Texas Rules That Tee Time Reservation App Is a Taxable Data Processing Service

A recent Texas decision ruled that the taxpayer’s tee time reservation app constituted taxable data processing services and that sales was tax due on the barter transaction with its golf course customers, highlighting the sales tax complications that can arise when a third party technology gets involved in transactions that were traditionally between a buyer…

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LLC Operating Agreement Can Terminate an S Corporation Election

Limited liability companies (LLC) should be careful that their operating agreement does not contain language that violates the criteria required to make a small business corporation (S corporation) election. LLCs should also make sure the agreement does not contain language in any amendments or restatements that would cause an S corporation election to automatically terminate.…

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Starting a Private Foundation

Private foundations are independent legal entities that are typically funded by individuals, groups, or businesses. A person might want to start a foundation for various reasons: to be philanthropic, to expand their brand, to expand giving opportunities, and to take advantage of tax laws. When creating a private foundation, the first step is to define…

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The Truth About Interim Rate Variance Invoices

Many government contractors assume that interim rate variance invoices should be prepared once the incurred costs are submitted and rates are settled with Defense Contract Audit Agency (DCAA), other cognizant audit agency, or an administrative contracting officer (ACO). However, both of these assumptions are not true. The best time to prepare interim rate variance invoices…

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