Atlanta Estate Planning Lawyer Blog

A business owner pays approximately 16% of his or her salary in payroll tax. The payroll tax is in addition to federal and state income tax. For example, if you pay yourself a salary of $75,000, the payroll tax is approx. $12,000, plus federal and state tax.

Here’s a tip on how to save on payroll taxes. Suppose your business earns a profit of about $75,000 per year. So you pay yourself a salary of $75,000. Your payroll tax is approx. $12,000. If you were operating your business as an “S” corporation, which many small business owners do, then you need to know that distributions of profit from an “S” corporation are not subject to payroll tax.

Instead of paying yourself a salary of $75,000 (all of which is subject to payroll tax), pay yourself a smaller but reasonable salary of say $25,000. Thus, the payroll tax is approximately $4,000. The other $50,000 is distributed to you as an “S” corporation dividend. There is no payroll tax on the $50,000 distribution. That’s a tax savings of approx. $8,000!!!

The same technique can be used for a limited liability company ("LLC"), but it’s a little more complicated. You pay yourself a salary and pay payroll tax on that amount. But there is no payroll tax on an LLC distribution of profit as long as you are not the LLC’c member. Most people either interpose another LLC (owned by you) as the member of the operating LLC, or for example a spouse who does not work in the business is the member of the operating LLC.

Be smart. Sometimes less really is more. But also be reasonable when using this technique. The Adams Law Offices offers experienced business and tax experts to assist you with every aspect of owning and running a successful business.

As a Georgia probate litigation lawyer who has represented clients in countless court and legal proceedings concerning Georgia estate disputes in probate court, I am seeing more and more breaches by executors, administrators, and agents for powers of attorney, of their fiduciary duties.

"Fiduciary Duty" Defined: A fiduciary duty is a legal relationship of confidence or trust between two or more parties. In a fiduciary relationship, confidence and trust is put into another, whose good faith, advice and protection are sought after and required by law.

The term fiduciary frequently is becomes issues in the management of Georgia probate estates by untrustworthy or self-dealing executors or administrators. In fact, it is more and more often, I am coming across breach of fiduciary duty cases and they have become quite common issues concerning executors and administrators in Georgia probate estate administration. My thoughts are that since we have fallen on tough times with respect to our economy, these Georgia executors and administrators are taking liberties with their fiduciary duties imposed by Georgia probate law.

If you feel parties will act in a manner inconsistent with fairness or engaging in self-dealing, please know The Adams Law Offices represents administrators, executors, heirs, beneficiaries, estates, and personal representatives in all stages of Georgia estate administration and Georgia probate matters. Our Firm has extensive experience in Georgia probate guidance; Georgia probate disputes; Georgia probate litigation matters; and, estate mediation. Please feel free to contact us (404) 467-8611 or 1-877-412-3267 to see how we can assist you. Please also feel free to send us a confidential e-mail Web Site contact us form. The Adams Law Offices is conveniently located in the Buckhead section of Atlanta, GA near the intersection of Piedmont and Roswell Roads.

Foreign nationals may not fully understand the effect a green card has on his or her status for United States (“Federal”) tax purposes. The Federal Government taxes United States citizens and resident aliens on their worldwide income, regardless of their presence (or lack of presence) in the US. Nonresident aliens are only subject to Federal tax on their income connected to the United States.

For example, suppose you are a citizen of a foreign country and work full-time in a foreign country. While you may make no income in the United States and you only visit the United States a few weeks each year, the questions arises as to whether you owe Federal tax.

The answer may surprise you. It depends on whether you are deemed a resident alien or a nonresident alien. The test generally depends upon the number of days you are in the US. Most foreign nationals are aware of the “183 day” test, and keep careful track of their days of entry and leaving the US.

However, there is a second test. If you are a current green card holder, then you are deemed to be a resident alien. The number of days you are in the US does not determine your status for US tax purposes. Even if you have no presence in the US, you are still subject to Federal tax if you are a current green card holder.

This broad rule is justified by the US Congress because green card holders “have rights similar to those afforded US citizens (including the right to enter the US at will); equity demands that they contribute to the cost of running the government as much as citizens”.

Two exceptions likely mitigate Federal taxation. One is that a resident alien can claim a tax credit against his or her Federal tax for taxes paid in a foreign country. The other exception is that a tax treaty between the US and a resident alien’s home country may exempt US taxation of a resident’s income earned outside the US.

Federal taxation of foreign nationals is a complex subject. You should seek the legal representation of a tax lawyer and a tax expert. The Adams Law Offices offers representation from tax attorneys and tax experts who not only have worked in the private sector but have also worked with The United States Tax Court. We are ready to serve and assist you with your tax related matters and our Main Office is conveniently located in the heart of Buckhead. Please call us at 1-877-412-3267 or (404) 467-8611, to discuss your options, or send us a message through our confidential Web Site form.