Request a Risk Assessment

At Brotman Law, all we do is tax. We get our clients out of trouble, we keep them out of trouble, and help them optimize their tax situations to save a bunch of money through our process. 

What to expect:

  • A member of our client concierge team will contact you to go through our intake process. We take a deposit to hold your meeting on our calendar. 
  • You will receive a short stress test for your business through a short, confidential questionnaire.  
  • You will receive a 60 minute risk assessment and tax strategy session with our senior legal team. 
  • You will walk out of that meeting with confidence or with a written game plan to fix the issues in your business. 
  • There is zero further obligation to our firm. If you are not satisfied, we will issue you a 110% refund of your deposit. 

Q1

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.

Q2

Mike S.

Satisfied Client

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. 

 

Bloomberg

California Faces Budget Shortfall That Could Top $35 Billion

April 16, 2020

The Wall Street

Remote-Working From a Different State? Beware of a Tax Surprise

May 29, 2020

The Wall Street

Sales-Tax Ruling Strains Small Online Sellers

December 29, 2019

Multi-state tax laws create liability for your business.
Rather than ignore the problem, how about you get a plan in place?

Let us break this down:
You are a small business outside of California…

If you have any inventory or store property in California, even through a 3rd party, you have likely created nexus and will owe tax to California.

This was the key issue involving that do business through Amazon and other marketplace facilitators. The California Department of Tax and Fee Administration held under Revenue and Taxation Code 6203 that the storage of property in California is a nexus creating activity, even if it involved a 3rd party and even if that business did not physically move its inventory into California. This has broad impacts for retailers, wholesalers, distributors and manufacturers.

If you have an employee, independent contractor, agent, vendor, or engage with a variety of parties in California, you have likely created nexus and will owe tax to California.

The mere presence of any of these individuals in the state of California can constitute doing business here and can avail you to California's tax laws. This is true even if their presence in the state is only temporary or transitory, if you do not consider them doing business here, or if their presence in the state is largely unrelated to their activities for your company. One of the biggest problems with nexus creating activities, particularly surrounding employees, is that the smallest activity can bind the entire conduct of a much larger organization. 

If you cross a certain threshold of sales to California residents, even without physical presence, engage in "drop shipping," pay compensation to those who sell or promote your products in California, you have likely created nexus and will owe tax to California.

This was the issue in the Supreme Court's decision in Wayfair v. South Dakota. In spite of a lack of contact with the state, the Court held that companies need not have a physical connection with a state to subject themselves to tax here. The broader issue is that the states, including California, have expanded this concept to include a variety of activities, which on their face may not seem like they subject your company to tax jurisdiction here. 

Chances are California is not your only problem. Chances are that this may be the tip of the iceberg when it comes to your multi-state tax exposure.

California may be one of the most aggressive, if not the most aggressive state against out-of-state businesses, but do not make the mistakes and think that similar states do not have laws on their books similar to California. The problem is that each state may do things differently or may have different interpretations when it comes to the activities and tax exposure of your business. Additionally, the laws are confusing, complex, and ever-changing. 

Now ask yourself…

How much trouble could you be in?

What would you do if asked to pay all your delinquent tax obligations back, plus penalties and interest?

What steps have you taken to make sure that you will not be caught next?

Answer: The window is closing. In light of the risk that your business potentially faces, you need to address this now.

Request a free consultation
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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. 

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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. 

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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.

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Sam Brotman, On Behalf of Brotman Law

We stand by our values

Fight for Our Clients

We fight for our clients and protect our clients no matter how great the odds or insurmountable the problem seems. Tax matters take skill and strategy, but also require tenacity in certain circumstances to get the job done. At Brotman Law, we think outside the box and keep our eye on your goal. Being bold often yields the best results for our clients. 

Meet People Where They Are

People do business with people. We believe our firm embodies the firm that we would want to do business with ourselves if we had a tax issue in need of resolution. Our team treats all people with respect, empathy, and compassion. We want to meet you where you are, no matter what level, and work to get you where you want to be. 

Be a Grown-Up

At Brotman Law, everybody does their job up and down the chain of command. Egos are left at the door. We deliver on all our commitments to our clients, to our team, and to ourselves. We take 100% personal responsibility for our actions and own our mistakes when we make them. Honesty and integrity are engrained in our culture.

Be the Anti-Lawyer

What do you call 1000 lawyers swimming at the bottom of the ocean? A good start. We strive to correct the worst stereotypes and ills of our chosen professional. Being a lawyer does not put you on a pedestal. Our team members are authentic, easy to communicate, and real. We have lives and families outside of the office and are human beings while we are in it. 

Request a Risk Assessment

At Brotman Law, all we do is tax. We get our clients out of trouble, we keep them out of trouble, and help them optimize their tax situations to save a bunch of money through our process. 

What to expect:

  • A member of our client concierge team will contact you to go through our intake process. We take a deposit to hold your meeting on our calendar. 
  • You will receive a short stress test for your business through a short, confidential questionnaire.  
  • You will receive a 60 minute risk assessment and tax strategy session with our senior legal team. 
  • You will walk out of that meeting with confidence or with a written game plan to fix the issues in your business. 
  • There is zero further obligation to our firm. If you are not satisfied, we will issue you a 110% refund of your deposit.