There are four main types of business entities you can choose from: sole proprietorship, partnership, corporation, and limited liability company (“LLC”). In determining which entity is best for you, there are numerous things you should consider, such as, legal liability, tax implications, cost of formation and ongoing administration, flexibility, and future needs. There are advantages and disadvantages to each.
A Criminal Record Can Block You From Living Your Life.
A conviction for even a minor criminal offense (like marijuana possession) can mean a life sentence of sorts. Your criminal record can block you from getting a job, attending school, voting, borrowing money, obtaining certain licenses, and qualifying for certain services for your family.
It is a real problem, affecting many people. In 2018 alone, 663,367 people were arrested for cannabis-related offenses (40% of all U.S. drug arrests). But relief is on the way for some under New York’s new Marijuana Regulation and Taxation Act (MRTA), recently signed into law by Governor Andrew Cuomo. A somewhat overlooked provision of the MRTA provides for automatic expungement (erasing) of records for individuals with previous convictions that are no longer crimes. Additionally, the MRTA provides the ability to reduce certain sentences, meaning an individual’s felony conviction can be reduced to a misdemeanor.
On December 21, 2020, the U.S. Congress passed an appropriations bill which continues the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and provides other forms of assistance for small businesses impacted by Covid-19.
The U.S. Treasury Department and Internal Revenue Service (“IRS”) released guidance which reiterates and clarifies the tax treatment of expenses where a PPP loan has not been forgiven by the end of the year the loan was received. Taxpayers cannot claim a deduction for any deductible expense if the payment of the expense results in forgiveness of a PPP loan because the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) specifically excludes income associated with the loan forgiveness.
COVID-19’s Impact on Contractual Relationships and Obligations
In follow up to a previous discussion on force majeure provisions, we reviewed how Coronavirus will affect contractual relationships and obligations. The unique nature of the COVID-19 pandemic has thrust all of America into uncertainty. Relying on Act of God language to exempt you from your legal responsibilities might not be a sure bet, even if you believe you have a convincing case. Taking steps to connect with contract partners might be a better way to reach a resolution that recognizes the harm that was done and modifies certain rights and obligations. By working with a skilled business lawyer, you might be able to avoid a significant conflict over how force majeure is defined in your situation. If a compromise cannot be reached, your attorney can assist you in ascertaining whether you might succeed in a legal action.
On October 8, 2020, the Small Business Association (“SBA”) and United States Treasury Department took a smaller step toward simplification of the application process for Paycheck Protection Program (“PPP”) borrowers, and their lenders, on loans of $50,000 or less.
Have you considered starting a business during the Coronavirus Pandemic?
The Empire State Development Corporation (the "ESDC") issued further guidance to inform businesses in New York State whether they are an “essential business” or if they are subject to the current workforce reduction mandate issued by Governor Cuomo.
By the ‘New York State on PAUSE’ Executive Order, Governor Cuomo directed that by Sunday, March 22, 2020, at 8:00 p.m., all businesses and not-for-profit entities in New York State shall reduce their in-person workforce at each individual business/work location within the state by 100%. For the purpose of this Executive Order, the ESDC provided the following additional guidance on what "Essential Business" means:
On June 14, 2019, Governor Andrew Cuomo signed the Housing Stability and Protection Act of 2019 effectively codifying a new era in the State’s landlord-tenant regime. As the name suggests, the law puts into effect widespread regulation aimed at protecting and promoting tenants’ rights. If you are a landlord, this Act may have you wondering how these changes may affect your business dealings going forward. In short, many aspects of prior leases may need to be revisited, revised or scrapped altogether to ensure full compliance with the new regulatory landscape.
The Internet has transformed the national economy in recent years as America has gradually become a nation of online shoppers. E-commerce offers a number of appealing perks: low prices, stay-at-home convenience, a myriad of choices, and—until now—sales tax-free purchasing.