The Bank Secrecy Act requires taxpayers to report foreign bank accounts, brokerage accounts and mutual funds, to the Treasury Department. Taxpayers report the accounts by filing a Report of Foreign Bank and Financial Accounts (FBAR). Who Must File A U.S. person, corporation, partnership, limited liability company, trust and estate, must file a FBAR to report…
Continue reading ›Why do closely held corporations impose restrictions on the transfer of stock? 1. The owners of the business may desire to limit who can become a partner in the business. This is typical where the company is family-owned. Allowing an outsider non-family member is often unappealing to the original stockholders. 2 Venture capital firms and…
Continue reading ›In New York State organizers form a limited liability company (LLC) by filing Articles of Organization with the Department of State. Any person or business entity may be an organizer. The next step is very important: LLC members must enter into an operating agreement, which sets forth the rights of the members and the rules for…
Continue reading ›When a partnership is formed partners contribute property and/or cash into the partnership. The partners “capital account” keeps a record of these contributions. The capital account increases or decreases as a function of what the partner puts in or takes out of the partnership. For example, taking losses is treated as taking something out of…
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