Monthly Archives: October 2022

EPISODE 1: 2022 Inflation Reduction Act – Three Federal Tax Implications You Ought to Know About

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Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published October 31, 2022

Overview:

Legal Thoughts is an audiocast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audiocast where the Attorney, Coleman Jackson is being interviewed by Alexis Brewer, Tax Legal Assistant of Coleman Jackson, P.C. The topic of discussion is “The 2022 Inflation Reduction Act — Three Federal Tax Implications You Ought to Know About.” You can listen to this podcast by clicking here:

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

 

TRANSCRIPT:

 

ATTORNEY: Coleman Jackson

LEGAL THOUGHTS

COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

 

ATTORNEY: Coleman Jackson

Welcome to Legal Thoughts

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.

In addition to myself, we have Alexis Brewer – Tax Legal Assistant, Leiliane Godeiro – Litigation Legal Assistant, and Johanna Powell – Tax Legal Assistant.

On today’s “Legal Thoughts” podcast, our Tax Legal Assistant, Alexis Brewer, will be interviewing me on the important topic of: “The 2022 Inflation Reduction Act — Three Federal Tax Implications You Ought to Know About.”

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Hi everyone, my name is Alexis Brewer and I am a Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, Professional Corporation. Our law firm is located at 6060 North Central Expressway, Suite 620, right here in Dallas, Texas.

Good afternoon, Attorney; thank you for agreeing to sit with me as I interview you with respect to this hot tax topic: “The 2022 Inflation Reduction Act — Three Federal Tax Implications You Ought to Know About.”

 

Let’s jump right in,

Question 1: What is The Inflation Reduction Act of 2022 and how did it come about?

 

Attorney Answer – Question 1:

Hello Alexis.

The Inflation Reduction Act of 2022 is a new landmark bill that was passed by Congress & signed into law by President Biden in August 2022.

The Inflation Reduction Act of 2022 (IRA) is the product of many back-and-forth negotiations between the Democrats and Republicans following the failure of President Biden’s Build Back Better bill that was introduced last year.

The law approves more than 700 billion dollars in federal investments aimed at reducing the national deficit, combating climate change, and lowering health care costs, among a number of other stated initiatives.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

That leads me right into my next question –

Question 2: Why is The Inflation Reduction Act of 2022 such a big deal right now?

 

Attorney Answer – Question 2:

That’s a great question.

 

Despite its name, “The Inflation Reduction Act of 2022” addresses more than just the rise in inflation. The Inflation Reduction Act is gaining attention right now because it is a massive bill that addresses many hot button issues.

For example, the Inflation Reduction Act has provisions related to healthcare coverage, capping prescription medication costs, pollution reduction, energy investments, tax code reform and much more.

Today’s podcast will focus on the top three relevant tax provisions predicted to raise revenue under the Inflation Reduction Act.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Question 3: Attorney, what is the first major tax change resulting from the passage of the Inflation Reduction Act?

 

Attorney Answer – Question 3:

The first major tax change under the Inflation Reduction Act is the imposition of a 15% Corporate Alternative Minimum Tax (AMT) on corporations with an annual profit of at least $1 billion.

The Alternative Minimum Tax was originally designed to prevent specific companies from being able to use enough tax breaks to face zero tax liability in a given year while reporting an accounting profit. To combat this problem, Congress decided to calculate the tax using book income rather than taxable income.

This measure is expected to raise over $300 billion in new revenue, providing more than 40% of the bill’s funding.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Wow, that’s a huge portion of expected revenue.

Question 4: What kind of companies are subject to this Alternative Minimum Tax and when will it take effect?

 

Attorney Answer – Question 4:

The 15% Corporate Alternative Minimum Tax only applies to corporations with an average annual adjusted financial statement income of more than $1 billion. Tax experts estimate that around 120-150 corporations will be affected by the Corporate Alternative Minimum Tax annually.

This means the average taxpayer doesn’t need to be concerned.  For the majority of American taxpayers, the number one thing you need to know with respect to the 15% Corporate Alternative Minimum Tax is that:  IT WILL HAVE NO DIRECT IMPACT ON YOU; although corporations impacted might find ways of passing any increased costs of doing business along to consumers of their products and services.

The Corporate Alternative Minimum Tax will be effective after December 31, 2022.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Question no. 5: What is the next major tax provision in The Inflation Reduction Act?

 

Attorney Answer – Question 5:

In addition to the Corporate Alternative Minimum Tax, the Inflation Reduction Act also imposes a 1% Excise Tax on the fair market value of any stock that is repurchased by the corporation during the tax year.

  • The taxable amount is reduced by the fair market value of any stock issued by the repurchasing corporation during the taxable year, including stock issued or provided to employees of the corporation.

There is no minimum threshold, such as gross receipts, market cap, earnings and profits, etc., for the application of the 1% Excise Tax. And the Secretary of the Treasury is authorized to define “repurchase” to include “economically similar” transactions.

This tax will also be effective after December 31, 2022. Again, for the majority of taxpayers, unless they own stock, this Inflation Reduction Act provision will have little to know impact on their lives.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Question no. 6: What is the final major tax change under the Inflation Reduction Act?

 

Attorney Answer – Question 6:

 The Inflation Reduction Act provides the IRS an additional $80 billion over the next 10 years.

The majority of these funds, about 60% of the increased IRS funding, is allocated to IRS enforcement activities, such as:

  • Determining and collecting unpaid taxes
  • Criminal investigations
  • Asset monitoring & compliance investigations

The stated purpose of this Inflation Reduction Act provision is to ensure high-income households & corporations pay their fair share of federal taxes.  This provision for increased IRS enforcement funding is not supposed to increase taxes on taxpayers with taxable incomes under $400,000.

This is what taxpayers should know:  Any additional funding to IRS is going to allow it to more efficiently and effectively collect taxes from whoever owes them regardless whether their taxable income is under $400,000 or over $400,000.

  • Word to the wise: timely file your tax returns when they become due and pay your taxes as you go. It’s likely that the IRS will be updating its processing systems, modernizing its monitoring and forms matching processes, hiring more auditors and examiners and knocking on more doors with this increased funding.

 

Interviewer Wrap-Up

Attorney, thank you for siting with me today to explain the Inflation Reduction Act, specifically the 15% Corporate Alternative Minimum Tax, the 1% Excise Tax and the $80 billion dollars in increased funding allocated to IRS enforcement activities.

Today’s takeaway seems to be that although the Inflation Reduction Act’s 15% Corporate Alternative Minimum Tax and the 1% Excise Tax on stock buy backs might only impact a few taxpayers, it’s very likely that the additional $80 billion allocated to IRS enforcement is very likely to impact lots-and-lots of taxpayers.

To our listeners who want to hear more podcast like this one please subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcast. Take care, everyone! And come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.

English callers:  214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

 

Attorney Closing Remarks

This is the end of today’s Legal Thoughts!

Thank you all for giving us the opportunity to inform you about: “The 2022 Inflation Reduction Act — Three Federal Tax Implications You Out to Know About.”

If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.

Stay tuned!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

EPISODE 2: Starting your first business in Texas – Assumed names use in Texas

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Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published October 17, 2022

Overview:

Legal Thoughts is an audiocast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audiocast where the Attorney, Coleman Jackson is being interviewed by Johana Powell, Tax Legal Assistant of Coleman Jackson, P.C. The topic of discussion is “Starting your first business in Texas: Assumed names use in Texas”.

You can listen to this podcast by clicking here:

 

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

 

TRANSCRIPT:

ATTORNEY: Coleman Jackson

LEGAL THOUGHTS

COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

 

ATTORNEY: Coleman Jackson

Welcome to Legal Thoughts

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.

In addition to myself, we have Alexis Brewer and Johana Powell– Tax Legal Assistants, Leiliane Godeiro – Litigation Legal Assistant.

On today’s “Legal Thoughts” podcast, our Tax Legal Assistant, Alexis Brewer, will be interviewing me on the important topic of: “Starting your first business in Texas: Assumed names use in Texas.”

This is a series of podcasts about how to start your first business in Texas, and this is the second episode.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Hi everyone, my name is Johana Powell and I am a Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, Professional Corporation. Our law firm is located at 6060 North Central Expressway, Suite 620, right here in Dallas, Texas.

Good afternoon, Attorney; thank you for agreeing to sit with me as I interview you with respect to this interesting topic: “Assumed names use in Texas.”

Let’s get started!

Question 1:

Attorney Jackson, in our first episode we talked about business structures and some operational concerns about starting a business in Texas. Now, one of the very first steps when starting a business in Texas is choosing an appropriate name for your business.

What does it mean to do business in an assumed name in Texas?

Attorney Answer – Question 1:

Good afternoon, Johana.

You are certainly right, I did mention in our first episode of this series, “Starting your first business in Texas” that new enterprises must consider certain operational concerns and legal concerns when structuring a Texas business.  I also stated during that first episode that we would leave any discussion of operating a business in Texas in an assumed name to another podcast.  Well, Johana here we are; this is that podcast.   We will discuss what it means to operate a business in Texas using an assumed name in this particular podcast today.

So, Johana, in answer to your first question- “what does it mean to do business in Texas in an assumed name”; let me first point out that an assumed name is not the legal name of the business.  An assumed name is the name used by the business to do business in the State of Texas. An assumed name is often referred to as a “DBA”, which means “doing business as”.  For example, let’s say a certain company’s legal name is “Water All Icy Cold, Limited Liability Company”; and the company do business in Texas as “Mobile Water Cooler Delivered to You”.

Texas Business & Commerce Code, Section 71.101 requires that a company, like our example, who do business under an assumed name in Texas file an assumed name certificate with the Secretary of State, commonly referred to as (“SOS”), if they regularly conduct business or render a professional service in the State of Texas under a name other than their legal name.  Section 71.101 requires filing of an assumed name certificate with the Secretary of State of domestic and foreign corporations, limited liability companies, limited partnerships, limited liability partnerships, and other types of business structures doing business in Texas under a name other than their legal name.

 

INTERVIEWER: Johana Powell, Tax Legal Assistant

Question 2: Attorney, when must the business owners file for an assumed name certificate and what is the effect of the filing?

Attorney Answer – Question 2:

Johana, to avoid harming other businesses and confusion, owners must file for an assumed name in Texas before they start conducting business in this state under the assumed name. The effect of filing for an assumed name certificate is to give notice to the public that the registrant is conducting business under that name. However, the filing of an assumed name does not constitute actual use of the name for determining priority, nor does filing the name with SOS give the registrant a right to use the name when is it contrary to common law, statutory rights of others, violate unfair competition, unfair trade practices, professional ethics rules governing practice of a profession, common law copyright, trademarks or similar laws pursuant to Texas Business & Commerce Code, Section 71.157.

Everyone should respect the rights of others.  Violation of others’ rights can land you into a lawsuit, professional ethics sanctions and huge financial losses.  Business owners should do their due diligence to determine name availability prior to any use of a name in Texas whether it be a legal name or assumed name.  To act otherwise is foolish and could be a violation of civil and criminal laws.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Interviewee’s Comment:  Attorney, that is exactly right everyone should respect other people when conducting their business affairs as well as at all other times.

QUESTION 3:

My third question is this one:  I am just curious on this point; then, if I file my assumed name with SOS, does it mean that no one is allowed to use it?

Attorney Answer – Question 3

Johana that is a very complex question because generally, every business must protect its own intellectual property and good will.

When you file a certificate for an assumed name it only prevents the Secretary of State from filing a subsequent certificate of formation for an entity with a name that the secretary of state determines is not distinguishable in the records. The filing with the Secretary of State is a notice filing, which means that the Secretary of State does not have any authority under Texas law to review the assumed name certificate to determine if the filing conflicts with another name in SOS’ file.

Johana, any dispute or violation involving an assumed name in Texas is probably left to litigation between the private parties sounding in trademark infringement, copyright infringement, deceptive trade practices, tortious interference with contractual relations or some cause of action like these between the private parties in State District Court.

INTERVIEWER: Johana Powell, Tax Legal Assistant

QUESTION 3:

Attorney, what are the steps to file a successful certificate of an assumed name?

Attorney Answer – Question 4:

First, you should determine whether the name you want to file for is available. The Texas Administrative Code, Title 1, Part 4, Chapter 79, Subchapter C sets out a series of rules to determine whether names are distinguishable, the same, or available with consent.

Business Organization Code, Section 5.053, states in part that “the name of a filing entity or a registered series of a Texas LLC or the name under which a foreign filing entity registers to transact business in this state must be distinguishable in the records of the Secretary of State from any existing filing entity, name reservations, or name registrations filed with them”.

Johan, to file for an assumed name certificate with SOS, your legal name must already be registered with the Secretary of State of Texas.

Then and only then, can you file SOS Form 503, a notarized assumed name certificate with Secretary of State.

INTERVIEWER: Johana Powell, Tax Legal Assistant. Wrap-Up

Attorney, thank you for siting with me today in this series of how to prepare on the journey of owning your first business in Texas.  Today’s discussion in our second episode of this series regarding doing business in Texas under an assumed name was very informative.

TAKEAWAY: It seems like there are three take aways here:

  1. You first file business structuring documents with the SOS for your legal name in Texas; and
  2. You may if you choose to, do business in an assumed name if you first file an assumed name certificate with SOS; and
  3. You must perform your due diligence with respect to name availability prior doing business in Texas under an assumed name to respect the rights of other business owners avoid legal issues and potential devastating and costly lawsuits.

This concludes our second episode in our Legal Thoughts podcast’s series called “Starting your first business in Texas”.  This second episode was about ASSUMED NAMES USE IN TEXAS.  We intend to do future podcast dealing with “starting your first business in Texas”; so, this series shall continue!

Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcast.  Everybody takes care!  And come back in about two weeks, for more taxation, contracts, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.

English callers:  214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

Attorney Closing Remarks

This is the end of Legal Thoughts for now!

Thank you for giving us the opportunity to inform you about: “ASSUMED NAMES USE IN TEXAS.”  Remember this is the second episode of series of podcast that we have entitled, “Starting Your First Business in Texas”. Future podcast in this series will likely be published over the next several months.

If you want to see or hear more taxation, contracts litigation and immigration LEGAL THOUGHTS from Coleman Jackson, Professional Corporation.  Subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.

Stay tuned!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

 

FBAR Filing Requirements & Penalties

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Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published October 3, 2022

Overview:

Legal Thoughts is an audiocast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audiocast where the Attorney, Coleman Jackson is being interviewed by Alexis Brewer, Tax Legal Assistant of Coleman Jackson, P.C. The topic of discussion is “FBAR Filing Requirements & Penalties.”

You can listen to this podcast by clicking here:

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

 

TRANSCRIPT:

ATTORNEY: Coleman Jackson

LEGAL THOUGHTS

COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

 

ATTORNEY: Coleman Jackson

Welcome to Legal Thoughts

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.

In addition to myself, we have Alexis Brewer – Tax Legal Assistant, Leiliane Godeiro – Litigation Legal Assistant, Gladys Marcos – Immigration Legal Assistant, and Johanna Powell – Tax Legal Assistant.

On today’s “Legal Thoughts” podcast, our Tax Legal Assistant, Alexis Brewer, will be interviewing me on the important topic of: FBAR filing requirements & penalties.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Hi everyone, my name is Alexis Brewer and I am a Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, Professional Corporation. Our law firm is located at 6060 North Central Expressway, Suite 620, right here in Dallas, Texas.

Good afternoon, Attorney; thank you for agreeing to sit with me as I interview you with respect to this hot tax topic: “FBAR filing requirements & penalties”.

Let’s jump right in,

Question 1: What does FBAR stand for and why was it created?

 

Attorney Answer – Question 1:

Good afternoon, Alexis.

Under the Bank Secrecy Act (BSA), the Department of Treasury was given authority to collect information from a US person who have financial interests in or signature authority over foreign bank and financial accounts. FBAR stands for Foreign Bank Account Report.

The FBAR, or FinCEN Form 114, is an annual report that US persons are required to file if they hold foreign accounts which have a balance exceeding $10,000 at any time during the reporting year in a single account or combination of accounts.

The Report of Foreign Bank and Financial Accounts (FBAR) is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is also a tool used by the United States government to identify persons who may be using foreign financial accounts to circumvent United States law. Information contained in FBARs can be used to identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.

In April 2003, the Financial Crimes and Enforcement Network (FinCEN) delegated enforcement authority regarding the FBAR to the Internal Revenue Service (IRS). The IRS is now responsible for:

  • Investigating possible civil violations;
  • Assessing and collecting civil penalties; and
  • Issuing administrative rulings.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Question 2: What is the FBAR filing requirement?

 

Attorney Answer – Question 2:

That’s a great question.

Under the Bank Secrecy Act, US persons with a financial interest in a financial account in a foreign country are required to keep record of and report such accounts to the U.S. Department of Treasury.

  • “US persons” includes: citizens, residents, corporations, partnerships, limited liability companies, trusts and estates.

A person is treated as having a “financial interest” in any foreign account that the person owns or that is owned by a corporation in which the person has an ownership interest greater than 51%.

FBAR filing is required for foreign financial accounts exceeding $10,000

  • This $10,000 threshold amount is an aggregate amount, meaning it is the value of all foreign accounts combined.
  • If at ANY TIME DURING THE YEAR the cumulative amount of a person’s foreign accounts is more than $10,000, they must file an FBAR.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Question 3: What constitutes an FBAR violation?

 

Attorney Answer – Question 3:

This has been a big question in the courts, but the IRS and the Fifth Circuit Court of Appeals (the federal court that governs Texas) are in agreement.

An FBAR violation is the failure to report a financial account on the FBAR form. It is not the failure to file an FBAR in general.

This means that you can have several FBAR violations in a single year for each financial account you fail to report or improperly report.

For example, if an U.S. person has 25 separate bank accounts exceeding the reporting threshold of $10,000 in 2022 and they fail to file a Form 114 for this period, the IRS and the 5th Circuit Court of Appeals think that this U.S. person has 25 FBAR violations, not one.  FBAR violations are on an account basis not forms basis.  Some of the other Circuit Courts have taken a forms view when imposing FBAR penalties.  The United States Supreme Court has not ruled on this issue although there is a spit in the circuits which means different FBAR violation penalties can be assessed by the IRS depending upon where the U.S. person resides.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Well Attorney, what are the actual penalties for FBAR violations?

 

Attorney Answer – Question 4:

Anyone who is required to file an FBAR and fail to file a complete and accurate FBAR could be subject to civil monetary penalties, criminal prosecution or both.  Civil penalties are inflation adjusted each year; so I am going to skip giving out exact penalty amounts since they would change from year to year.  Criminal penalties for knowingly and willfully filing false FBAR reports can be up to $10,000 fine or five years in prison on both.  Criminal penalties are based on the facts and circumstances and can even be higher.

FBAR Penalties are authorized in the Bank Secrecy Act; 31 U.S.C. 5321.  In addition to the criminal penalties authorized by the law, there are four types of civil monetary penalties for failing to file an FBAR or failing to maintain proper records for the five year required record keeping period as follows:

  • Negligent Violation Penalties up to the maximum amount in 31 Code of Federal Regulation 1010.821;
  • Pattern of Negligent Activity Penalties up to the maximum amount in 31 Code of Federal Regulation 1010.821;
  • Non-Willful Violation up to the maximum amount 31 Code of Federal Regulation 1010.821; and
  • Willful Violation Penalties up to the greater of the amount in 31 Code of Federal Regulation 1010.821, or 50% of the amount in the account at the time of the violation

FBAR filers can also be assessed these criminal and monetary penalties for failure to keep records of foreign accounts for five years from the due date of the FBAR, which is April 15 of the following calendar year.  The types of information that must be kept for 5 years from the due date of the FBAR are records that show–

  • Name in which each foreign account is maintained;
  • Foreign bank account number or identifying number;
  • Name and address of the foreign financial institution;
  • Type of foreign account, such as, savings or checking; and
  • Maximum value of each account during the reporting period.

These records must be presented to the IRS for inspection upon request.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Attorney, you’ve talked about different penalties depending on if the violation was willful or not.

Question no. 5: What does it mean to “willfully” violate FBAR?

 

Attorney Answer – Question 5:

The test for willfulness is an objective standard. What I mean is that the standard is not subjective or what the particular taxpayer knew or thought but what an objective taxpayer in similar circumstances would have known or thought.

Courts will consider whether a person knew or should have known about an “unjustifiably high risk of harm.”

In layman’s language, courts consider whether the taxpayer knew or should’ve known that there was a high risk that an accurate FBAR was not being filed and whether (s)he was in a position to find out for certain with little effort or not.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

You’ve discussed a lot, Attorney.

Question no. 6: In summary, what do listeners need to remember about FBAR filing requirements?

 

Attorney Answer – Question 6:

 Well Alexis our listeners need to remember a few key points:

  1. If you have any type of foreign bank account or multiple foreign bank accounts with balances which exceeds $10,000 or more at ANY POINT DURING THE CALENDAR YEAR, you MUST CHECK TO SEE WHETHER YOU are subject to FBAR and must report such accounts to the Treasury Department. Foreign Accounts are reported to the Financial Crimes Network on April 15th of the following tax period and currently there is an automatic extension to October 15th. Records used to file an FBAR with FINCen must be kept for five years and be made available for inspection if the IRS request them.
  2. If you fail to report any foreign account subject to the FBAR filing requirement, you will be subject to civil and possible criminal penalties depending upon whether the violation was willful or non-willful and upon all the facts and circumstances.
    1. Remember, courts use a very broad definition for willful, and include taxpayers who knew about the FBAR requirement, who should’ve known about the FBAR requirement, and taxpayers who could easily find out about the FBAR requirement.
  3. Lastly, remember FBAR violations are per-account violations for residents living in Texas, Mississippi and Louisiana (states within the 5th Circuit Court of Appeals jurisdiction). This means that taxpayers will be subject to FBAR penalties for each unreported or misreported account. Some other jurisdictions within the United States are per-form violations.

 

Interviewer Wrap-Up

Attorney, thank you for siting with me today to explain FBAR, what the filing requirement is, and what the different penalties are for violations.

It seems like the take away here is that taxpayers need to be aware of their foreign accounts and the cumulative balances to avoid FBAR penalties.

 

To our listeners who want to hear more podcast like this one please subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcast. Take care, everyone! And come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.

English callers:  214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

 

Attorney Closing Remarks

This is the end of today’s Legal Thoughts!

Thank you all for giving us the opportunity to inform you about: “FBAR filing requirements & penalties”

If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.

Stay tuned!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

Misclassifying Gig Workers

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Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published September 5, 2022

Overview:  

Legal Thoughts is an audiocast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audiocast where the Attorney, Coleman Jackson is being interviewed by Alexis Brewer, Tax Legal Assistant of Coleman Jackson, P.C. The topic of discussion is “Misclassifying Gig Workers.” You can listen to this podcast by clicking here:

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

 

TRANSCRIPT:

ATTORNEY: Coleman Jackson

LEGAL THOUGHTS

COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY: Coleman Jackson

Welcome to Legal Thoughts

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.

In addition to myself, we have Alexis Brewer – Tax Legal Assistant, Leiliane Godeiro – Litigation Legal Assistant, Gladys Marcos – Immigration Legal Assistant, and Johanna Powell – Tax Legal Assistant.

On today’s “Legal Thoughts” podcast, our Tax Legal Assistant, Alexis Brewer, will be interviewing me on the important topic of: “Misclassifying Gig Workers.”

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Hi everyone, my name is Alexis Brewer and I am a Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, Professional Corporation. Our law firm is located at 6060 North Central Expressway, Suite 620, right here in Dallas, Texas.

A few weeks ago, we discussed the gig economy and the differing obligations for gig workers depending on if they were classified as an employee or independent contractor. Today, we’re going to continue that discussion from the employer perspective.

Good afternoon, Attorney; thank you for agreeing to sit with me as I interview you with respect to this hot tax topic: “Misclassifying Gig Workers.”

Let’s jump right in,

Question 1: What does it mean to misclassify a worker and how does it happen?

 

Attorney Answer – Question 1:

Hello Alexis.

Employee misclassification is the practice of treating workers as independent contractors, rather than employees.

If you recall from our podcast a few weeks ago where we discussed the tax implications for gig workers, I stated that employers classify workers based on their degree of control and independence in the relationship, using three main categories:

  • Behavioral control
  • Financial control
  • Relationship type

Worker misclassification can be unintentional, but sometimes employers are incentivized to misclassify workers in an attempt to cut costs. When workers are classified as independent contractors, employers avoid complying with payroll withholding and reporting laws; they avoid paying FICA taxes; and they avoid covering the workers under workers compensation and unemployment insurance programs.  All such avoidance is in violation of federal and state tax and labor laws.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

That leads me right into my next question –

Question 2: What are the consequences for employers if a worker is misclassified?

 

Attorney Answer – Question 2:

That’s a great question.

Ultimately, it is the employer who is responsible for correctly classifying workers, so misclassification can lead to a variety of penalties and liabilities for employers.

State Consequences

Within the state of Texas, employers are subject to the Texas Unemployment Compensation Act (TUCA) and are liable to pay unemployment taxes for employees. Misclassification can subject employers to fines and increased taxes and interest charges.

  • If the employer is operating under a government contract, a fine of $200 per worker is assessed for each misclassified worker.

Federal Consequences

Federally, employers are subject to the Fair Labor Standards Act (FLSA) which mandates minimum wage and overtime pay in the United States. Criminal penalties and liability for back wages may be levied against employers and executives who violate this law (whether willfully or not).

There are also federal tax consequences for misclassification. If it is determined that the employee was in fact misclassified, the IRS may require the employer to pay the employer’s share of the FICA tax for the period of misclassification.

On top of this, the employer may also be required to pay the employee’s share of the FICA tax, FUTA tax, and income tax.

  • This is significant because the employer is now having to pay 100% of the payroll tax associated with having an employee rather than splitting that cost with the employee.

If the IRS determines that an employer willfully misclassified their workers, penalties are even greater.

 

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Wow, these are serious penalties.

Question 3: How can employers avoid misclassifying workers? Is there any relief for employers who do misclassify employees?

 

Attorney Answer – Question 3:

Form SS-8

Form SS-8 is the first step to avoid worker misclassification.

If an employer is having trouble determining worker status, or if an employee does not agree with how their employer has classified them, Form SS-8 can be filed with the Internal Revenue Service. Once filed, the IRS will make the ultimate determination on how to classify the worker in question.

  • If the IRS believes an employer has misclassified an employee, employers may be responsible for back-pay.

Section 530 Relief

The IRS has also provided another avenue of relief with Section 530 of the Revenue Act. Section 530 acts as a safe harbor provision, and terminates an employer’s employment tax liability for misclassified workers if three conditions are met:

  1. Reporting consistency;
    1. Employers must have timely filed all required returns consistent with their treatment of the worker as a non-employee. (For example, if the employer claims the worker is an independent contractor, Form 1099 must have been filed for all the taxable years at issue).
    2. If no information return requirement exists for a particular tax period, relief will not be denied on the basis that the return was not filed.
  2. Substantive consistency;
    1. If the employer or predecessor treated the worker, or any worker holding a substantially similar position as an employee at any time after December 31, 1977, the employer will not be eligible for relief from penalties associated with misclassification of workers.
    2. The IRS determines whether to grant relief for misclassification of workers based on all the facts and circumstances. The Service reviews the day-to-day services performed by the worker and compares the job functions performed to those performed by other workers properly classified as employees. The mere fact of similar job titles or categories alone are not sufficient to doom the employer’s request for penalty relief.
  3. Reasonable basis.
    1. The employer must have reasonably relied on one of the following three “safe harbors”: 1) prior audit; 2) judicial precedent; or 3) industry practice.
    2. Employer must have relied on the alleged authority at the time the employment decisions were being made for the periods at issue.

Despite Section 530 being available, few employers actually qualify for relief because they are unable to provide a reasonable basis for misclassifying the employee.

  • Employers who do not qualify for Section 530 relief will be assessed employment taxes (and even trust fund recovery penalties if necessary).

Classification Settlement Program (CSP)

For employers who are under examination but do not qualify for Section 530 relief, they may seek relief under the Classification Settlement Program (CSP). The CSP allows employers to work with IRS examiners and negotiate an agreement to lower their employment tax burden.

  • To qualify for CSP, employers must have reporting consistency. That means that the employer must have timely filed Form 1099 for workers classified as independent contractors.
  • In order for an employer to obtain relief under CSP, the employer must receive a CSP offer from the IRS and agree to prospectively reclassify workers as employees.

Voluntary Classification Settlement Program (VCSP)

The last option available for employers for relief from penalties associated with misclassifying its workers is the Voluntary Classification Settlement Program (VCSP). The VCSP allows employers to voluntarily reclassify workers for future tax periods with limited federal employment tax liability for past non-employee treatment.

  • To qualify for the VCSP, employers must have reporting consistency and cannot be under IRS audit examination.

 

Alexis, to summarize here:

There could be many reasons why employers misclassify workers; it is not always intentional.

However, misclassification of workers is not a victimless infraction or failure to comply with federal and state laws:

  • The misclassified workers are harmed because they are paying self-employment taxes when they should not be paying them. In the long-term, misclassified workers are harmed when they retire and beginning to receive social security benefits since their social security wages are likely understated.
  • The integrity of the overall U.S. tax system is harmed because often times when workers are misclassified the correct amount of tax is not paid; that is, neither the employer nor the worker pay the income taxes which are required to be withheld from employee’s paychecks.
  • The industry and the U.S. economy are harmed when workers are misclassified because unfair advantage can be achieved by those employers who are misclassifying their workers.

 

Interviewer Wrap-Up

Attorney, thank you for siting with me today to explain what it means to misclassify workers, the penalties in place to prevent misclassification, and the available relief for employers who realize they have misclassified their workers. Misclassification of workers as independent contractors when they should be classified as employees is clearly not victimless!

It seems like the take away here is that employers need to be careful and mindful when classifying their workers to avoid all the possible consequences resulting from misclassifying their workforce as independent contractors when they should be classified as employees.

To our listeners who want to hear more podcast like this one please subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcast. Take care, everyone! And come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.

English callers:  214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

 

Attorney Closing Remarks

This is the end of today’s Legal Thoughts!

Thank you all for giving us the opportunity to inform you about: “Misclassifying Gig Workers.”

If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.

Stay tuned!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

EB-3 Visa For Skilled Workers, Unskilled Workers and Professional Workers

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By:  Coleman Jackson, Attorney
Date:  October 11, 2022

EB-3 Visa For Skilled Workers, Unskilled Workers and Professional Workers

ELEGIBILITY

SKILLED WORKERS

PROFESSIONALS

UNSKILLED WORKERS
 Worker must have 2 years of job experience or training Worker must have US bachelor’s degree (or its foreign degree) related to the occupation Worker must be able to perform unskilled labor (less than 2 years of training or experience)
 Not temporary Qualified workers are not available in USA  Not temporary
Post-secondary education may be considered as training  Labor certification Qualified workers are not available in USA
Qualified workers are not available in USA  Full-time job offer  Labor certification
 Labor certification Full-time job offer
 Full-time job offer

EB-3 Skilled workers, entry-level professionals and unskilled workers visa

EB-3 Skilled workers, entry-level professionals and unskilled workers visa is the third preference business visa as described in Immigration and Nationality Act (INA).  Employers who desire to bring foreign workers to the United States under this category of visa must first obtain a labor certification from the United States Department of Labor (DOL) stating that they cannot find any qualified, willing and able U.S. citizens or green card holders to do the job.    The second step an employer must take is to file Form I-140 with United States Citizenship & Immigration Services (USCIS) if the labor certification is approved.  Employers bringing in professional nurses and physical therapist are exempt from obtaining DOL labor certification.

EB-3 visa at the counselor’s office

Finally, the third step a sponsoring employer must take: Upon approval of the preliminary petition by USCIS, the employer must notify the intending worker to apply for an EB-3 visa at the counselor’s office or, in the event the intended worker is already lawfully inside the United States and is eligible to adjust status, the worker must file Form I-485 to adjust status to permanent resident of the United States.  The EB-3 visa is a permanent visa and can ultimately lead to naturalization.

Step by Step to EB-3 Skilled Worker, Professional and Unskilled Worker’s Visa

OBTAIN THE PERMANENT LABOR CERTIFICATION

Step 1.  OBTAIN THE PERMANENT LABOR CERTIFICATION:

This certification allows the employer to hire a foreign worker to work permanently in the United States. The Department of Labor must certify to USCIS that there are not sufficient U.S. workers able, willing, qualified and available to accept the job opportunity in the area of intended employment and that employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

  • APPLICATION FOR PERMANENT EMPLOYMENT CERTIFICATION is filed with the U.S. Department of Labor on – ETA Form 9089
  • Approval validity is 180 days
  • Denied certification means You are done. You cannot lawfully hire the worker(s).

Exception to DOL Labor Certification:

SCHEDULE A OCCUPATIONS (DOL has pre-certified the following occupations, which means that the certification form is sent to USCIS rather than to DOL.)

  • Group I – physical therapists and professional nurses; and
  • Group II – immigrants of exceptional ability in the sciences or arts, including college and university teachers, and immigrants of exceptional ability in the performing arts.

FILE A PRELIIMINARY PETITION FOR PERMANENT FOREIGN WORKER WITH USCIS

Step 2. FILE A PRELIIMINARY PETITION FOR PERMANENT FOREIGN WORKER WITH USCIS:

Employer Due Diligence:  Obtain competent counsel, if you have not already done so since legal matters are rarely as simple as they may seem. This blog is written in simple terms to attempt to communicate to a broad audience.

  • Read the instructions for Form I-140, Immigrant Petition for Alien Workers;
  • Obtain an approved Application for Permanent Labor Certification from the U.S. Department of Labor (DOL), if required for the specific visa category;
  • Complete and sign Form I-140;
  • Pay the filing fee, if applicable;
  • Provide all required evidence and supporting documentation; and

File all appropriate forms and evidence with the appropriate office of USCIS.  Currently, the regular USCIS filing fee for Form I-140 is $700 and the current premium processing fee is $2,500.

EB-3 CATEGORY AND PROCESSING TIMES

Step 3. WAIT PATIENTLY FOR PROCESSING:

CATEGORY AND PROCESSING TIMES

CATEGORY AND PROCESSING TIMES
CATEGORY NEBRASKA TEXAS
Schedule A Nurses 14 months 14 months
Skilled Worker (E31) 17 months 17.5 months
Professional Workers (E32) 17 months 17.5 months
Unskilled Worker or Other Worker (EW3) 12.5 months 17 months

Note:  USCIS processing times varies and may be more or less than these processing times for the EB-3 Visa currently.  There are many factors that could impact processing times and therefore work force and company overall human resource planning is required.

Finally, EB-3 workers may separately file petitions for their spouse and children who are under 21 years of age and unmarried.  Their children can enroll in American schools and their spouse can apply for a work permit.

The main thing to see here is that although the EB-3 skilled worker, professional and unskilled worker’s visa may take awhile to get, it is a clear path to see opportunities for hardworking foreign workers ranging from those working in the professions to those with some skills to those working on jobs that require little to know formal schooling and training at all.  All can begin again and make new lives in the United States since this visa leads to permanent residency.

 

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432 | Portuguese (214) 272-3100

How to lawfully hire temporary non-agricultural workers on a H-2B Visa? | Legal Thoughts

Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published October 5, 2022

Overview:  

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.  

This episode of Legal Thought is a podcast where the Attorney, Coleman Jackson is being interviewed by Gladys Marcos, Immigration Legal Intern at Coleman Jackson, P.C. The topic of discussion is “How to lawfully hire temporary non-agricultural workers on a H-2B Visa?” 

You can listen to this podcast by clicking here:


 

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal thoughts podcast on Apple Podcasts, Google Podcast, Spotify, or wherever you may listen to your podcast.  

 

TRANSCRIPT:  

ATTORNEY: Coleman Jackson  

Legal Thoughts. Coleman Jackson, Attorney and Counselor at Law 

“How to lawfully hire temporary non-agricultural workers on a H-2B Visa”  

Welcome to Immigration Thoughts 

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas.  

Our topic today is: “How to lawfully hire temporary non-agricultural workers on an H2-B visa?  Other members of Coleman Jackson, P.C. are Johanna Powell, Tax Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant, Alexis Brewer, Tax Legal Assistant, and Gladys Marcos, Immigration Legal Assistant.  

On this “Legal Thoughts” podcast our immigration legal assistant, Gladys Marcos will be asking the questions and I will be responding to her questions on this important immigration topic, “How to lawfully hire temporary non-agricultural workers on an H-2B Visa?”  

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

Hello everyone. My name is Gladys Marcos and I am the immigration legal assistant at Coleman Jackson, P.C. Coleman, P.C. is a taxation, litigation and immigration law firm based right here in Dallas, Texas.  

My first question for you attorney is with the U.S. in constant need of workers, is there any immigration program that allows U.S. employers or U.S. agents to bring foreign nationals into the United States to temporarily fill non-agricultural positions.  

ATTORNEY: Coleman Jackson  

Good morning Gladys 

Yes, the H-2B program allows United States employers to fill temporary non-agricultural jobs by filing Form I-129 with USCIS. Non-agricultural jobs include, but are not limited to, the following job categories: construction, landscaping, waiters, waitresses and cooks, retail store clerks, inventory stockers and cashiers, cleaning, repairs, pest control, debris removal, maintenance, hospitality, and similar unskilled labor occupations.   

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

Okay and how does an employer determine whether they are eligible to participate in the H2-B Temporary Non-Agricultural Worker’s Visa?  

ATTORNEY: Coleman Jackson  

An employer must demonstrate to the Department of Labor (DOL) with credible evidence that:  

  1. There are not enough U.S. workers who are able, willing, qualified, and available to do the temporary work; 
  1. Hiring H-2B workers will not adversely affect the wages and working conditions of similarly employed U.S. workers; and  
  1. That the need for foreign workers is temporary. Temporary is measured in the terms of: (1) a one -time occurrence; (2) a seasonable need; (3) a peak load need; or (4) an intermittent need  

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

Thank you for sharing the eligibility criteria. My next question is what are the steps a U.S. employer must take to petition to bring in foreign nationals under the H2-B temporary Non-Agricultural Workers Visa?  

ATTORNEY: Coleman Jackson  

There are three steps that an employer must take to apply an H-2B Visa: 

Step 1: Submit a temporary labor certificate application to the DOL 

Step 2: Submit a Form I-129 to USCIS 

Step 3: Upon receiving an approval notice from USCIS, the employer must notify the prospective worker to apply for an H2-B, non-agricultural visa at the U.S. embassy in their home country  

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

And who eligible to receive a H-2B non-agricultural worker’s visa?  

ATTORNEY: Coleman Jackson 

That is an excellent question, Gladys. Not every country is eligible to participate in the H-2B non-agricultural visa program. Let me explain,  every year, the Department of Homeland Security updates the lost of eligible H2-B visa countries. Employers seeking to hire H2-B unskilled workers in their establishment must review this DHS list to determine which foreign nationals are currently eligible to participate in the H2-B Non-Agricultural Visa Program.  

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

Okay and can workers who are already in the United States receive a H-2B Non-Agricultural Workers Visa?  

ATTORNEY: Coleman Jackson  

If the foreign national is in the U.S. on a non-immigrant employment visa, and a U.S. employer desires to hire the foreign national on a H2-B agriculturalist workers visa, the employer must file Form I-129, Petition for a Non-immigrant Worker. 

Once the I-129 is approved, the employee must file a form I-539 that means that a foreign national must file a I-539 Non-immigrant Change of Status Application to change their non-immigrant visas.  

Per DHS’s March 2021 announcement (pandemic related): Employers will also be able to hire workers who are already lawfully present in the United States in H-2B status without waiting for approval of the new petition, subject to certain conditions that we won’t go into in this particular podcast. We often go into much more detail on topics discussed in our law firm’s blogs; which can be found on our website at www.cjacksonlaw.com.  Our blogs are free of charge. 

Finally, if the foreign national is in the U.S. without documents, they cannot be hired as an H2-B non-agricultural worker, nor can foreign nationals who are here on student visas be hired by an American employer under the H2-B Visa Program. Employers cannot hire individuals here on visitor visas or here on a visa waiver program as an H2-B Non-agricultural Visa. These visa categories that I just mentioned cannot be changed to an H2-B non-agricultural worker visa. 

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

How long can H-2B workers stay in the United States. Additionally, are they able to bring their families? 

ATTORNEY: Coleman Jackson  

Once a worker has been granted an H-2B visa they can remain in the United States for 3 years. When their H-2B Visa expires it cannot be extended or used to change status. During these 3 years, they can bring their spouse and children with them. Reminder: immigration law considers a person a child if they are unmarried and under 21 years of age.) 

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

How is obtaining workers through the H2-B Visa program better than hiring workers as independent contractors? 

ATTORNEY: Coleman Jackson  

This is a very interesting and complex question, but only theoretically because in practice federal and state labor laws are extremely clear on this subject.  So let me first of all say that federal and state law define whether a worker is an employee or an independent contractor.  Whether a worker is properly classified as an employee or independent contractor does not depend on what the parties call the worker.  In both federal labor law and Texas labor law, the critical question is whether the worker is under the direction and control of the employer.  This is commonly referred to as the ‘direction and control’ test or common law test.  In both federal law and Texas law the test consist of about 20 factors.  I will not go into further details, but the significant point that I am making is that workers must be classified in accordance with the law.  Classification of workers as employees or independent contractors is not a decision left to an employer.    

The second point I would like to make at this time is this one: 

Employers have federal tax filing requirements, deposit requirements and withholding requirements for all workers classified as employees. Employers must withhold income taxes from each payment paid to the worker, they must timely deposit withheld funds to the IRS, generally using the EFTPS payment system, and the employer must file timely Form 941 (quarterly payroll tax form) and Form 940 (annual payroll tax form) with the IRS.  Employers must also give employees Form W2 by its due date, and they must file W4 transmittal documents with the Social Security Administration each year.  Moreover all employers must complete and maintain Form I-9 within days of hiring a new worker as an employee where they identify the worker and review the workers eligibility to work lawfully in the United States. Completed Form I-9 must be kept by the employer and are subject to request for examination by the federal government.  There can be severe civil penalties accessed for failure to withhold federal taxes, failure to deposit federal payroll taxes, and failure to file required tax returns.  Likewise severe penalties can be accessed for misclassification of workers. 

As for employer’s responsibilities in Texas; Texas employers must register with the Texas Work Force Commission.  They must file quarterly Unemployment Tax Reports with the TWC and they must otherwise comply with the Texas Labor Code as it relates to employing workers in Texas.  I might note that TWC periodically perform audit examinations in search for misclassification of workers by employers in Texas.  There can be steep cost for misclassification of workers in Texas. 

Employers properly classifying workers as independent contractors are not responsible for their tax liabilities or their tax reporting.  Employers give the independent contractor a Form 1099 at the end of each year. Employers do not have to report payments to independent contractors to the TWC or any other state or local agency within the state of Texas. 

So to summarize my first point:  classification of workers is not a decision employers get to pick out of thin air by simply choosing to classified their workers as employees or independent contractors depending upon whether or not the classification makes them more or less competitive in their marketplace or industry.  As I previously mentioned in awhile ago, misclassification of workers can catch up with you and have severe federal and state consequences if you get caught.  Intentional misclassifications of workers and intentionally hiring workers who are not authorized to work in the United States could expose the organization and individual decision makers within the violating companies in serious legal jeopardy, including criminal prosecution. 

My second point is that hiring unskilled workers in the H2-B program is lawful whereas hiring workers who are not authorized to work in the United States is a violation of I-9 rules and could subject violators to ICE investigations and examinations; and sometimes repeating what has already been said previous might be clarifying.  Like this point; misclassification of workers could have significant federal tax consequences, such as, denial of labor cost during an IRS examination, or huge tax adjustments by TWC examiners during Texas Workforce Commission audits of the employer.  Under some circumstances the IRS and/or TWC could refer the offending employer to each other and/or for prosecution on tax fraud, tax evasion or similar federal and state crimes. 

So to summarize in a nutshell my answer to your question number 5 is this:  the H2-B non-agricultural workers program can be used to lawfully hire workers in non-agricultural jobs in America.  It’s a way of hiring the workers you need to successfully operate your business within the bounds of federal and state law.  Law breakers are responsible for their actions and should be held accountable. 

 

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

Thank you for that insight. My last question is this one: Are there any other things an employer should consider when thinking of using the H2B Visa Program? 

ATTORNEY: Coleman Jackson  

Well I cannot begin to think of everything any particular employer should think of when hiring or considering hiring foreign workers under the H2-B Non-Agricultural Workers Program because it depends on all the facts and circumstances that is not knowable to me right now.  Employers would need to ask precise questions pertaining to them individually. 

With that said, let me just say yes employers do need to know this point in any regardless of what their particular facts or circumstances might be:   the USCIS sets a limit on how many H-2B visas available each fiscal year (October 1-September 30). The USCIS has recently increased this cap to meet the needs of the H-2B program, but even still, there are more employers applying for workers under the H2-B visa program than visas available each year. 

Its important to keep processing times front of mind whenever you are considering filing an I-129 to hire H-2B workers. Plan well ahead of when you will actually need these temporary workers. 

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant  

Attorney thank you for this clear and very important presentation on the H2-B temporary non-agricultural worker visa.  Many American business owners looking for unskilled laborers and foreign nationals interested in coming to the United States to work temporarily are likely to find this information useful. For now, thanks for sitting with me today and answering my questions concerning how U.S. employers can lawfully hire temporary non-agricultural workers on a H-2B non-agricultural workers visa. 

Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever they listen to their podcast.  Everybody take care!  And come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts Podcast from Coleman Jackson, P.C., which is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.   

English callers:  214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100 

ATTORNEY: Coleman Jackson  

This is the end of Legal Thoughts for now. 

Thanks for giving us the opportunity to inform you about : “How to lawfully hire temporary non-agricultural workers on an H-2B Visa?” 

If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Stay tune!  Watch for a new Legal Thoughts Podcast in about two weeks.  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care

Becoming a Citizen of the United States | Legal Thoughts

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Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published September 19, 2022

Becoming a Citizen of the United States

Overview:

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

In this episode of Legal Thoughts the Attorney, Coleman Jackson, is being interviewed by Gladys Marcos, Immigration Legal Intern at Coleman Jackson, P.C. The topic of discussion is Becoming a Citizen of the United States.

You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal thoughts podcast on Apple Podcasts, Google Podcast, Spotify, or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY: Coleman Jackson

Legal Thoughts. Coleman Jackson, Attorney and Counselor at Law

“Becoming a Citizen of the United States”

Welcome to Immigration Thoughts

My name is Coleman Jackson, and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas. Our topic today is: “How to lawfully hire temporary non-agricultural workers on an H2-B visa?  Other members of Coleman Jackson, P.C. are Johanna Powell, Tax Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant, Alexis Brewer, Tax Legal Assistant, and Gladys Marcos, Immigration Legal Assistant.

On this “Legal Thoughts” podcast our immigration legal assistant, Gladys Marcos will be asking the questions and I will be responding to her questions on this important immigration topic, “Becoming a Citizen of the United States”

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

Hello everyone. My name is Gladys Marcos, and I am the immigration legal assistant at Coleman Jackson, P.C. Coleman, P.C. is a taxation, litigation and immigration law firm based right here in Dallas, Texas.

Its been reported that over 9 million immigrants reside in United States as lawful permanent residents.  This mean that they have a lawful status and can remain in the U.S. and lawfully work in the U.S.  Lawful Permanent Residents are otherwise known as green card holders.  Green Cardholders are currently eligible to apply for the United States citizenship. It is widely known in the immigrant communities throughout the country that many immigrants never attempt to become citizens of the U.S.

Attorney, why does so many lawful permanent residents resist becoming citizens of the United States?

ATTORNEY: Coleman Jackson

Good morning, Gladys

Gladys you are absolutely right that millions of immigrants from around the world reside in the United States today as Lawful Permanent Residents. The statistics show that 13.1 million of lawful permanent residents live in United states on January 01, 2021.

As for the reason or reasons why, these immigrants do not become citizens; well, I suspect the reasons are as numerous as the number of immigrants who choose to remain in the LPR status although they are in compliance with the requirements to apply for U.S. citizenship. Let me rattle off some possible reasons as to why these 9 to 13 million or so immigrants choose to remain in the Lawful Permanent Resident status year after year after year:

Fear of the government (remember that many immigrants come here from repressive regimes where government officials and processes are not trusted by the citizenry leaving people leery about approaching the government in search of basic services);

Fear of the long scrutinizing process (remember these immigrants have experienced the intrusive, long, expensive process when they first obtained their Green Cards to begin with);

Fear of their failure on the citizenship exam;

Fear of their satisfying the citizenship requirements and language barriers.

Fear of losing their green card if the citizenship process goes wrong (remember many immigrants are coming from extremely unsettled countries and experiences and feel a lot of comfort receiving their green cards which gives them the lawful right to reside, work and raise families in the United States.  In other words they have obtained more security after becoming lawful permanent residents here than they have ever known at any time anywhere else on earth; so, they simply don’t feel the need to become U.S. citizens.  Citizenship is not a requirement for them to remain in the United States indefinitely.

Fear of losing the connection with their home-countries and its peoples, its traditions and its culture; and

Gladys there are probably many more reasons why immigrants with green cards choose not to become United States citizens

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

Thank you, Coleman. I agree the list can continue and varies by person. My next question for you is What is the importance of obtaining U.S. citizenship?

ATTORNEY: Coleman Jackson

There are numerous advantages to becoming a citizen of the United States.

  1. Certain criminal convictions, and even federal tax delinquencies over $10,000 could aggravated offensives under U.S.C. Chapter 8. Citizens of the United States cannot be deported, whereas, Lawful Permanent Residents can be deported from the United States regardless how long they have held that lawful status in the U.S. Lawful Permanent Residents should seriously consider this advantage when they contemplate whether they should naturalize. Let’s call this advantage, deportation proof.
  2. Green card holders with children under the age of 18 will derive their citizenship automatically when their LPR parents naturalize. Let’s calls this advantage, protection of minors.
  3. S. citizens can file immigration petitions for certain family members which are not available to lawful permanent resident, such as, parents, siblings and married adult sons and daughters. Green card holders cannot file immigrant petitions for any family member in these categories.  Let’s call this advantage, family unification.
  4. Some jobs in the United States are only available for U.S. citizens. These job opportunities might become available when an LPR naturalize.  Let’s call this advantage, expanded job opportunities.
  5. S. citizen can travel abroad without restrictions and seek help and protection at U.S. embassies and consulates around the world. No such connections exist for LPR’s traveling the globe.  Let’s call this advantage, U.S. passport.
  6. S. citizens can vote in federal, state and local elections; thereby, choosing their representatives. Let’s call this advantage, the vote.
  7. S. citizens can hold federal, state and local office; thereby, fully participating in the United States government, with only a few offices out of bound to naturalized citizens. Let’s call this advantage, U.S. citizen.

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

And when is a lawful permanent resident eligible to apply for the citizenship?

ATTORNEY: Coleman Jackson

It depends upon the path that the immigrant took to become a lawful permanent resident to begin with.  For now, let’s say that an immigrant is eligible to apply for U.S. citizenship after they have had their green card from three to five years.  Specific requirements and individual circumstances require conversations with immigrants and their families on a case-by-case basis in the privacy of our law firm.

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

Thank you for those resources. My next question is what are the steps in the process to becoming a United States citizen?

ATTORNEY: Coleman Jackson

  1. You must check whether you are eligible to apply, which includes requirements like: read, write, and speak basic English, know the fundamentals of U.S. history and the form and principles of the U.S. government, be a person of good moral character, be willing to support the Constitution of the United States and be willing to take an oath of allegiance to the United States to name a few.
  2. Once you have determined your eligibility for citizenship; Form N-400 must be prepared filed with USCIS along with all required supporting documentation with the required filing fees.

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

How long does take for a lawful permanent resident to become a citizen of the United States once the N-400 is filed with USCIS?

ATTORNEY: Coleman Jackson

The N-400 processing times depend upon where are the Green Card Holder reside in United States. Some USCIS field offices who process these applications are faster than others. Currently, 80% of the cases filed in Dallas are completed within 15 months. Processing times can be very hard to predict; it requires a lot of patience.

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

And a comment I would like to make is a large and growing percentage of the population in Texas is Hispanic.  A lot of Texas residence are lawful permanent residents who are in compliance with the requirements to become U.S. citizens. Spanish is spoken in many Latino homes, businesses and communities throughout Texas.  Well to be honest, one of the biggest fears about filing for U.S. citizenship is English language.  Failure of the citizenship test is a big fear in the Hispanic community.

What can be done to overcome these English language fears?  I mean fear of failing the test for the citizenship if they do not speak well English?

ATTORNEY: Coleman Jackson

Well, Gladys  I understand.  But let me make very clear here that the English language requirements on the citizenship exam calls for a very basic skill level.  There are many courses offered throughout this area where immigrants can learn basic English skills.  And most importantly as far as the citizenship exam is concerned, U.S. Citizenship and Immigration Services provide study materials and resources for immigrants desiring to naturalize.  Many of these language courses and test can be assessed by going to USCIS website free of charge.

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

When one becomes a citizen there are certain number of rights and responsibilities that come along with that, can you name some of those for us?

ATTORNEY: Coleman Jackson

Americans share the values of freedom, liberty, and equality. By applying for citizenship, you are demonstrating your commitment to United States and our form of government:

  • Support and defend the Constitution of the United States of America.
  • Stay informed of the issues affecting your community.
  • Participate in the democratic process by voting and running for public office.
  • Respect and obey federal, state, and local laws.
  • Respect the rights, beliefs, and opinions of others.
  • Participate in your local community.
  • Pay income and other taxes honestly, and on time, to federal, state, and local authorities.
  • Serve on a jury when called upon.
  • Defend the country if the need should arise.

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

Coleman, you are an Attorney that supports immigration and diversity, what do you want to share with all our subscribers about this topic?

ATTORNEY: Coleman Jackson

That is a brough question. Let me answer it this way: I am an attorney and I do support immigrants and diversity.  Look, people have been immigrating since the beginning of time for all kinds of reasons in search of a better life or perceived better life for themselves and their families.  We all should be kind and show compassion to immigrants because we are all immigrants on our LORD God Almighty’s earth.

We are passing through along with fellow travelers to whom we owe the duty of love. New immigrants may be coming to where you are at the moment, but, none of us should plan to stay here forever.  Today’s focus on division is extremely short-sighted which is functionally blindness.  Let the light shine.

INTERVIEWER: Gladys Marcos, Immigration Legal Assistant

Attorneys thank you for this clear and very important presentation on becoming a citizen of the United States of America.  Many Lawful Permanent Residents are very interested in this interesting topic. For now, thanks for sitting with me and answering my questions today concerning the path of becoming a United States citizen!

Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to their podcast.  Everybody take care!  And come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts Podcast from Coleman Jackson, P.C., which is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.

English callers:  214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

ATTORNEY: Coleman Jackson

This is the end of Legal Thoughts for now.

Thanks for giving us the opportunity to inform you about: “Becoming a Citizen of the United States.”

If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Stay tune!  Watch for a new Legal Thoughts Podcast in about two weeks.  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

EPISODE 1: Starting your first business in Texas | Legal Thoughts

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Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published August 08, 2022

Starting your first business in Texas

Legal Thoughts is an audiocast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audiocast where the Attorney, Coleman Jackson is being interviewed by Johana Powell, Tax Legal Assistant of Coleman Jackson, P.C. The topic of discussion is “Starting your first business in Texas”. You can listen to this podcast by clicking here:

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

TRANSCRIPT:
ATTORNEY: Coleman Jackson
LEGAL THOUGHTS
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY: Coleman Jackson

Welcome to Legal Thoughts

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.

In addition to myself, we have Alexis Brewer – Tax Legal Assistant, Leiliane Godeiro – Litigation Legal Assistant, Gladys Marcos – Immigration Legal Assistant, and Johana Powell – Tax Legal Assistant.

On today’s “Legal Thoughts” podcast, our Tax Legal Assistant, Alexis Brewer, will be interviewing me on the important topic of: “Starting your first business in Texas.”

This is a series of podcasts about how to start your first business in Texas, and this is the first episode.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Hi everyone, my name is Johana Powell and I am a Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, Professional Corporation. Our law firm is located at 6060 North Central Expressway, Suite 620, right here in Dallas, Texas.

Good afternoon, Attorney; thank you for agreeing to sit with me as I interview you with respect to this interesting topic: “Starting your first business in Texas.”

Let’s jump right into this!

Question 1: Attorney would be business entrepreneurs have the resources to invest, want to invest and want to start their own businesses in Texas, but have lots and lots of questions about how to start a business in Texas.

What do you think about this Attorney?

Attorney Answer – Question 1:

Good afternoon, Johana.

Businesses in Texas can operate in several different entity structures, such as, Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Company, and Corporation.

The choice of entity selection involves a number of legal and operational concerns and should be made in consultation with a lawyer, accountant, and possibly an insurance agent and banker depending upon the type of activities that is intended to be conducted in the state of Texas.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Question 2: Attorney what types of legal and operational concerns are you talking about?

Attorney Answer – Question 2:

Johana, that is an excellent continuation question because it allows me to expand on my answer and explain why counsel and professional advice is so important when starting a business in Texas.

  1. Organizers intending to start businesses in Texas must consider the following legal and operational factors;
  2. The federal, state and local business tax structure in the State of Texas (Texas does not have income taxes, but does have sales taxes, property taxes and franchise taxes);
  3. The ease of formation and the startup cost of starting a business in the State;
  4. The accounting and operational requirements for operating a business in the State (The Texas Tax Code requires all businesses operating in the state to keep contemporaneous books and records, to maintain them for 4 years and make them available for inspection and audit examination at the request of the Texas Comptroller of Public Accounts);
  5. The rules and regulations governing the term of operations and rules governing winding down operations within the State (The Texas Business Organization Code governs business structuring matters within the State);
  6. The personal liability concerns for operating a business in the State;
  7. The special requirements, such as, licensing requirements for operating certain types of businesses within the State; and
  8. The unique requirements that might apply to government contractors if the business intends to sale goods and services to the federal, state or local government or to government agencies.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Attorney my next question is what happens if a business entrepreneur already has a business running but no paperwork filed with the State?

Attorney Answer – Question 3:

Johana that is a very complex question because it depends upon whether the business is structured outside of our state and is coming into Texas to do business or whether the business started in Texas but simply did not file any documents with the Secretary of State.  Let me first point out that out of state businesses doing business in Texas must register with the Secretary of State’s Office.  Let me also point out that the default form of business entity is a sole proprietorship when there is only one owner; and, when there are two or more owners; the default entity is a general partnership.  I will not address the various federal tax elections that might be available for businesses.  Let’s leave that discussion to another episode of “Starting Your First Business in Texas.”  Those starting or thinking about starting businesses in Texas should consult with legal counsel to avoid making legal mistakes when starting their first business enterprise in Texas.  Business structuring in Texas is a complicated legal issue which could expose those operating businesses within Texas without following the rules to serious civil and even criminal consequences.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Oh I see; it sounds like you are saying that a lot of complex business and tax laws are at play when starting a business in Texas.  My next question is this one:

Question 4: What is the difference and the advantages between all the business structures that you mentioned previously?

Attorney Answer – Question 4:

The main differences in the business structures that I mentioned earlier in our discussions in this ‘episode one’ on the topic “Starting Your First Business In Texas” are the liability and the tax concerns. Regarding the liability concerns; in a sole proprietorship and a partnership which are structures that are not incorporated, the owners of these two entity types do not enjoy liability protection for the acts of the business entity.  What I mean by that is that the owners’ personal assets are exposed to the liabilities incurred in the business.  As for the liability concerns for owners of corporations and limited liability companies, the owners of those type business structures are limited.  What I mean by that is that the owners are not personally liable for the debts of the business entity, unless they personally guarantee those business debts.  However, a general partner in a Limited Liability Partnership is personally liable for the debts of the limited partnership whether they guarantee the business debts or not.  In the Limited Partnership only limited partners enjoy liability protection.
Now with respect to the tax differences between these various business entities we are discussing here today, generally it is more favorable to structure a business as a Limited Liability Company or corporation.

Let me point out that non-profit businesses must register as such in the State and with the U.S. Treasury and meet state and federal tax requirements to be recognized as non-profit entities in this State and for federal tax purposes; otherwise, a business cannot operate as a non-profit entity in the State of Texas.

Johana this is an extremely complex question as to what constitutes advantages or disadvantages between the choice of entity selection.  Determining what type of business structure best fits any particular entrepreneur’s goals and objectives requires a conversation with a lawyer.  Many businesses law, contract law and tax law questions need to be discussed when determining what entity fits best to achieve the goals of the new business owner.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Question 5: When a business entrepreneur is ready to do the paperwork what is the first thing they have to do?

Attorney Answer – Question 5:

It depends upon what type of business they decide to form.  Remember a sole proprietorship and general partnership can for formed in Texas without filing any paperwork with the Secretary of State’s Office.  For now Johana, let’s just leave any discussion concerning operating a business in Texas under an assumed name for another episode in this series.

The organizer of any business entity in Texas must first check on name availability with the Secretary of State’s office (this is a must first step with all the business entity types that we have discussed today because you cannot infringe on the trade marks or rights of other businesses in Texas by using a name that creates confusion in the market place.)  For those types of business entities who must file organizational papers with the Secretary of State, for example, limited liability company, and corporation to name a couple; the organizer must file organizational documents compliant with the Texas Business Organization Code.  The business should request an Employer Identification Number from the U.S. Treasury if they intend to hire employees and register with the Texas Workforce Commission, and obtain a Texas Sales Tax Permit if the Texas Tax Code requires it. The Comptroller is notified whenever a business files organizational documents with the Secretary of State’s Office.  Franchise tax reports must be filed for all businesses who are required to file organizational documents.  Johana again we don’t want to make this podcast episode too long; we like to keep our podcast to about 20 minutes each; but we can discuss all of these individual topics in separate bite-size episodes so that our audience and understand these things.

Let me clarify that there are different requirements for each structure of business and our listener’s should subscribe to our Legal Thoughts Podcast if they are interested in this topic or anything dealing with international, federal and state taxation, contracts, litigation or immigration legal matters.  Legal  Thoughts Podcast is published bi-weekly on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcasts.

INTERVIEWER: Johana Powell, Tax Legal Assistant. Wrap-Up

Attorney, thank you for siting with me today to explain how to prepare in the journey of owning your first business.

TAKEAWAY: It seems like the overall idea here is that selecting the best entity structure to conduct a business in Texas is complex and has many tax, operational and legal issues that entrepreneurs starting a business in Texas should consider and discuss with their legal counsel prior to investing a dollar.  It is kind of like plan your trip before you start driving; otherwise, you might be delayed getting to your destination and possibly not arriving there at all.

I am glad this topic “Starting a Business in Texas” is going to be a series of podcast where we will discuss other aspects to starting a Texas businesses.  That is super Attorney!

  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcast. Everybody take care!  And come back in about two weeks, for more taxation, contracts, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.
  • English callers: 214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

Attorney Closing Remarks

This is the end of today’s Legal Thoughts!

Thank you all for giving us the opportunity to inform you about: “Starting your first business in Texas.”  Remember this is the first episode of Starting Your First Business in Texas.

If you want to see or hear more taxation, contract litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.

Stay tuned!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.