The Servicemembers Civil Relief Act (SCRA) may provide important benefits that can help you. This law protects your financial and legal affairs while you are on active duty military service. Among other things, the SCRA requires your SBA lender to provide you with...
Yes, in accordance with Section 22.151 of the Texas Business Organizations Code (TOB), a nonprofit corporation may have one or more classes of members or it may have no members at all. If the corporation has one or more classes of members, the corporation's...
Section 22.103 of the Texas Business Organizations Code (TBOC) controls. Sec. 22.103 provides that a provision of a certificate of formation of a corporation that is inconsistent with a bylaw controls over the bylaw, except as provided by Subsection (b). And,...
An organization that claims tax-exempt status under section 501(a), but has not yet received an IRS letter recognizing exempt status, is generally required to file an annual exempt organization return . If an annual return is due before the organization has submitted...
That depends. There are several situations where that is entirely permissible. Section 22.102 of the Texas Business Organizations Code (TBOC) controls Section 22.012 provides that: The initial bylaws of a corporation shall be adopted by the corporation's board of...
That depends. There are indeed eligibility factors for financial assistance based on the activities of the owners and the historical operation of the business. As such, the business cannot have been: (a) a business that caused the government to have incurred a loss...
The IRS established rules against excess business holdings intended to keep private foundations from owning a significant stake in a family business. Breaking those rules can have serious consequences for the foundation. Excess Business Holdings Defined: The excess...
The answer depends on whether or not you satisfied your obligations to the federal government. If you signed an Unconditional Personal Guaranty for a commercial loan backed by the Small Business Administration (SBA), then you are responsible for the payment of the...
We have had quite a few clients ask us how a defaulted SBA loan might affect their business dealings with the government. In this post we are going to look at this question from the perspective of a client who has one or more contracts with the federal government...
I just setup a private family foundation. Can I hire a staff to run it? The answer often turns on the size of the foundation assets and its total annual charitable budget. The real question is how much staff you can afford. The IRS mandates an annual charitable...
I just setup a private family foundation. Can I hire a staff to run it? The answer often turns on the size of the foundation assets and its total annual charitable budget. The real question is how much staff you can afford. The IRS mandates an annual charitable...
Yes, it is possible, but the SBA does not have to do so. SBA guidelines do allow a Guarantor to substitute a lien on a new residence in exchange for releasing the lien on the Guarantor's existing residence. However, at a minimum, the following conditions must be...
Yes, this is possible. However, the reverse is not true. Section 10.108 of the Business Organizations Code (BOC) prohibits a Texas nonprofit corporation may not convert to a for-profit entity. If your wish to merge your for-profit entity with a nonprofit, there are...
Generally speaking, yes. Appointing children or other family members as officers or directors is common. This practice makes it possible for your to perpetuate a philanthropic culture within your family and helps to ensure family involvement across multiple...
The SBA Offer-in-Compromise process requires a guarantor to prepare a detailed financial statement and provide very detailed supporting documentation. In fact, the whole process feels a lot like applying for your loan all over again, but is quite the opposite....
The Lender did not do X and my lawyer says that I have rights. I hear something like the above at least twice a week. In nearly all cases a prospective client has been told they have rights, so are their lawyers just wrong? Yes and No. Invariably it is true that the...
Depending on whether you are in a community property state or not, all or part of your income may be liable for the debts of your spouse, even those incurred prior to marriage. However, you personally are not liable for his/her debts. Sometimes that is of small...
In answering our question, we need to know who the intended recipient is and how much the company is proposing to contribute. Both are vital to determine whether a company can receive a charitable contribution deduction of a gift and, if so, how much of a deduction...
The 7(a) loan program is the SBA’s flagship loan guaranty program. In fiscal year (FY) 2013, the 7(a) loan program provided 46,399 federal loan guarantees on approximately $17.9 billion of privately originated small business loans. Congress established the SBA 7(a)...
What is a CDC/504 Loan? The Small Business Administration (SBA) has a loan program know as the "504 program". The 504 program helps small business owners purchase commercial real estate (e.g., a hotel/franchise or a small office building). Unlike the 7(a) program that...
The organizer or organizers of the nonprofit corporation must execute, acknowledge and file the certificate of formation. Under the Texas Business Organizations Code (TBOC), only one organizer is required and the TBOC provides that any person, partnership, association...
Under SOP 50 10 5(f), borrowers may be able to refinance their 504 loan if they meet certain criteria. Although still not as widely known to borrowers as one might expect, as of the January 1, 2014, refinancing has been possible, if: (i) the transaction is used to...
There's no way around it: divorce is stressful. During this often ugly process the soon to be ex-spouses battle it out and in the end arrive at a division of property and debt that they both agree upon. It is on the assumption that this hard-won agreement represents...
We have not filed our IRS Form 990 and its going to be late. What can we do? All three returns — Form 990, Form 990-EZ and Form 990— are due by the 15th day of the 5th month after your organization's accounting period ends. When your organization was setup you...
What is cancellation of debt income? We all understand that if I give someone ten dollars, that's income -- they received cold hard cash. It is a little harder to understand, but if you borrow money, you still receive cash, but it is not income. Why not? Because you...
For a seemingly simple question, the answer can be quite complex. The short answer is, it depends. I am not an immigration lawyer, but I am quite familiar with nonprofits. Current immigration regulations will allow an H-1B visa holder to "work" for anyone other than...
Let's assume you volunteer 6 hours a week in the office of a qualified organization. The receptionist is paid $10 an hour for the same work. It only makes sense that the value of your time is at least $60.00 and a charitable deduction would be available....
According to the IFA’s Economic Impact Study prepared by PricewaterhouseCoopers, from 2001 to 2005 the growth rate of franchise businesses far outperformed other businesses in terms of economic output and job creation. From 2001 to 2005, franchise businesses grew by...
You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. These expenses include the cost of vestments, books, and transportation required in order to serve in the program as...
If you pay a qualified organization more than fair market value for the right to attend a charity ball, banquet, show, sporting event, or other benefit event, you can deduct only the amount that is more than the value of the privileges or other benefits you receive....
Under federal law (31 U.S.C. § 3720D), your employer may not fire you, refuse to employ you, or take any disciplinary action against you because your wages are being garnished.
In the aftermath of hurricanes, floods, earthquakes, wildfires, tornadoes and other disasters, the SBA is the primary source of money from the Federal government for long-term recovery assistance. For disaster damage to private property owned by individuals, families...
Yes, but with some conditions. Under the U.S.Israel income tax treaty, a contribution to an Israeli charitable organization is deductible if and to the extent the contribution would have been treated as a charitable contribution if the organization had been created...
The answer to this question depends on a variety of factors. In Texas, a borrower's homestead may not be pledged as collateral for an SBA business loan and the lender will not seek to do so. However, in many other states this can and does occur. But, generally...
What is Administrative Wage Garnishment? Administrative Wage Garnishment (AWG) is a debt collection process that allows a federal agency to order a non-federal employer to withhold up to 15 percent of an employee's disposable income to pay a non-tax delinquent debt...
Generally, you cannot deduct a charitable contribution of less than your entire interest in property. A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. For example, you own a...
