The answer is it depends, as a business owner, on what your goals and objectives are. Both LLCs and S corporations are tax efficient. LLCs and S corporations are both pass-through entities; meaning, generally speaking, the entity itself is not subject to taxation. Rather, the profits and losses flow through to the owners, who either pay taxes on the profits or get to use the losses to offset income. Both LLCs and S corporations protect the owners and management against . . . Read More
Unlike other sole source authorities for small business programs, such as that recently granted to the WOSB program via the 2015 NDAA, a recent decision from GAO confirms that the sole source authority given to the 8(a) program has very few limits, especially with regard to Tribally-owned entities or Alaska Native Corporations. In the case of Agency Management Concepts, Inc., B-411206 (April 21, 2015), the Department of State (“DOS”) sought to sole source a contract for lock services to a . . . Read More
Small businesses often enter into government contracts unaware of all the laws and regulations that may apply when selling to the government. One of the laws that is often overlooked is the Trade Agreement Act (TAA). Under the TAA, certain products that are sold to the U.S. Government must originate either in the United States or in one of the countries with which the United States has a special trade agreement. Because of the TAA, small businesses selling goods to . . . Read More
By Kimi Murakami Recently, tax-exempt organizations have inquired whether it was legally permissible to establish a for-profit subsidiary to perform profitable work developed by the non-profit parent. The answer is yes. Like for-profit corporate entities, non-profit organizations are formed at the state level similar to forming for-profit corporate entities. To become tax exempt, once the corporate entity is recognized by the state, it must apply to the IRS to obtain tax-exempt status such as the commonly known charitable organization under . . . Read More
The Department of Veterans Affairs (VA) Veterans First Contracting Program continues to attract more and more veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs). Indeed, the ability to gain access to VA contracts set aside for VOSBs and SDVOSBs remains an incredibly popular tool among small businesses in the veteran contracting community. Much to the dismay of many potentially eligible firms, the process of applying to the VA, Center for Verification and Evaluation (CVE) to be verified . . . Read More
By Ambi Biggs The number of qui tam actions–lawsuits brought by whistleblowers on behalf of the United States–has increased in recent years, more than doubling from 2003 to 2013. The primary federal statute under which qui tam actions can be brought is the False Claims Act (“FCA”), 31 U.S.C. § 3729, et seq. Under the FCA, anyone who knowingly presents a false or fraudulent claim to the government for payment or approval or knowingly makes or uses a false record . . . Read More
Secretary of Labor Thomas Perez announced yesterday that the U.S. Department of Labor has submitted a proposed rule on the white-collar FLSA overtime exemptions to the Office of Management and Budget (OMB). The proposed rule is in response to President Obama’s March 13, 2014 directive to the Secretary to revise the current regulations because of actual or perceived abuses of the exemptions and because the salary basis test has failed to rise at the rate of inflation. The salary threshold . . . Read More
Comments on Proposed Rule Regarding the Small Business Mentor Protégé Program; Small Business Size Regulations; Government Contracting Programs; 8(a) Business Development/Small Disadvantaged Business Status Determinations; HUBZone Program; Women-Owned Small Business Federal Contract Program; Rules of Procedure Governing Cases Before the Office of Hearings and Appeals , RIN: 3245-AG24 We are releasing our comments regarding the U.S. Small Business Administration’s (“SBA”) proposed rule of February 5, 2015, to establish a mentor-protégé program for all small businesses. See 80 Fed. Reg. 6618 . . . Read More
