Websites and where to sue

After she became dissatisfied with the services of home remodeling contractors that she had obtained through an Internet referral website, Victoria sued the referral business for breach of contract, fraud, misrepresentation, and negligence. Continue reading

Overtime Pay Update

Under the federal Fair Labor Standards Act (FLSA), employers must pay an employee an overtime rate of at least one and one‑half times the regular pay rate for any hours in excess of 40 hours a week. There are exemptions from this requirement for several types of employees, including employees in executive, administrative, or professional capacities. Continue reading

What is an “S-Corporation”?

An S corporation is a form of business classified for federal income tax purposes as a corporation that has elected to be taxed as a pass‑through entity, in a manner similar to a partnership or sole proprietor. Unlike a regular corporation, or C corporation, an S corporation (both names derive from sections of the Internal Revenue Code) generally is not subject to federal income tax. Instead, its income is reported on the tax returns of its shareholders, and they have the responsibility for paying the tax. If there are losses suffered by the corporation, they also pass through and are reported on the shareholders’ income tax returns. Continue reading

Business loans cannot reduce estate taxes

A section of the federal Internal Revenue Code authorizes estate tax deductions for qualifying interests in family‑owned businesses. For the deduction to apply, the value of the interest in the business held by a person at the time of his or her death must exceed 50% of the total value of the person’s adjusted gross estate. This is known as the “50% liquidity test.” Continue reading