Questions Answered by D. Mathew Blackburn

Q: What forms do I need to send the IRS for my one and only part-time employee?

1 Answer | Asked in Tax Law for Colorado on
Answered on Jan 27, 2018

You will need to file and remit tax for the 944 for withholding and SS, 940 for futa, uitr-1 for CO unemployment tax, and the CO withholding forms. Along with the w-2. You also have to file a notice of hiring with the CO department of labor.
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Q: In Colorado, can you legally write up your own contract for your business, or must a lawyer provide said contract?

1 Answer | Asked in Business Law for Colorado on
Answered on Jan 22, 2018

You can absolutely draft your own contracts for your business without an attorney. It's not a good idea but you can do it. What is illegal, unauthorized practice of law, is to advise others on the legalities of contracts.

Regarding enforceability of the contracts you write is an entirely different issue. You're going to do the best you can and you're taking your chances that you're just as good as or better than someone who studied law for three years, passed the bar exam, and then...
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Q: Is it illegal to unknowingly send an advertisement for homeowners insurance to a minor in Colorado?

1 Answer | Asked in Business Law and Insurance Defense for Colorado on
Answered on Jan 15, 2018

No, that woman's an idiot.

Even if it were illegal it would be prosecuted by the county attorney for a criminal act, or more likely the Dept. of Regulatory Agencies (DORA) for a regulatory violation. She has no private right of action to sue you for mistaken advertisement.

The question should be what are you putting your kid's name on that it's ending up on this list.
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Q: Registered business name in Oct. 2017 with no EIN yet. Are we required to file even though we are not in business yet?

1 Answer | Asked in Business Formation for Colorado on
Answered on Jan 4, 2018

Partnerships must file a Form 1065 each year regardless of income or loss. If you don't have an EIN yet you can simply write "Applied For" on the EIN block. You should get an EIN as soon as possible.
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Q: With the new tax bill, is it true I can only write off $10,000 of my property taxes now? What if I paid more than that?

2 Answers | Asked in Tax Law for Colorado on
Answered on Jan 4, 2018

Yes the new tax laws limit the itemized deduction of sales tax or income tax, and property tax to $10,000. If you paid more than that amount the remainder of the amounts paid will simply not be allowed as a deduction.

Also, be aware that if you pre-paid 2018 property taxes so that you could deduct them in 2017, since there's no limit, your prepayment may not be allowed if the tax was not assessed. The IRS has already stated that they will be challenging prepayments where the tax was an...
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Q: I'm running an advertisement for my company and I'm not certain it's legal, I need some feedback on it-

1 Answer | Asked in Business Law for Colorado on
Answered on Dec 27, 2017

You should consult an attorney who can advise you on your situation.
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Q: Retirement annuity payout

1 Answer | Asked in Tax Law for Colorado on
Answered on Dec 13, 2017

It depends. You'll need to hire an expert to determine tax realization and recognition depending on how the annuity was originally purchased, whether with pre / post tax dollars.
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Q: I work for a small biz as an employee and was sued personally (small claims) for a mistake the biz made. What do I do?

1 Answer | Asked in Business Law, Civil Litigation and Employment Law for Colorado on
Answered on Dec 12, 2017

Hire an attorney, A company policy is not the law and they can sue you and the company. You'll have to respond to the complaint and defend yourself at trial if necessary.
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Q: Can I use the standard meal allowance method to calculate M&IE deductions when traveling internationally for business?

1 Answer | Asked in Business Law for Colorado on
Answered on Nov 16, 2017

Yes, just make sure you use the international tables not the domestic.

INternational: https://aoprals.state.gov/content.asp?content_id=184&menu_id=78

Domestic: https://www.gsa.gov/travel/plan-book/per-diem-rates

Publication 463: https://www.irs.gov/publications/p463
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Q: Hi, I foolishly paid a fee for a loan consultant service when starting up a business; help me not pay?

1 Answer | Asked in Business Law and Contracts for Colorado on
Answered on Nov 15, 2017

It's going to depend on the contract and whether they followed state funding laws whether you can get out of the obligation or get any money back. Let me know if you'd like to setup a consult and we can discuss costs and options.
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Q: I inherited a farm for which I have income to report my share of the proceeds from the sale of livestock and coop dist

2 Answers | Asked in Tax Law for Colorado on
Answered on Nov 10, 2017

If you're not actively participating in the business then no you are not subject to SE tax. Also farms have alternative SE calculations that may come into play. I would suggest hiring a professional to help with this. The Schedule F looks simple enough but there are numerous traps for the unwary.
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Q: We moved from NM to CO w/ two LLCs. We have to dissolve the LLCs in NM, correct? Just Articles of Dissolution needed?

1 Answer | Asked in Business Law for Colorado on
Answered on Oct 26, 2017

Not quite, to avoid tax issues it's often better to create the new LLC in Colorado and contribute your interests in the NM LLC to the CO LLC then dissolve. Remember that if you dissolve a company you are taxed on the FMV of the assets reduced by your basis. It's going to depend on your basis, FMV, and other factors which approach is best.
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Q: Do business owners sometimes need to file their individual taxes and business taxes together?

1 Answer | Asked in Tax Law for Colorado on
Answered on Oct 24, 2017

If you own your business as a sole-proprietorship, a Single-Member LLC, or a Multi-Member LLC where the other member is your spouse then the business return will go on your F1040 Schedule C (One for each spouse for the marital LLC). Otherwise the entity type will determine the type of return to be filed along with the due date which is usually March 15 or April 15 of the year following the tax year. This assumes a calendar based tax year.
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Q: Can my for profit business make a tax deductable donation to my non profit?

1 Answer | Asked in Tax Law for Colorado on
Answered on Oct 6, 2017

The only business that can deduct a charitable donation is a corporation. LLCs, S-corps, sole-props, etc... all pass that deduction directly to the owners and is not deducted at the entity level.

The next question is does this qualify as self-dealing. Given the details you've presented there's no way to know.

This is a question for your attorney. if you're running a two businesses you need an attorney.
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Q: We run an ecommerce site to sell products

1 Answer | Asked in Business Law for Colorado on
Answered on Sep 27, 2017
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Q: Is the General Contractor in a breach of contract

1 Answer | Asked in Business Formation, Contracts and Construction Law for Colorado on
Answered on Sep 22, 2017

Maybe. In a technical capacity yes it's a breach. The next question becomes is it material. is there a time clause? If the contract doesn't say time is of the essence then the times are more like guidelines and breaking them becomes an immaterial breach. A no harm no foul sort of situation. Which brings us to the next step: damages. Even where you have a breach there's little you can do without damages. Depending on the contract you may be able to rescind or cancel the contract, there may be...
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Q: Do I still pay property taxes if I'm currently appealing the assessment?

1 Answer | Asked in Tax Law for Colorado on
Answered on Sep 9, 2017

Yes. You pay and appeal to request a refund. Failure to pay may result in a lien and foreclosure.
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Q: Does a retention agreement, where my company is moving locations (and I am not) and I am being retained for two months

1 Answer | Asked in Business Law and Employment Law for Colorado on
Answered on Sep 1, 2017

Not automatically. Any deviation from prior contractual agreements should be included in the retention agreement.
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Q: I have two questions concerning IRS treatment of Colorado maintenance.

2 Answers | Asked in Divorce and Tax Law for Colorado on
Answered on Aug 16, 2017
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Q: Is it legal to have people sign a non-compete when testing out a dating method? Please read more for details.

1 Answer | Asked in Contracts, Business Law and Consumer Law for Colorado on
Answered on Aug 6, 2017

The non-competes would be very difficult to enforce under Colorado law. The "test run males" are not working for you they are the customers.Non-competes can't be enforced against customers, you can't stop someone from using another firms services. You could ask them to sing non-disclosure agreements but again they are difficult to enforce. I'm making an assumption you have a legitimate business method and we're not talking about prostitution. If it is a truly new and unique method you would...
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