Foreign National Business Formation and the EB-5 Visa Process in Colorado

by | May 16, 2017 | Business News, Misc. Legal Tidbits, Random Thoughts

Foreign National Business Formation and the EB-5 Visa Process in Colorado

Congress, in its quest to keep our economy healthy, looks for ways to invite business owners and entrepreneurs from other countries here, to our shores, to build, manufacture, and employ our citizens. The good news, if you are a foreign national looking for a chance to become a U.S. business owner, is that you don’t have to be a multi-national conglomerate to own a business here in the United States.

USCIS administers the EB-5 program, created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors.

The EB-5 program doesn’t restrict visas to large corporations like Toyota and Siemens. Instead, it requires foreign investors invest in a new commercial enterprise or rescue a troubled business where they will continue to employ the existing employees for at least two years.

U.S. Citizenship and Immigration services (USCIS) describes new commercial enterprise as for-profit activity formed for the ongoing conduct of lawful business including by not limited to:

  • A sole proprietorship
  • Partnership (whether limited or general)
  • Holding company
  • Joint venture
  • Corporation
  • Business trust, or
  • Other entity, which may be publicly or privately owned

There are a few catches, but if you can overcome them, you can set up shop in the United States as a foreign national. What seem to be the more challenging requirements? You have to be able to hire or employ 10 qualifying employees, and you need to be able to invest a substantial amount of capital.

A Foreign National Owned Business Must Provide Employment for 10 Qualifying Employees

Keeping in mind that the qualifying employees can be existing employees, as an Eb-5 foreign national owned business you must provide employments for 10 qualifying employees. A qualifying employee is described by USCIS as follows:

A qualifying employee is a U.S. citizen, lawful permanent resident or other immigrant authorized to work in the United States including, but not limited to, a conditional resident, a temporary resident, an asylee, a refugee, or a person residing in the United States under suspension of deportation.

However, “this definition does not include the immigrant investor; his or her spouse, sons, or daughters; or any foreign national in any non-immigrant status (such as an H-1B non-immigrant) or who is not authorized to work in the United States.” Which means your family can of course come with you, but if you hire a friend or family member who is also a foreign national, their job may not count toward the requirement to employ ten qualified people.

EB-5 Capital Investment Requirement

The EB-5capital investment requirement is pretty steep, but you can cut the amount required in half if you are willing to invest in a High Unemployment or Rural Area. The minimum general qualifying investment amount is $1 million, but the investment requirement in a Targeted Employment Area (High Unemployment or Rural Area) is on only $500,000.

There are a lot of rules and requirements that extend beyond this surface explanation, but if you are a foreign national who has a business idea or an entrepreneurial skill set that you believe would prosper well in the United States, it is worth your time to talk to an attorney who is familiar with the law and has experience preparing EB-5 visa applications.

Foreign National Business Formation in Colorado

Our state, like many U.S. States, has a Regional Investment center designed to attract Foreign National business formation in Colorado. The Colorado Regional Center describes EB-5 investment as “an alignment of interests” which allow immigrant investors the opportunity to “live, work, attend school, or retire anywhere in the U.S.” Their website lists a host of benefits, including a path to citizenship if that is your ultimate goal.

  • The investor does not have to be sponsored
  • The process for approval is relatively fast compared to other visa programs
  • The investor has more freedom of travel
  • The investor has increased US educational opportunities (including residency benefits for dependent students) and
  • The investor has the opportunity to become a U.S. citizen after five years

The EB-5 visa program is thriving in Colorado, and many areas of the state are welcoming and diverse, making it a popular alternative to more expensive East and West coast investment possibilities. If you are a foreign national with an interest in investing in or operating a business here in the United States, or have questions about foreign national business formation and the EB-5 visa process in Colorado, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Zoning Permits are Required for Denver Home Based Businesses

Zoning Permits are Required for Denver Home Based Businesses

by | May 10, 2017 | Business News, Misc. Legal Tidbits

Zoning Permits are Required for Denver Home Based Businesses

The city of Denver is working to make starting your small business as simple and affordable as possible. In recent years, laws which allow for fresh produce and cottage food sales from home have been passed in order to help small, home-based food production businesses get started. Through the Small Business Development Center (SBDC) in Denver and throughout Colorado, funds are often provided to help budding entrepreneurs learn more about the topics they need to master to succeed. All-in-all, Colorado is friendly to small business start ups and home business hopefuls, but zoning permits are required for Denver home based businesses.

Will Your Denver Home Based Business Need a Zoning Permit?

Most people think of zoning permits as being connected to retail sales, or start-ups that are associated with a licensed profession. Not so; even if your Denver home office is just a place where you connect to the internet to do freelance work, you will need a home occupation permit. You will also want to know if it is legal for you to conduct the type of business you plan to run, from your home. Be warned; the process for figuring out if you can run a specific type of business from your address is not simple. Why? Because there are multiple elements you need to examine:

The first element of your zone district represents the neighborhood context, the second part represents the dominant building form and character, and the third part represents the minimum zone lot size or maximum building height. Occasionally there is an additional number or letter as the fourth part, which represents a special purpose.

It may help to see an example. Let’s say you’ve plugged in your address, and found your zone district using Denver’s online zoning locator map.

The image below shows an example of a zone district (click to enlarge).
zoning map sample for Denver

Zone districts are coded. Below is an example of a Zone District code – let’s break it down and see how the code translates into whether our not you need a Zoning Permit to operate a home businesses at this address:

S-MX-F3

The initial element, in our example, “S” will describe the context of your neighborhood. Is it suburban? Downtown? The zoning rules will of course be different for a suburban neighborhood than an urban edge neighborhood. In our example, “S” stands for a Suburban neighborhood context. You can see the zoning code associated with each type of neighborhood on the Community Planning and Development page (on the right hand side) of the Denver city government website.

Context is actually a really interesting element that attempts to label what you and your neighbors expect to find in your neighborhood so you don’t wake up one morning with an auto mechanic’s shop next door to your Victorian (although, if you’re trying to preserve a Victorian that’s in a mixed use neighborhood, you may anyway!). The city of Denver provides a video to explain what goes into determining context.

We’ve got the first element covered! Our sample code is S-MX-F3. So what does the MX stand for? That describes the dominant building form and character. Your address could be designated as a Mixed Use area (MX), or a Residential Office (RO) area and so forth.

Some buildings are designated with a special provision (A= Special provisions). It is unlikely that your home address will return a special provision element, but if it does, you will need to make a phone call and ask for details. The more typical codes for Dominant Building Form and Character are:

SU = Single Unit
TU = Two Unit
TH = Town House
RH = Row House
MU = Multi Unit
RO = Residential Office
RX = Residential Mixed Use
CC = Commercial Corridor
MX = Mixed Use
MS = Main Street

We are in the home stretch! The final element will usually describe the minimum lot size and maximum building height designated for your lot. This element is important if you are planning to build your new home office above your garage, but not so much if you are planning to start your business in the spare bedroom. Zoning rules are why your ranch style house in the suburbs doesn’t have a skyscraper on either side of it: lot sizes in the suburbs as well as the height of the buildings allowed are controlled by zoning laws. In our example, the final element – F3 – tells us the minimum square footage lot size, and building height maximum per the chart below:

Square footage:
A = 3,000
B = 4,500
C = 5,500
D =6,000
E = 7,000
F = 8,500
G = 9,000
H = 10,000
I = 12,000

Height:
2 = 2 stories
2.5 = 2.5 stories
3 = 3 stories
5 = 5 stories
8 = 8 stories
12 = 12 stories
16 = 16 stories
20 = 20 stories

So, the lot size for this address is 8500 square feet, and the maximum number of stories allowed is 3. Now you know! But how does this impact your need for a zoning permit? Remember when we said it was easy, but not simple. Here is where it gets a little less simple: you need to find out what types of businesses are allowed at your address in what is called the Context Article. There is a context article for each neighborhood type, so if you are in a suburban neighborhood, you will open Article 3: Suburban Neighborhood Context and find out if the type of business you plan to run in your neighborhood is allowed. This set of rules is what prevents a night club from opening up next door to an elementary school. Once you know the type of home business you plan to conduct, you open up the Article for your Neighborhood Context, and find out if what you want to do is allowed in your neighborhood. Here is what the article will tell you, once you find your home-based business idea on the list of business types:

*= Need Not be Enclosed
P = Permitted Use without Limitations
L = Permitted Use with Limitations
NP = Not Permitted Use
ZP = Zoning Permit Review
ZPIN = Subject to Zoning Permit Review with Informational Notice
ZPSE = Subject to Zoning Permit with Special Exception Review
When no ZP, ZPIN, ZPSE listed = No Zoning Permit required

What you hope to see is “no ZP, ZPIN, ZPSE listed” because then you don’t need a permit! What you don’t want to see is NP – because then the type of business you want to run from home in your neighborhood is not allowed. You can find the Article for your specific neighborhood context (this was the S, or first element of our zoning code example) in the Zoning section of the city website, under the tab labeled “View Denver Zoning Code by Article.”

Remember, if you can legally operate a specific type of business from your home, you will still need a zoning permit for home occupations:

A zoning permit is required for all home occupations.

You can complete your zoning permit on the city website and (thank goodness!) it’s pretty easy to do. If you need help determining which zoning permits are required for your Denver home based businesses, or have any questions about the legalities of running a business from home, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

3 Timely Colorado Business Formation Tips

by | Apr 28, 2017 | Business News, Misc. Legal Tidbits

3 Timely Colorado Business Formation Tips

There is a lot to think about when forming a new business, and some concerns need to be addressed right away or you may face problems down the road. Here are three time sensitive Colorado business formation tips and where to get help with them:

  1. What form will your business take?
  2. What taxes and licenses will your business be liable for?
  3. Who will review the contracts your business enters into?

What Form Will Your Business Take?

By form, I mean the legal structure your business will take. Will you form a corporation? If so, which type of corporate status is right for your business? Should you form a Limited Liability Company (LLC) instead? The form your Colorado business will take has a major impact on your tax liabilities, how much risk you expose yourself to personally, and even who is (and is not) a business partner. This question is perhaps the most timely of all the questions you will ask yourself when forming a new business because of the consequences should you run into trouble without a properly, legally formed business.

Perhaps the most important time for you to consult a small business attorney will be when you select the form your Colorado business will take. An experienced business attorney has the background needed to explain the pros and cons of the various forms your business can take and how the form you choose will impact you, including how your choices will affect dissolving a partnership or selling the business down the road. The Colorado SBDC has excellent resources for explaining the legal structures you can choose from, but in the end, you will want the advice of an attorney when drawing up the actual documents that form your new business in Colorado.

What Taxes and Licenses Will Your Business be Liable For?

This list seems to be getting longer every year, but the fact is, taxes and licenses are very time sensitive. You don’t want to find yourself in a situation where you have overlooked a tax your business owes, missed a payment deadline, or failed to obtain a required license or permit. Each of these mistakes can mean penalties or fines, some of them substantial. The Small Business Administration (SBA) has a fantastic and thorough list of Colorado resources for researching taxes and licenses, and the Colorado Secretary of State has a new business checklist that covers insurance and regulatory issues. There is a lot to know, and it is easy to overlook a requirement even with all of the resources offered. Making sure you have taken care of all required taxes and licenses is another good reason to consult a Colorado small business lawyer.

Who Will Review The Contracts Your Business Enters Into?

Contracts provide you with legal protections – if they are well constructed. Some of the contracts your small business may enter into include:

  • employment contracts
  • vendor contracts
  • purchase agreements
  • commercial and equipment leases
  • partnership agreements

Of all the frustrating legal entanglements I see small business owners struggle with, a poorly worded contract is typically the most expensive and demoralizing. Poorly worded contracts can make it difficult for you to end a relationship with a supplier, partner, or landlord, no matter the circumstances. An equipment lease that hasn’t been reviewed by your attorney can result in you owning equipment that doesn’t function properly but for which you are still required to pay every month. It is much less expensive to pay a small business attorney to look over a contract before you sign it than to engage one to help you get out of a bad contract.

There are other issues you will want to address as you think about your new Colorado small business, but these 3 timely Colorado business formation tips will help you right at the get go. If you need small business start-up advice, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Your Small Business, For Sale

by | Mar 21, 2017 | Business News, Misc. Legal Tidbits

Your Small Business, For Sale

If you’re Joyti Bansal, you’re pretty happy these days. Your company, AppDynamics was just purchased by Cisco for 3.7 Billion dollars! As a Colorado small business owner, Cisco might not by eyeing your company for acquisition, but there could still be time when you might want to find a buyer for your business. This post will discuss some legal issues to consider, thoughts on establishing a value, and tips on finding a buyer in preparation for listing your small business for sale.

Legal Issues to Consider When Selling a Small Business

There are a plethora of legal issues to consider when selling a small business, but one of the first you will face is the form of your business. The sale of a C-corp transpires in a much different manner than an LLC. If your company has issued stock, there may be provisions that restrict how that stock can be sold. If you have partners, your contract with them may include clauses about when, how, and to whom you are permitted to sell your share. If you are considering the sale of your small business, one of the first things you should do is obtain a legal review of the business. Your Colorado small business attorney can help you determine how existing contracts or encumbrances will affect the sale, and make suggestions about the best way to proceed.

Other legal issues include the transfer of licenses associated with the business, any leases or equipment contracts you may have, the wording of the sales contract, non-competition concerns, non-disclosure agreements, tax implications, and current contracts with employees and customers. While there are several professionals you will want to enlist as you plan for the sale of your business, your business attorney is probably the first person you should talk to.

Establishing a Value for Small Business

Once your are clear about the legal details of selling your business, you will want to obtain input on the potential value. It is common to value a business as a multiple of annual cash flow. On average, the multiple is two times the annual cash flow, but this figure changes depending on the volume of cash. For example, if the annual cash flow is below $100k, you may get offers slightly below $200k. If it is above $500k, you may see offers closer to $1.5 million. Of course, cash flow valuations are dependent on market considerations – will the business continue to perform well moving forward, or are their indicators that sales may decline?

If cash flow isn’t a good measure of the value of your small business, there are several ways for establishing a value for your small business. The Small Business Administration (SBA) provides some definitions on the most common methods:

  • Capitalized Earning Approach: This method refers to the return on the investment that is expected by an investor.
  • Excess Earning Method: Similar to the capitalized earning method, except that it separates return on assets from other earnings.
  • Cash Flow Method: This method is typically used when attempting to determine how much of a loan the cash flow of the business will support. The adjusted cash flow is used as a benchmark to measure the firm’s ability to service debt.
  • Tangible Assets (Balance Sheet) Method: This method values the business by the tangible assets.
  • Value of Specific Intangible Assets Method: This method compares buying a wanted intangible asset versus creating it.

Your accountant can help you establish a valuation based on these models, and give you feedback on which model makes the most sense for your type of business. In addition to the straight forward number crunching your accountant may be able to discuss other business valuation standards that will help you arrive at a fair price.

Finding a Buyer for Your Small Business

There is an abundance of companies willing to take a percentage of the sale of your business in exchange for help finding a buyer. Not all of them are entirely scrupulous. If you are going to pay for help finding a buyer, you should consider asking your attorney for advice about a reputable firm. If you need help with resources for valuing you small business, or finding a buyer, or if you would like help with a legal review of your business in preparation for listing your small business for sale, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Eight Important Questions For Your Small Business Attorney

by | Mar 8, 2017 | Business News, Misc. Legal Tidbits

Eight Important Questions For Your Small Business Attorney

Asking a Colorado small business attorney about these important aspects of your business now can save you a lot of frustration and expense down the road.

Whether you are a Colorado small business just getting started, or an established company with locations throughout the United States (and growing!), it is important that you work with an attorney throughout the life of your business. This post will cover the following list of typical reasons entrepreneurs with new or established businesses should seek out a business attorney:

  • business formation advice and documentation
  • business development and planning consultation
  • creation and/or review of business contracts
  • employment and independent contractor agreements
  • non-disclosure agreements
  • review of leases
  • software licensing contracts
  • website documentation

Business Formation Advice and Documentation

The form your business takes (ex: corporation, s-corporation, or a limited liability company) affects how you pay taxes, and how your personal assets are protected by the law. Business formation also has a role in your record keeping, and document filings. If you are in Colorado, there are some things you can do on your own, but before you get started, speaking to a small business attorney to get business formation advice and documentation instruction for your specific situation can be one of the most important decisions you make. Even if you want to handle some of the paperwork and filing on your own, you should still have an attorney review your situation and make a business form recommendation. Once you have good advice on which form of business to choose, your attorney can help you file the paper work, direct you on how to keep necessary records, or do it for you.

Business Development and Planning Consultation

Even if you are a brand new business, having an experienced small business attorney provide business development and planning consultation is a smart move. No entrepreneur has every skill-set needed to grow a business – you might have fantastic sales skills, but terrible record keeping practices. Let a good business attorney refer you to trusted resources in the areas where you need help.

Consulting with your attorney about gaps in your business plan is a good idea, too. While no attorney enjoys seeing a business fail, a big part of any small business law practice unfortunately involves helping people clean up after a business fails. This puts your small business attorney in an ideal position to advise you about what not to do.

Creating and Reviewing Business Contracts

Just do it! Whether you are a small business writing your first contract, or an established business sending out a contract you have used for years, it is critical that an attorney help with creating and reviewing business contracts. Even if you are familiar with contract law in Colorado, laws change over time, and what was a good contract five years ago may no longer be.

Employment and Independent Contractor Agreements

Employment law is one of the most complicated and confusing aspects of business. It is easy for a small business owner to get tangled up in a bad employment contract, or to set requirements for workers that disqualify them as independent contractors. Without the advice of an attorney, it is fairly easy to break the law unintentionally when it comes to your employment and independent contractor agreements.

Non-disclosure Agreements

If you are not sure if you need non-disclosure agreements in your line of work, ask your attorney. The answer may surprise you. There are many instances an NDA is a good idea, even if you are not discussing an invention or new idea.

Review of Leases

This is another “just do it” recommendation on our list of important questions to ask your Colorado small business attorney. There is no such thing as a “standard” lease agreement. Your attorney can provide a review of leases before you sign them and tell you exactly what you are committing to and how the lease can be terminated (or not!). You do not want to be stuck with a $20k widget that you can’t use and you can’t return. Your attorney can protect you, so let her!

Software Licensing Contracts

Even if you don’t write code or work in technology, it is a good idea to find out whether any of your ideas, practices, applications, or web sites should be protected by software licensing contracts . To do so, you will need the services of a good intellectual property attorney such as myself.

Website Documentation

You probably have a website, but have you properly posted your privacy and copyright policies, terms of service, etc.? If not, you could be placing your business in a precarious position. If you haven’t covered yourself with the correct legal statements, your small business attorney may have a broiler plate recommendation for the website documentation legalese that belongs on your public website.

Whether you have eight important questions for your small business attorney, or just one, the sooner you ask, the better. If you need legal advice about business formation, non-disclosure agreements, website documentation or any other legal advice for your small business, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Business Tax Planning and Important 2017 Due Dates

by | Mar 1, 2017 | Misc. Legal Tidbits, Random Thoughts

Business Tax Planning and Important 2017 Due Dates

Do you really want to make tax time a lot less stressful? Add your tax filing deadlines to your calendar right now, with lots of digital reminders to get it done! If it has been a challenge in the past, consider making a list of all the steps you need to take to be prepared, and breaking those steps down on your calendar with lots of digital reminders. Here is a typical list you might make, giving yourself time each day or week to work on the individual items:

  • appointment with tax accountant (these fill up fast, so today is a good day to arrange this!)
  • review last years taxes to see what forms will likely be due
  • add due dates for various filings to my calendar
  • make sure books are current
  • meet with tax accountant
  • confirm filings are ready to mail (a week before the deadline is nice!)

As a Colorado small business attorney, I know how stressful preparing for tax time is, so I am sharing some dates I hope will be helpful to you in planning and preparing for your tax payment deadlines. While it is easy enough to Google due dates, you may want to read over this list to make sure you have not forgotten anything. As always, be sure to check with the IRS or your accountant to make sure you are up to date on all the requirements.

Partnership Tax Returns

Partnership tax returns are due March 15, not April 15 as used to be the case. This change occurred in 2016. If your partnership isn’t on a calendar year, it is due on the 15th day of the third month following the close of your tax year.

Partnerships: Form 1065. This form is due on the 15th day of the 3rd month after the end of the partnership’s tax year. Provide each partner with a copy of their Schedule K-1 (Form 1065) or substitute Schedule K-1 (Form 1065) by the 15th day of the 3rd month after the end of the partnership’s tax year. Form 7004 is used to request an automatic 6-month extension of time to file Form 1065. ~IRS.gov

Corporations and S Corporations Tax Returns

Corps and S corp tax returns are due April 15th, not March 15 (if your tax year ends in December). The language is a little confusing, so ask your small business attorney or tax accountant for help if you are not sure what the IRS is trying to say. Here is the official wording:

Corporations and S Corporations Tax Returns: Form 1120 (or Form 7004). This form is due on the 15th day of the 4th month after the end of the corporation’s tax year. However, a corporation with a fiscal tax year ending June 30 must file by the 15th day of the 3rd month after the end of its tax year. A corporation with a short tax year ending anytime in June will be treated as if the short year ended on June 30, and must file by the 15th day of the 3rd month after the end of its tax year. ~IRS.gov

If you need more time to complete your 2016 business tax return, you can request an extension. Keep in mind, even if you file the extension, you are required to calculate how much you owe and send in the estimate by the due date – which means you will still need your accountant’s help prior to the deadline. Make that appointment now, to insure he or she can fit you in. If you do not include the estimated taxes, the IRS can invalidate your extension and you will be stuck with penalties.

Review these additional dates to make sure you are not forgetting something:

Individual Tax Returns – Tuesday, April 18

Because April 15th falls on the weekend again this year, individual tax returns (or request for extension) are due on Tuesday, April 18th. Normally, they would be due on Monday, April 17th, but a holiday impacts the due date this year:

The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17. However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation. ~IRS.gov

Estimated Taxes

Before you worry about paying estimated taxes, make sure you need to.

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed. ~IRS.gov

The IRS provides good guidelines for who does and does not need to pay estimated taxes. If you are not certain, check with your tax accountant sooner than later. If you do need to pay estimated taxes, be familiar with the following quarterly estimated tax due dates:

First Quarter Estimated Taxes
First quarter estimated taxes are due on the same day as your individual tax returns

Second Quarter Estimated Taxes – June 15th
No holidays or weekends will alter the June 15th second quarter estimated taxes due date.

Third Quarter Estimated Taxes – September 15th
Third quarter estimated taxes are due.

Fourth Quarter Estimated Taxes – January 15th, 2017
Fourth quarter estimated taxes are due.

Other Tax Due Dates and Deadlines

  • Last day to contribute to IRAs, HSAs, or 401Ks : Tuesday April 18th for 2017
  • Last day for Americans living abroad to file individual taxes: June 15th for 2017
  • FBAR aka FinCEN Form 114: The due date for foreign account FBAR forms, also known as FinCEN Form 114, goes from June 30 to April 15 (you can get a six-month extension, just like tax returns.) FBARs are important if you had foreign accounts that topped $10,000 at any time during the year.

If you need help figuring out your tax year, or need a good referral to a trustworthy and capable tax accountant, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets