Articles From Lumsden McCormick

Manufacturers can control labor-related costs, such as workers’ compensation and unemployment insurance, by implementing safety programs and strategically managing hiring practices. Accurate employee classification, return-to-work programs, and challenging invalid unemployment claims are key strategies to reduce premiums and tax rates. Taking these steps can lead to better financial stability and increased profitability.

As the fourth quarter of 2024 approaches, business owners must be aware of key tax deadlines, including filing returns, making estimated tax payments, and contributing to retirement plans. Missing these important dates can result in penalties or interest charges. This article highlights the most critical deadlines and filing requirements to help ensure businesses stay compliant.

This article discusses the risks of using a holographic will, illustrated by the legal dispute over Aretha Franklin’s estate. Although Michigan permits handwritten wills without witnesses, they can lead to conflicts and challenges due to ambiguous language or incomplete provisions.  New York State does not accept holographic wills as a legal document.

To improve the efficiency of nonprofit board meetings, it's essential to create a clear agenda, enforce time limits, and ensure proper follow-up on unresolved issues. Implementing tools like a consent agenda can further streamline routine matters, saving valuable time. Keeping meetings focused and structured fosters productivity and board member engagement.

States have made many changes to their economic nexus thresholds in the wake of the landmark sales and use tax decision in South Dakota v. Wayfair from 2018.

A well-drafted partnership or LLC operating agreement should address key tax considerations, such as guaranteed payments, partner liabilities, and payments to retired partners. These provisions ensure tax compliance and help manage potential issues like partner exits or ownership transfers. Properly addressing these matters minimizes tax liabilities and protects the business.

Nonprofits typically don’t pay unrelated business income tax (UBIT) on investment income, but income from debt-financed property is often taxable. Real estate and investments purchased with borrowed funds may trigger UBIT, and the taxability depends on factors like the property’s purpose and financing. It's important to consult a tax advisor to ensure compliance.

A spendthrift trust is a useful tool for protecting assets and ensuring responsible management of an inheritance. It prevents beneficiaries from directly accessing or mismanaging funds, while also protecting against creditors. The trustee plays a crucial role in managing payments, providing financial security for the beneficiary in line with the trust’s terms.

AI is transforming manufacturing by improving efficiency, product development, and decision-making. Key applications include predictive maintenance, quality control, and supply chain management. While AI offers significant benefits, it requires careful planning, investment, and a phased implementation approach to ensure success.

As the year-end approaches, small businesses should focus on tax planning strategies like deferring income, accelerating deductions, and maximizing the QBI deduction to reduce their tax liabilities. It's also essential to stay updated on estimated tax payments, Section 179 expensing options, and potential changes to tax laws that could impact future filings. Consulting with a tax professional can help tailor these strategies to your business's needs.