Articles From Lumsden McCormick

Converting your unincorporated small business to an S corporation can significantly reduce your self-employment tax liability by allowing you to take part of your income as distributions rather than salary. While this strategy offers tax advantages, it also comes with administrative requirements and considerations around reasonable compensation and retirement contributions.

The OBBB outlines key tax changes for businesses, including enhanced deductions and reporting thresholds starting in 2025. Highlights include 100% bonus depreciation, full expensing of domestic R&E, and increased 1099 thresholds, with some provisions expiring at year-end and others continuing into 2026 and beyond. Additional updates affect small business R&E elections, ERC claims, and the Qualified Opportunity Zone program.

POD and TOD accounts offer a fast and simple way to transfer assets directly to beneficiaries, bypassing probate. However, they can unintentionally override your will, create unequal distributions, and lack flexibility for more complex estate planning needs.

The OBBB introduces various extensions and amendments to the Tax Cuts and Jobs Act (TCJA). Key provisions covering tax rates, expanded deductions and changes to credits will begin rolling out in 2025.

In an increasingly competitive funding landscape, nonprofits are turning to AI tools to help craft grant proposals, but success still hinges on understanding the fundamentals of proposal writing. While AI can streamline the process, funders value authenticity, customization, and adherence to guidelines, making human oversight and strategic storytelling essential.

The Historic Rehabilitation Tax Credit (HTC) offers financial incentives for preserving historic buildings. It provides insights into the application process and potential challenges, helping to enhance the value of historic properties.

Choosing the right business entity is essential for tax efficiency and operational success. This guide compares five common structures, sole proprietorship, S corporation, partnership, LLC, and C corporation; highlighting how each is taxed and what compliance requirements they entail. Understanding these differences helps entrepreneurs align their entity choice with financial goals and growth plans.

A living trust, also known as a revocable trust, is a legal tool that allows individuals to manage and distribute their assets during their lifetime and after death, often avoiding probate and ensuring privacy. While it requires more setup than a will, it offers flexibility, control, and continuity, especially in cases of incapacity. Including a living trust in your estate plan can provide long-term peace of mind and smoother asset management.

Nonprofits facing financial pressure may find relief by revisiting their board-designated assets—unrestricted funds set aside for specific purposes. With proper policies and documentation, boards can reallocate these funds to address urgent needs, improve cash flow, or support strategic initiatives.

The One, Big Beautiful Bill (OBBB) Act significantly updates IRS reporting rules by raising the threshold for issuing Forms 1099-NEC and 1099-MISC from $600 to $2,000 starting in 2026, with future adjustments for inflation. This change will reduce paperwork and compliance burdens for businesses, especially small ones, while still requiring accurate income reporting and recordkeeping.