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PC Partners Face NY Tax Challenge: Will Other States Follow?
Last year, we informed LFPBR readers of the rediscovery by some partners in multi-state partnerships of the benefits of becoming a professional corporation ('PC') partner in their law firms, primarily to obtain state income tax savings. See, Banoff, 'To PC or Not to PC: The Rise and Fall and Rise (Again) of Professional Corporation Partners in Law Firms,' LFPBR, Vol. 12, No. 9 (Oct. 2006), p. 1. We observed that some firms have accommodated (and in some cases encouraged) some of their partners to consider the incorporation alternative. As discussed below, New York recently enacted legislation that would potentially adversely affect that strategy, including those who incorporated long before the legislation was passed, and it is unclear whether other states may follow.
Anecdotal evidence indicates a rebirth in recent years in the use of PCs for partners of profitable multi-state law partnerships, to provide aggregate (multi-state) income tax savings for some or many of the firms' highly paid partners. The PC structure is particularly useful for highly profitable law firm partnerships, limited liability partnerships ('LLPs'), and limited liability companies ('LLCs') ' taxable as partnerships that have a substantial amount of their income attributable to offices in states having high income tax rates applicable to individual partners.
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Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.