Latest Posts on Megan Hughes

  • Why States Will Chase YOU, and Not Your Customers, for Internet Sales Tax

    November 16, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 1 Comment

    There’s never a dull moment when it comes to the ever-shifting mess that is state attempts to tax Internet sales! Today we’ve got just a couple of tactics that financially-strapped states are using to try and bring in extra tax dollars from Internet-based sales. Nexus Based on Virtual Location You’re a website designer, who lives and works in Los Angeles, CA. You’re creating a website design for someone in New York, using software that resides on a... Read More »

  • 5 Ways to Make Sure that a Partnership is a Good Idea for Your Business

    November 8, 2010 | Posted in Megan Hughes, USATaxAid's Blogs

    Ask most business people their most horrendous business story, and it will almost always involve a partner. The thing with business partners is that eventually they get all the way in. You may start off as arms-length business partners, or simply cordial associates, but sooner or later, you get closer. And that close working relationship is almost inevitable as you build the business together. In some ways, your business partner may end up being as... Read More »

  • Colorado takes a different approach to Taxing the Internet

    November 5, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 3 Comments

    We’ve been talking all week about Internet tax, and nexus – how state governments are trying to drag Internet retailers into their states and force them to collect sales tax. We’ve talked about North Carolina, Texas and New York, as well as states that want you to impose a sales tax on digital downloads. In today’s post, we’re looking at Colorado, and how it adopted an entirely different approach to taxing the Internet. In March of... Read More »

  • How the Big Apple Started the Internet Sales Tax Debate

    November 4, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 4 Comments

    Back in April of 2008, New York lawmakers were looking for ways to make up some ground in tax collections. The Internet, with its billions in untaxed retail sales, looked to be a great target. So, they designed and enacted a law, commonly known as the Amazon Tax law, one that that has fundamentally changed how Internet retailers operate. New York was looking to get around a Supreme Court decision, (Quill Corp. v. North Dakota (91-0194),... Read More »

  • Lone Star State Takes a Bite Out of Amazon.com

    November 2, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments

    Yesterday’s topic was how the State of North Carolina went up against Amazon.com regarding Internet-based sales tax … and more or less won. Today, we’re talking Texas, and how the Lone Star state is approaching the issue. And, as the unofficial Texas motto is “Go Big or Go Home” they did just that – issuing Amazon a tax bill of some $269 million, for uncollected sales taxes from 2005 to 2009. So how is Texas making... Read More »

  • Tax-Free Shopping on the Internet? Not for much longer!

    November 1, 2010 | Posted in Megan Hughes, USATaxAid's Blogs

    Are tax-free Internet sales doomed? With Amazon facing a huge $260+ million tax bill in Texas, lawsuits in several states, and a recent ruling by a Federal Court in Washington State (concerning Amazon's fight with the North Carolina Department of Revenue), it could be the beginning of the end, for tax-free Internet shopping. In a late October ruling (see the end of this post for a link to the court decision), the court basically said... Read More »

  • Remember to Transfer Assets into Your Company

    October 22, 2010 | Posted in Megan Hughes, USATaxAid's Blogs

    When you’re first starting a business, you’re going to be bootstrapping it, which means funding it with your own money and your own assets. Maybe you change your cellphone over to business use, or you begin using your computer for business. How about getting the home office set up? Your desk and chair have to come from somewhere, and if that happens to be the garage or the attic, it’s one less thing you need... Read More »

  • What is a Series LLC

    September 27, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments

    On September 14th, the IRS finally issued something we’ve been waiting for … proposed formal regulations on how the Series LLC will be treated for tax purposes. It’s great news – we’ve needed clarity in this area for several years, and it will go a long way towards helping Series LLCs gain in popularity and workability. This week we’re going to be talking about what those Regulations mean for current Series LLC owners, as well as... Read More »

  • Why LLCs are Better than Corporations for Asset Protection

    September 16, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 1 Comment

    Today, when a client comes to me asking about the best business structure, I’m recommending an LLC about 90% of the time. Here are my top 5 reasons for making that call: 1. LLCs are easy to set up. You aren’t struggling with trying to figure out authorized capital, stock types, and so on. All 50 states have LLC laws. 8 states also have Series LLC laws, which I love, because they’re even more flexible. 2. LLCs are... Read More »

  • Does a Single Member LLC Protect Your Assets?

    September 15, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments

    In theory, a Single Member LLC (SMLLC) should a great idea. But in today's world, I'm not sure that's always the case. LLCs give us asset protection through the laws of each state, that say creditors may not generally attach or seize a debtor’s assets where those assets are held in an LLC (as long as the LLC has nothing to do with the debt or lawsuit at hand). So in a situation where you’re... Read More »

  • 3 Steps to Asset Protection that Really Works

    September 14, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments

    If you want to protect your assets, the easiest thing to do is to start an LLC, right? Yes, and no. Yes, an LLC that is properly set up can be a great piece of asset protection for you. Someone looking to sue you personally won’t be able to attack or seize the assets in the LLC, except in special circumstances. But setting up an LLC is often as far as people get. And yet, unless you... Read More »

  • How to Calculate Federal Income Tax

    September 9, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments

    When you hear people say things like “I’m in the 35% income tax bracket,” what are they really saying? Are they truly paying out 35 cents on ever dollar they earn just in federal income tax? And what do people mean by the “marriage penalty?” When you’re looking at how to calculate income tax, it’s important to remember that we have several tax brackets in the U.S. Here’s how they break down for single people: From $0... Read More »

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