Gift tax $5,000,000 exemption may be expiring

As of today, you can give up to $5,000,000 free of estate or gift taxes to your children or grandchildren, pursuant to the new estate planning rules signed into law by President Obama in December 2010. However, Congress is currently considering reducing that amount significantly, and shortening the time frame by which gifts can be made. Since we don't know what will happen to the estate tax rules after 2012 (whether they will keep the $3.5 million tax exemption, or lower it), if you're in a position to do so, now is the time to take advantage of the $5 million exemption. This may be gone by the end of 2011, or even sooner.

IRS revokes tax-exempt status of hundreds of thousands of non-profits

The IRS has started publishing a list of organizations that have had their federal tax-exempt status automatically revoked for failing to file an annual information return or notice with the IRS for three consecutive years.

Here's a link to the IRS list for California: http://www.irs.gov/pub/irs-tege/ca.pdf. If you regularly give money to a charitable organization, be sure and verify they aren't on this list. If their tax exempt status has been revoked, your donation will not be tax deductible.

BioLargo signs Central deal

One of my clients, BioLargo, Inc., just signed a deal with Central Garden & Pet Company, details here: http://biolargo.blogspot.com/2011/03/central-garden-and-pet-signs-exclusive.html

Should I incorporate in Delaware???

If you're doing business in California, you are subject to the laws of the state -- thus, forming a corporate entity out of state, such as Nevada or Delaware, does not change the requirement that you register your corporation in California, and pay California's annual Franchise tax of $800.


You really need to consult with a business attorney to determine if you even "need" to incorporate. Many clients that think they should, shouldn't, and others that don't think they should incorporate, should do so. There are many factors to consider, and cost, including California $800 annual minimum franchise tax, is one of them