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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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The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
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Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.