You saved our bacon. I cannot possibly express the gratitude that I feel in plain words, so just thank you, from the bottom of my heart.
The tide has shifted. The laws are not in your favor. Is your business prepared?
In 2018, the Supreme Court held that state laws permitting taxes against business without physical presence in that state were constitutional. This groundbreaking decision overturned sixteen years of past precedent.
Unbeknownst to many, California passed Revenue and Taxation Code 6203 in 2012. Under the law, businesses with presence in California are obligated and liable for state sales/use tax and potentially state income tax. Many other states have had laws like this on their books for years.
The major issue with the Supreme Court's decision is that it did nothing to address retroactivity. Translation: California's law is valid and your business may have exposure in California since 2012.
The states, short on revenue, have responded to the Court's decision by aggressively targeting out of state businesses. California, in particular, famously went after 4.5m small businesses selling products through Amazon and other online marketplaces.
California faces a 35b budget shortfall this year. It is widely expected that enforcement efforts against out of state businesses will only increase in the current post-coronavirus economy. The laws are complex and ever-changing and small businesses are facing hundreds of thousands or even millions in past tax liability. Do not get caught in the crossfire.
California Faces Budget Shortfall That Could Top $35 Billion
April 16, 2020
Remote-Working From a Different State? Beware of a Tax Surprise
May 29, 2020
Sales-Tax Ruling Strains Small Online Sellers
December 29, 2019
Answer: The window is closing. In light of the risk that your business potentially faces, you need to address this now.
Why us? We are one of the few tax law firms that focuses on multi-state tax issues.
These issues are technical and difficult to address and are a speciality within a speciality within the area of tax law. Very few firms have the experience being on the front lines of this issue and in dealing with the genesis in this area of law. In order to deal with these issues effectively, you need a specialist who understands not just how the law is written, but how it is enforced.
We think like business owners first, not like a lawyers.
At the end of the day, legal decisions must be analyzed within a business framework or they are of little value to an organization. Yes, the laws are harsh and the cost of compliance can seem daunting, but this is where our firm excels. You need a team that can think outside the box and who is similarly focused on cost/benefit, risk/exposure, and can help you weigh the best path moving forward.
We are a nationally recognized local law firm.
What do you get with us? A team small enough to provide individualized and personal service for our clients with the ability to really get to know their business. But little hinges can swing some pretty big doors. Our firm is nationally recognized for excellence in tax law and are often quoted by major media publications. We have a wide range of experience guiding organizations across industries and those who range in size from start-up to hundreds of millions in annual revenue. That lead us in 2018 to be recognized as the 14th fastest growing law firm in the United States.
As I like to say, our tax experience is an inch wide and a mile deep. We only focus on a few select areas in tax, but we have a depth of experience in our chosen areas of practice and in helping navigate the deep and complex waters that exist in this area of law.
I look forward to meeting you, discussing your company's situation, and, at the very least getting you pointed in the right direction.
