In my experience, websites with FAQs answer the questions I don’t have. Please refer to other websites for the answers to your FAQs. This page is for questions that rarely come up.
Would you be able to produce a letter stating that a Delaware LLC can do business in California for opening a new checking account?
The path you need to take is to register to do business with the California Secretary of State. Please review the following page:
Once you have reviewed that page, go to:
There you will find instructions and a form for applying for a California registration. Once you have your California ID, any bank will allow you to open your checking account. You will also need your articles of organization along with proof of authority to be a signatory for the LLC.
Let me know if you have any other questions.
Where can I legally save taxes?
The income tax law is designed to reward or punish behavior. The first behavior that is punished is income producers who do not plan ahead. The next group is those with imperfect crystal balls. That’s right, in a world where perfect forecasts of certain losses can be made; different elections may be made than when you have to guess the outcome.
For example, trading commodities or stocks with such frequency that you qualify as a trader entitles you to deduct 100 percent of your losses. Unfortunately, that also subjects you to ordinary tax rates on your profits. If you want the benefit of capital gain tax rates, you might arrange your affairs to avoid trader treatment. Unfortunately, when your crystal ball breaks and that planned taxable gain turns into the nightmare of a 25 million dollar loss, you are limited to writing it off at three thousand dollars a year, as an individual, or only against future capital gains if you are a C corporation.
The really annoying thing about modern tax planning is that your best laid plans can be wiped out by the Alternative Minimum Tax; or AMT. AMT is designed to make sure that anybody from the middle class up pays at least a flat tax. Live in a high tax state such as California? Then serious planning may be your best option for limiting the damage from the AMT – just from paying your state income taxes.
If you have a sophisticated business such as a doctor’s office with real estate holdings, there may be opportunities for major tax savings.
I’ve been told that my non-profit church is required to have an audit committee. Is that true?
You appear to be exempt from the law that Mr. X refers to, below. The law is based on SB 1262 that was passed in 2004. I saw no evidence to suggest that the law has been modified since. The relevant section is paragraph 12583. The full text of Chaptered SB 1262 can be found on the URL below:
The relevant paragraph is extracted for your convenience and emphasis is added by me with yellow highlight:
SEC. 4. Section 12583 of the Government Code is amended to read:
12583. The filing, registration, and reporting provisions of thisarticle do not apply to the United States, any state, territory, orpossession of the United States, the District of Columbia, theCommonwealth of Puerto Rico, or to any of their agencies orgovernmental subdivisions, to any religious corporation sole or otherreligious corporation or organization that holds property forreligious purposes, or to any officer, director, or trustee thereofwho holds property for like purposes, to a cemetery corporationregulated under Chapter 19 (commencing with Section 9600) of Division3 of the Business and Professions Code, or to any committee asdefined in Section 82013 that is required to and does file anystatement pursuant to Article 2 (commencing with Section 84200) ofChapter 4 of Title 9, or to a charitable corporation orunincorporated association organized and operated primarily as areligious organization, educational institution, hospital, or ahealth care service plan licensed pursuant to Section 1349 of theHealth and Safety Code.
The bottom line is that Mr. X appears to be attempting to intimidate you with half-truths.
I don’t see my question – please answer this question: