Most U.S. states do not have local payroll or income taxes, but 17 states (and now Washington) allow certain local jurisdictions to tax wages or payroll. These local payroll-related taxes take various forms – city or county income taxes, school district income taxes, “head taxes” per employee, and occupational privilege taxes – and are paidContinueContinue reading “Local Payroll-Related Taxes by State.”
Tag Archives: business
In North Dakota, the law mandates that nearly all employers obtain workers’ compensation insurance.
In North Dakota, the law mandates that nearly all employers obtain workers’ compensation insurance to cover their employees, including full-time, part-time, seasonal, and occasional workers. This requirement must be fulfilled before any employee begins work. BradJohnsonInsurance.com+3North Dakota State Library+3Workforce Safety+3Workforce Safety+1OnPay+1 Monopolistic State Fund North Dakota operates under a monopolistic workers’ compensation system, meaning thatContinueContinue reading “In North Dakota, the law mandates that nearly all employers obtain workers’ compensation insurance.”
Incorporation by Reference: Time to Retire a Legal Relic?
In the world of legal drafting, few traditions have endured as stubbornly—and as pointlessly—as the practice known as incorporation by reference. If you’ve ever read (or written) a complaint that includes the line:“Plaintiff hereby repeats and realleges each and every allegation set forth above as if fully set forth herein…”—congratulations, you’ve encountered this vestigial legalismContinueContinue reading “Incorporation by Reference: Time to Retire a Legal Relic?”
Business-Entity Self-Representation (Pro Se) in U.S. Courts.
Overview: In the United States, the general rule is that a business entity (corporation, LLC, partnership, etc.) cannot appear pro se in court proceedings – it must be represented by a licensed attorney. This principle stems from the idea that representing another legal person (even one’s own company) constitutes the unauthorized practice of law. SoleContinueContinue reading “Business-Entity Self-Representation (Pro Se) in U.S. Courts.”
How You Pay Income Tax as an S Corp Owner.
An S corp is a pass-through entity, which means the corporation itself does NOT pay income tax. Instead, you (the owner/shareholder) report the company’s income on your personal tax return. Here’s exactly how it works: 1. The S Corp Files a Tax Return — Form 1120-S Your S corp must file Form 1120-S with theContinueContinue reading “How You Pay Income Tax as an S Corp Owner.”
Understanding Cost of Goods Sold (COGS) in the Trucking Industry.
In most industries, Cost of Goods Sold (COGS) represents the direct cost of producing or purchasing the items a company sells. But in the trucking industry, companies don’t sell physical products — they sell transportation services. That raises the question: Does COGS apply to trucking? The answer: Yes — but it looks a little different.ContinueContinue reading “Understanding Cost of Goods Sold (COGS) in the Trucking Industry.”
Understanding the Cost of Goods Sold (COGS) Account.
What Is Cost of Goods Sold (COGS)? Cost of Goods Sold (COGS) refers to the direct costs associated with producing or purchasing the goods a business sells during a specific period. This account is crucial in determining a company’s gross profit, which is calculated as: Gross Profit = Revenue – Cost of Goods Sold TheContinueContinue reading “Understanding the Cost of Goods Sold (COGS) Account.”
Can an owner of an S corporation be treated like a self-employed individual for self-employment tax purposes?
POINTS AND AUTHORITIES – SELF-EMPLOYMENT TAX AND S CORPORATION OWNERS I. Shareholders of S Corporations Are Not Considered Self-Employed for SE Tax Purposes Point S corporation shareholders, even if they are owner-operators or provide services to the business, are not treated as self-employed for purposes of self-employment tax on their share of the business’s income.ContinueContinue reading “Can an owner of an S corporation be treated like a self-employed individual for self-employment tax purposes?”
Points and Authorities section on who is considered self-employed under U.S. tax law.
Here’s a formal Points and Authorities section on who is considered self-employed under U.S. tax law. This is based on statutory law (IRC), regulations, and IRS guidance. POINTS AND AUTHORITIES – DEFINITION OF SELF-EMPLOYED INDIVIDUALS I. Self-Employed Individuals Include Sole Proprietors, Independent Contractors, and Members of Certain Partnerships Point A person is considered self-employed ifContinueContinue reading “Points and Authorities section on who is considered self-employed under U.S. tax law.”
Points and Authorities related to self-employed taxes in the U.S.
Here’s a breakdown of Points and Authorities related to self-employed taxes in the U.S., citing the Internal Revenue Code (IRC), IRS publications, and relevant legal doctrines. These are typically used in legal briefs, so they’re presented in a formal structure. POINTS AND AUTHORITIES – SELF-EMPLOYED TAXES I. Self-Employment Tax is Mandated by Federal Law PointContinueContinue reading “Points and Authorities related to self-employed taxes in the U.S.”
The key difference between an incorporated and unincorporated entity.
The key difference between an incorporated and unincorporated entity lies in their legal structure, liability, taxation, and governance. Here’s a breakdown: 1. Legal Status Incorporated Entity: Has a separate legal identity from its owners. This means it can enter into contracts, own property, sue, and be sued. Unincorporated Entity: Has no separate legal existence fromContinueContinue reading “The key difference between an incorporated and unincorporated entity.”
How to Serve a Business Entity in California When the Agent for Service Cannot Be Found.
When initiating legal action against a business entity in California, proper service of process is essential. However, there are situations where the designated agent for service cannot be located, has resigned, or has not been replaced. In such cases, California law provides alternative methods for serving the entity. Understanding California Law on Service of ProcessContinueContinue reading “How to Serve a Business Entity in California When the Agent for Service Cannot Be Found.”
The amount of taxes an LLC pays.
The amount of taxes an LLC pays depends on several factors, including its tax classification (default or elected), the state where it’s registered, and the type of business it conducts. Here’s a breakdown: Federal Taxes An LLC is a pass-through entity by default, meaning profits and losses are reported on the owner’s personal tax return.ContinueContinue reading “The amount of taxes an LLC pays.”
Legal Document Assistants (LDAs) in California.
In California, individuals seeking to provide independent legal document preparation services without attorney supervision must operate as Legal Document Assistants (LDAs). Unlike paralegals, who are required by law to work under the direct supervision of a licensed attorney, LDAs are authorized to offer services directly to the public, assisting with the preparation of legal documentsContinueContinue reading “Legal Document Assistants (LDAs) in California.”
What is an Arbitrary Decision in the U.S.?
An arbitrary decision refers to a decision made without a sound basis in law, logic, or reason. In the context of the U.S. legal system, it generally implies that the decision lacks a rational connection between the evidence presented and the conclusion reached. Such decisions are often characterized by a disregard for established legal principles,ContinueContinue reading “What is an Arbitrary Decision in the U.S.?”
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