News & Updates

6 LSP Lawyers Listed in The Best Lawyers in America© 2017

Six of LSP’s lawyers have been recognized in The Best Lawyers in America© 2017: Jack Payne: Employee Benefits (ERISA) Law and Trusts and Estates Don Siegal: Real Estate Law Phil Stutts: Real Estate Law Sid Philips: Corporate Law and Tax Law

“The Limitations of Limited Liability,” a new article by Brockwell and Boulter

The Birmingham Bar Association’s latest issue includes an article on “The Limitations of Limited Liability” by LSP attorneys Greg Brockwell and Andrew Boulter.  The article discusses the circumstances in which a member or manager of a limited liability company may

Executive Compensation Plans for S Corporations

Incentive Compensation Stock Options 1. Nonqualified Stock Options. Instruments granted by the corporation to the employee, giving the employee the right to purchase corporate stock at a designated price through some future date. Under IRC §83(e)(3), options are not taxed

S Corporations and Fringe Benefits

In the S corporation context, the Internal Revenue Code substantially limits the availability of many fringe benefits that are available to shareholder-employees of C corporations. The limitations apply to benefits provided to shareholder-employees who are “2-percent shareholders.” These 2- percent

Corporate Level Taxes Imposed on S Corporations

There are several circumstances in which corporate level taxes may be imposed on S corporations. LIFO Recapture A C corporation that elects to become an S corporation and used the LIFO method of inventory accounting for its last year before

Reasons for Electing S Corporation Status — Planning Considerations

In evaluating the opportunities for using S corporations, it is useful to divide the historical reasons for using subchapter S into five broad, sometimes overlapping, categories. The first involves the limited use of S corporation status by shareholders to obtain

Converting from a C to an S Corporation

Advantages of Operating as an S Corporation One level of tax on earnings with increase in shareholder basis for undistributed earnings. Avoidance of double tax upon sale or liquidation of business. Alternative minimum tax not applicable to S corporations. Pass-through

Checklist of Items to Improve Tax Consequences of Business Purchase and Sale

Despite the repeal of the General Utilities doctrine as a part of TRA ’86, taxpayers currently experience an overall better tax situation for most transactions involving the purchase or sale of a business than before that repeal. The General Utilities

Purchase of Assets vs. Purchase of Stock

Whether the taxable acquisition of a corporate business is cast in the form of a purchase of assets or a purchase of stock can have strikingly different tax, as well as non-tax, consequences for the buyer of the business. It

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Ten Rules On How To Fire An Employee—And Not Get Sued

1. Document the employee’s personnel file. In most employment lawsuits, the fundamental claim of a discharged employee is that he or she was treated unfairly. Most often, this involves an allegation by the ex-employee that he or she had no

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