Covering the week’s most noteworthy business news impacting the Filipino-American and Global Filipino community.
LIMITED Liability Company (LLC) is a hybrid that combines the pass-through attributes of a partnership with the limited liability of a corporation. The owners are called “members” who hold “interests” and are governed by an “operating agreement.” An LLC with more than one member is taxed as a partnership. This is a relatively new form…
DECIDING if bankruptcy is right for you can be one of the most important decisions you’ll ever make in your life. As much as possible, most people try to avoid it, of course. But sometimes, the hole you’ve dug up is too deep that there is no other way out. For example, perhaps you owe…
Your vehicle is one of the most important purchases you will do in your life, but it doesn’t have to be daunting. Here are some tips that not only help make the process quicker and stress-free, but can also save you a few bucks. • Know your vehicle needs. Not sure what car you want yet? First…
AFTER an audit of your tax returns by the IRS and you disagree with the determination, you have the option to either accept the assessment and settle the tax you owe by signing the agreement form or request an appeals conference by writing a protest to Appeals Office. The appeals process is an administrative means…
A FRIEND who was recently hit by a car while jogging asked me if her premium would go up if she would claim from her auto policy. Sounded like a simple question to ask. But really a good situation to borrow to explain the different coverages of an auto policy. My friend could have opted…
Senior seeks Chapter 7 to wipe out $40K credit cards ONE of the many problems of owning a business is: getting sued by the employees. Employees always think that employers have deep pockets to pay for lawsuits. Perhaps some large businesses can afford to pay big chunks of money for lawsuits, but most actually, cannot. If…
A SEPARATION package or a severance agreement is a contract between an employer and an employee who is about to leave the employer’s employment. In a typical severance agreement, the employer agrees to give the employee additional compensation (the severance pay) in exchange for the outgoing employee’s agreement not to sue the employer for any…
S CORPORATION is a corporation that has elected to be taxed under Subchapter S of the Internal Revenue Code. But why elect S status? Well, this type of entity enjoys both the limited liability of corporations and absence of double taxation of sole proprietorships and partnerships. The corporation elects to pay zero corporate federal tax!…
IF you’ve accumulated a lot of debt and something has happened in your life that’s made it difficult to pay your bills, you are not alone. After almost 18 years of practice as a debt relief attorney, I know that bad things can happen to good, honest and decent people. If you are going through…
(Part 2) FORM 1098-T from an eligible educational institution is REQUIRED for 2016 TO CLAIM the American Opportunity Tax Credit AOTC (previously Hope Scholarship Credit), Lifetime Learning Credit LLC, and Tuition and Fees deduction. Here are some tax tips to benefit from these credits in 2016 • Additional criteria must be satisfied for these refundable…
ASK any parent whom they would want to inherit their estate and the overwhelming majority would answer the same thing, “My kids.” Unfortunately, many Filipino parents are unintentionally disinheriting their children that they love and adore. Here is how it usually happens: A man marries, has children, works hard and accumulates an estate, i.e., generally…
Senior files Chapter 7 to discharge $40K credit cards “ To live for eternity in paradise, we have to believe in Jesus Christ who said that “I am the way, the truth and the light; No one gets to the Father, except through me.” That’s pretty simple and clear, isn’t it?” CLIENT is a foreign company…
Q: I AM a salaried employee exempt from overtime. I often work more than 40 hours per week. However, there are days when I work less than 8 hours per day. For example, last week, due to a personal emergency, I was able to work for 6 hours only. When I work less than 8…
SHOULD you operate as a sole proprietorship, partnership, corporation, LLC, or LLP? Which entity is most beneficial for you? Choosing the wrong form could cause unnecessary taxes, increased liability, and unnecessary exposure to lawsuits. What you should not do is listen to your neighbor or friend because each one has a different set of circumstances…
HAVE your credit card debts become larger than you have ever expected? Are you struggling to even keep up with the minimum payments required every month? If you are in this situation, maybe you’ve wondered about what the legal repercussions might be once you get to the point where you can no longer continue paying…
(Part 2) FORM 1098-T from an eligible educational institution is REQUIRED for 2016 TO CLAIM the American Opportunity Tax Credit AOTC (previously Hope Scholarship Credit), Lifetime Learning Credit LLC, and Tuition and Fees deduction. Here are some tax tips to benefit from these credits in 2016 • Additional criteria must be satisfied for these refundable…
Seniors choose Chapter 7 to discharge $30K and $10K credit cards CLIENT is 47, single and a registered nurse. Her income is good at $80K a year. She has no dependents except her mom who lives with her. Despite her good income, she has a default on her mortgage for $50K. She had an affair…
KNOWING how to save on auto insurance is important. Over time, the savings could be a lot of money. Here are some good tips on how to save on auto insurance: #1 Have appropriate coverage Common sense would tell you to minimize coverage to save money. But of course, you should not be overly minimizing…
Q: I WORK for a temp agency with headquarters outside California. As a condition of work, I agree to report to a location anywhere in Southern California assigned by the agency and I have to wait to be given work. Often, I report to a location and I am assigned work only after 3 or…
THERE are two different approaches to prepare for an audit: organized and shoebox. Organized means systematically arranging your records. Shoebox means simply being you—naturally disorganized. Let’s discuss each method so you can determine which one is best for your next audit. Why You Should be Organized: 1. This methodical approach of presenting data in a…
WHEN people are going through financial difficulty and are unable to pay their bills, their first reaction is often to ignore their debts and avoid contact with creditors. They think that by doing this, somehow the creditors will simply give up and go away. Bad news: This rarely works. Then one day they get a…
Long Beach, Calif. – As a continuing public service, E.C. Ferrer Custom House Broker, Inc. is sponsoring another half-day seminar for importers, entrepreneurs, distributors, wholesalers and retailers on Oct. 26 from 8 a.m. to 11 a.m. at the Long Beach Marriott Hotel on 4700 Airport Plaza Drive. Complimentary breakfast will be available and served upon…
Senior seeks Chapter 7 relief for $19K credit cards CLIENT is 55 and single. He appears to have no problems to worry about. He is self-employed and makes about $5K monthly teaching people a special skill. He has no dependents. He owns a house that has no equity. The house is worth $400K but he owes…
Q: I WORK as a nurse at a hospital that has a strict policy of no unapproved overtime, and no going on breaks unless we are relieved by another nurse. We are forced to skip our breaks if there is no reliever (which happens a lot because we are often understaffed). As for overtime, we…
THE IRS issued new guidance requiring individuals with an interest in a “specified foreign financial asset” to attach a disclosure statement to your income tax return for any year in which the aggregate value of all such assets exceeds $50,000. Use new form Form 8938 (Statement of Specified Foreign Financial Assets) starting in 2011. Q….
IF you’ve made the decision to file bankruptcy in order to get a fresh financial start, here are some things to consider in choosing between Chapter 7 or Chapter 13. Be aware, however, that your income and expenses have a lot to do with which chapter you will be able to file because the courts…
THE American Opportunity Tax Credit AOTC and Lifetime Learning Credit can reduce your tax liability if you pay for college in 2016 even if you are studying outside of the U.S. The PATH Act makes permanent the AOTC used to be known as Hope Credit. The AOTC has been increased up to $2,500 and phases…
Another senior seeks chapter 13 relief for $50K credit cards CLIENT is 57 and recently divorced with two children, one in high school the other in college. She makes $40K yearly in middle management for a large corporation. She has $50K of credit cards accumulated while she was still married. Ex husband had good income. So,…
(Why misclassification of workers is a social justice issue) ON September 10, 2013, 53-year-old Faustino Solorio was a pedestrian standing on the shoulder of the road behind the tailgate of a truck. At this same exact time, 18 year-old Gunnar Ayala was driving his father’s car, having just finished his shift as a delivery driver for…
Q. AM I required to report bank accounts in a foreign country? A. Yes, if you have more than $10,000 at any time outside the U.S. Q. Am I exempted from reporting if my accounts are in Euros, Chinese Yuan, Philippines pesos, or Mexican pesos? A. No, you are not exempt from reporting foreign accounts…
