquidation year. If the sale and liquidation fit the timing rules under IRC §453(h) and §453B(h), you can distribute the note Read More

Article Summary: The single-enterprise rule allows California courts to treat related companies as a single entity when they operate as a unified economic unit. Shared operations, finances, or control between entities may expose you to joint liability. A multi-entity structure that doesn’t reflect actual operations can create legal risks. Align your legal structure with how entities function to reduce Read More

Article Summary Starting January 1, 2025, AB 2837 changes how California courts treat 401(k)s, pensions, and other employer retirement plans in creditor actions.  These accounts are no longer automatically exempt in state court and are now protected only to the extent a judge finds them reasonably necessary for retirement.  Bankruptcy protections remain unchanged.  For business owners and high Read More

Article Summary The timing of your entity formation in California can greatly impact your property's tax reassessment risk, with early formation offering clearer transfer options. Acquiring property directly through an entity provides long-term flexibility for ownership transfers and simplifies succession planning without triggering reassessment. Post-closing transfers into an entity can trigger change-in-control Read More

Many people are not aware of the benefits that an LLC can bring to reduce their taxable income on their personal residence that you intend to turn into a rental property. While this method can bring you some great capital gains tax savings, there are a few things to keep in mind before making the decision. First, you’ll need to sell your primary residence to an LLC that you own on an installment note. This will Read More

Navigating tax season can be a challenge for business owners because they must account for various deductions and credits to reduce their taxable income. As we help you come up with an effective tax strategy, one option you may not have heard about or don’t fully understand is the deduction for vehicles weighing over 6,000 pounds. This deduction is a tool for businesses that rely on large vehicles—decreasing taxable Read More

Most C corporation owners spend years building more than just a company; they build trust, reputation, and lasting relationships that drive revenue.  According to the Harvard Business Review, up to 80% of a company’s market value can come from intangible assets like brand reputation, customer loyalty, and professional relationships. Yet when it’s time to sell, many California business owners fail to capture that Read More