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Income and Salary to an S-Corp Owner


The owner of an s-corporation is quickly introduced to some very complicated tax issues.  The s-corporation has “flow-through taxation”.  This means the s-corporation itself generally pays no income taxes.  The s-corporation files its own tax return, but its shareholder owners report and pay the taxes on the owners’ personal tax returns.  But these shareholders may also be required to pay themselves a salary if they are also employees or otherwise perform services for the corporation.  Read more…


Forming An Irrevocable Life Insurance Trust (ILIT)


An Irrevocable Life Insurance Trust, or ILIT, should be of interest to any person buying life insurance. The ILIT is not just for people with estate tax issues. The ILIT can allow you to control how and when insurance proceeds are distributed to beneficiaries. Rather than going straight to the beneficiary, the insurance company pays the proceeds into a trust that then pays the amounts to the beneficiary as quickly or as slowly as you decide. Such a trust can be particularly beneficial when the potential beneficiary is either younger or may have potential marital issues or difficultly managing money. Read more…

Commercial Leases – Drafting and Review


Locating a property or a tenant for leasing can be a very time-consuming process, so it’s understandable that parties often rush to get the lease signed; however, having a good lease agreement that’s been drafted and reviewed by an attorney can be essential.  If issues or disputes arise between the landlord and tenant, it will be too late to address problems with the lease agreement.

Almost everyone has had the opportunity to review a lease during their life, but commercial leases are far more complex.  Further, consumer protection laws that save renters from bad landlords often only apply to residential leases, not commercial.  With commercial leases, the laws generally assume you are a sophisticated business person and were not “taken advantage of” if your landlord or tenant gives you an unfair lease agreement. Read more…

Not Having a Will in Maryland


Many wonder what happens if you die without a Will. Each state, including Maryland, has its own laws that determine what happens to the person’s estate. The differences between each state’s laws do cause confusion, and your assumptions about Maryland’s laws may be incorrect and can cause incredibly negative problems.

When someone dies without a Will, the rules governing the estate are called “intestate laws”. When intestate laws apply, the deceased person may be referred to as having “died intestate” and having left an “intestate estate”. Your state’s intestate laws serve essentially as your Will if your family cannot provide an actual Will. Maryland’s intestate laws are often not what most people expect. Read more…

Didn’t File Tax Returns? The IRS Offers Solutions for Nonfilers


Whether on purpose or by mistake, taxpayers sometimes find themselves years behind on filing their tax returns.  Sometimes people are lucky and decide on their own to file past due tax returns and move on with their life.  Others have the decision made for them when an IRS agent knocks on their door.  Regardless, when you are significantly behind on your tax return filings, you should seek professional help to ensure you can minimize penalties and, hopefully, reduce the taxes you need to pay. Read more…

Family Business Succession Planning


Small businesses comprise a significant portion of our economy. Unfortunately, most small businesses do not survive into the next generation of owners. The hard work and legacy of the current and prior generations can be wasted without proper planning.

Small business owners often feel they have sufficient time to begin making the transition and will delay the necessary steps until some fateful event forces them into acting. This leaves little or no time to prepare the business and the family for the burdens, both financial and managerial, that can be caused by a sudden and unplanned transfer. Read more…

Business Contract Drafting and Review


Properly drafted commercial contracts not only improve the professional appearance of your business, but may also determine whether your contracts can be enforced in court or whether you can avoid court altogether.  For various motivations, some people attempt to create their own contracts or recycle agreements they somehow came across.  A company not relying upon an attorney to draft or review their contracts will be rolling dice both on their contracts’ appropriateness and enforceability.   Read more…