Am I a taxable business? I work for a company based in Massachusetts but I work off site in Connecticut. I rent an office to work from in the town where I live because I don't have adequate space for a home office. Recently, the town tax appraiser became aware of my existence and concluded that I am a taxable business. The result was they decided I personally had $9000 worth of taxable business assets and sent me an assessment notice. That number is ridiculously wrong but I don't want to dispute amounts. I don't believe I'm taxable at all. A phone call to the tax assessor's office resulted in the conclusion that my only option is to file an assessment appeal. Well, my appeal would be something along the lines of "I am not a business. I'm just an employee paying for office space and I'm therefore not taxable." But when I plow through the CT tax statutes, I can't find the definition of who is actually taxable as a business. There's just too much law there. How can I figure out whether my intended defense works? Paying for legal advice will certainly be more expensive than the taxes involved, so that's not an option.
Offices are normally rented by businesses, so for the tax appraiser, your situation would be quite out of the ordinary. They appear to be stone deaf to the idea that an office may be rented not for business purposes, and so they lump all office renters together. If they do not want to hear you, all you can do is to keep evidence that: You are an employee; You attempted to tell them that you are not liable for the tax because you are not a business — and present that should they ever attempt to prosecute you for tax evasion or similar. Specifically, do: Keep your employment contract, communication with your bosses telling you what to do and records of them paying your taxes; Send a formal letter (not an appeal) to the tax appraiser explaining the situation Should the issue ever be escalated, they will not be able to prove that you were a contractor/business (let alone beyond reasonable doubt), and you will be able to recover costs associated with this headache.
First of all, if your Delaware LLC earns money, you will pay tax in America on that money. America still taxes "foreigners" on American income, just not on"global" income. That is, unless the U.S. has a tax reciprocity treaty with your home country, Malaysia. I don't know about Malaysian law, but I am writing as an American about American law regarding the Seychelles (and I am not a lawyer). The following is only as an "example." If you set up an LLC in the Seychelles, you could, in theory, avoid American tax by accruing income there. In practice, if you did nothing but "banking" in the Seychelles, America would look at your lack of "value added" there, and could tax you on Seychelles income as if your corporation was American. The way to make such a claim stick (typically in a place like Ireland), is to set up a manufacturing or operating facility (e.g. call center) there so that you were shipping goods or services from your offshore operation. Then you'd have a strong claim in America that your operation actually earned most of its income abroad, and the U.S. company was just a holding company.
As the sole director and shareholder, the cleanest approach is to pay the invoice from the company account as if it were issued to the company's name. This way, you don't need to keep records (such as a director's loan account) to explain why the company is claiming a deduction for expenses paid from your personal account, and you are not paying income tax on the reimbursement. The problem with this approach, and the reason why larger companies don't use it, is that you now need to be able to prove that the invoice relates to a legitimate business expense. For a one-person company, that will usually be pretty obvious from the nature of the expenses and if not, you'll remember what happened, but this does not scale up for businesses with employees claiming reimbursement.
Good news: it behaves like a legal entity. An estate is a collection of assets and liabilities that belonged to the deceased. The collection behaves a great deal like an LLC or other legal entity, although states don't call it that. The collection is isolated from anyone else's collection of assets and liabilities. For instance, it's not part of the executor's personal assets, nor liabilities. That's very important because... If the collection is sued e.g. by a creditor, the suit can only make claims against assets in the &quot;collection&quot;. That is to say, the executor's own assets are not at risk. That's very important if you're thinking about volunteering to become an executor or manager of a trust. You can do so without fear of personal liability. Asterisk here *, but don't panic, it's a harmless asterisk. The collection can buy and sell goods and services (more the latter generally). A typical service purchased by an estate is storage unit rental. The collection can hire, fire and generally do business. Consider an estate which owns an apartment building. Life goes on: rent must be collected, utilities paid, leaky toilets fixed, contractors and managers hired and fired. In this case, the estate is a going-concern business behaving a lot like an LLC. The collection/estate could potentially do business indefinitely, if the will of the heirs is to continue doing so. This might happen if splitting the assets equitably amongst the heirs wasn't possible (e.g. the estate of Leonard Cohen collects a lot of royalties)... or too complex to easily back out of (say: the deceased owned 5 McDonalds franchises and had bet the farm on opening two more; backing out now would bankrupt the estate, so the estate might oddly open two McDonalds.) The collection can also sue, and proceeds from the suit or settlement go into the collection. Asterisk again. * The collection has its own Taxpayer Identification Number (aka SSN or EIN). The collection files its own 1040 tax form, and may do so for years or even decades. The point of all these practical examples is that an estate looks, walks and quacks like a &quot;legal entity&quot;. To the point where the IRS even calls it one. And to a boots-on-ground executor, manager or trustee, the reality is it handles like a legal entity, and the experience you have managing legal entities will largely apply, almost in full. Almost. * Now, that asterisk. Due to state court rules in many states, if you attempt to sue an estate, you have to use the right name. And that's what this question is all about. It's a naming convention, and that is all. And courts treat it as such. Take Roe v. Wade. &quot;Roe&quot; is an adaption of &quot;Doe&quot; as in &quot;John Doe&quot;. Wade, however, was the district attorney of Dallas County at the time of filing. Wade wasn't being sued personally. It's just the quirky naming convention the court uses. What you have identified is a similar quirk in court rules, where instead of suing Estate of John Q. Example, the syntactically correct thing is to sue Jane Doe, in the capacity of, Executor of John Q Example's estate. And the italic parts are optional, because the court knows that. Why is this important? It's not important, and that's what the Florida Court of Appeals said in florida Spradley v Spradley 213 So. 3d 1042 (Fla. Dist. Ct. App. 2017. The plaintiff had made exactly the above error: suing &quot;the estate of&quot; instead of suing &quot;Derreck Spradley et.al. (implied: in their capacity as executor)&quot;. The judge threw out the case, saying in essence &quot;You forgot to &quot;dot an i&quot;. The appeals court said no, the distinction is trivial and the court should have simply let the brother &quot;dot their i&quot; and continue with an entirely valid case. In other words, it was a distinction without a difference. So if sued, the executor should not panic about being &quot;named personally&quot; in the suit - you're not personally liable. And it is a waste of time to pick nits over how the name of the defendant is spelled, so says the Florida court at least... and in my humble opinion that precedent would be well received in other state courts, as it avoids wasting docket time and citizen filing fees on an action that will simply be re-filed correctly the next day. Not a license to cheat, however. One way an executor can manage to create personal liability is to abuse or mishandle the role with extreme negligence. In that case, yes, the executor's personal assets could come under fire, basically as punishment for misdeeds. An executor who is careful, honest and gets help when needed won't have any trouble at all.
In general, you cannot neither change contracts nor restrict/nullify other people's rights by your acts alone. The people who hired you personally have a contract with you, not with your LLC. So, if someone has a claim against you, then their claim should not be contingent of your LLC going bankrupt or not; they have a right to have their damages restored by you (who was the entity they hired). Otherwise, fraud/liability delinquency would be trivial: get debts on your name and, when the things get difficult, create a shell LLC and let it go bankrupt.
I've litigated cases like these before. The IRS enforcement reaction is swift and severe. Penalties for the employer are heavy and rarely waived. It would be rare for a business like this to stay operational long enough to issue a W-2. A business like this would probably be shut down by the IRS and have the people responsible for the payroll function, at a minimum, promptly burdened with tax liens, within four to six months. These cases also constitute a significant share of all criminal tax prosecutions. The odds of someone doing this spending several years in federal prison is high. Generally speaking, if the wrongdoing is fully on the part of the employer without the collusion or knowledge of the employee, the IRS will not force the employee to double pay the taxes that should have been withheld by the employer in this situation. Instead, this IRS will try to recover the amounts that were withheld from the employees but not delivered to the IRS. It will seek to recover these amounts from the employer and also from other responsible persons in the organization (and from outsourced professionals) with the authority to pay the IRS who did not do so. There may be circumstances, if push comes to shove, where the IRS could collect from the employees in a case like this one (I've never had occasion to need to research that issue), but that would be the rare exception and not the rule, in practice. On the other hand, if the employer simply does not withhold taxes or prepare W-2s at all, and either 1099s people who should have been classified as employees (or files no information tax returns at all), the IRS will generally insist that the employee pay income taxes on the full amount owed and that they pay the employee part of payroll taxes. It will also pursue the employer for the employer's share of payroll taxes. The employer will also be jointly and severally liable for any taxes that should have been reported and subjected to withholding that are not paid by the employee (perhaps because the employee spent all the money). Sometimes cases like this are also criminally prosecuted, but it is less common to do so.
Unless your contract, whether individual or collective, has a clause requiring this compensation you are out of luck. Sometimes one of the “benefits” for a company’s move is to leave behind workers who are not 100% committed to the company in that they would not move or commute a long way to keep their job. 30 miles isn’t very unusual where I live. In the U.S. most employment is on an "at will" basis. That means you can quit anytime you like without notice and you can be fired at any time for almost any reason or no reason, as long as the reason is not one of the protected reasons.
Yes; While contracts can be made in written and oral form bigger acquisitions normally are in written form. Also consider this: They can't prove that they told you that the balcony is not usable. Thats a big negative in buying a property and they would need to have it documented. If they still refuse consider seeking professional help. In my country lawyers offer "fast help" that isn't legally binding but costs you only 10$ and helps you finding out if your case has any possibility to get accepted/if you're right. EDIT: Regarding the reservation fee: You can dismiss that. You didn't reserved that object, you reserved a house with balcony.