Articles From Lumsden McCormick

Operating as a C corporation offers benefits such as limited liability protection and the ability to raise capital through multiple classes of stock. However, it also comes with drawbacks like double taxation and the need to comply with various state-mandated formalities. Overall, it's important to weigh these pros and cons to determine if a C corporation is the right choice for your business.

When starting a new 501(c)(3) nonprofit organization, you have two options for applying for tax-exempt status with the IRS: the traditional Form 1023 and the streamlined Form 1023-EZ. The traditional Form 1023 is more comprehensive and available to all organizations, but it is time-consuming and costly. In contrast, Form 1023-EZ is shorter, cheaper, and designed for smaller nonprofits, but it has strict eligibility requirements.

Manufacturing companies must create comprehensive and realistic budgets in 2025. Key considerations for creating budgets include avoiding reliance solely on past results, seeking input from all departments, setting attainable goals, managing cash flows, and treating budgeting as an ongoing process.

Intangible assets, such as patents, trademarks, and goodwill, play a crucial role in modern businesses. Understanding the tax treatment of these assets is essential, as it involves complex regulations and capitalization rules. This article provides answers to frequently asked questions and offers guidance on managing the tax implications of intangible assets.

As businesses prioritize innovation, tax leaders need to stay informed about recent and potential changes to R&D tax policy. These include proposed modifications to R&D tax credit reporting requirements and ongoing guidance on capitalizing certain R&D expenses. Understanding the implications of these changes is essential for advising the C-suite and preparing for shifts in the regulatory environment. This article offers a concise overview of the current tax policies impacting R&D.

This guide examines base erosion anti-abuse tax, known as BEAT, proactive approaches to transfer pricing, and more as businesses plan for the year end and the coming year.

Balancing competition and collaboration is crucial in the nonprofit sector. Nonprofits often collaborate on events and campaigns, but they also compete for resources like donations and volunteers. Understanding when to compete and when to collaborate is essential, and the article offers strategies for managing both.

Understanding how to deduct local transportation costs can significantly reduce your small business’s tax burden. While commuting costs aren’t deductible, travel expenses for business purposes, such as trips from your office to a client’s location, are deductible. Proper recordkeeping is essential to ensure these deductions are accurately claimed.

As we approach year end, it's time for individuals, business owners and family offices to review their 2024 and 2025 tax situations and identify opportunities for reducing, deferring, or accelerating their tax obligations. With rising interest rates, inflation and continuing market volatility, tax planning is as essential as ever for taxpayers looking to manage cash flow while paying the least amount of taxes possible over time. 

Corporations are responsible for a wide range of distinct tax regulations and challenges. It's important to consider key developments as corporations wrap up the 2024 tax year and move into 2025.