On July 27, 2024, the below schedule (i.e., the Bits and the Bytes) on the FTC’s Final Rule on Non-Compete Clauses was posted to this Insights blog. On August 20, 2024, the U.S. District Court for the Northern District of Texas, Dallas Division, issued its opinion in the case of Ryan LLC v. Federal Trade Commission. The District […] The post Unlawful: FTC Final Rule on Non-Compete Clauses – Update Alert appeared first on Freeman Law ..read more

If you own a business in Texas, you’ve likely encountered (for better or worse) the Texas franchise tax.  The franchise tax is a tax imposed on any “taxable entity” that does business in Texas or that is chartered or organized in Texas. [1] The Texas franchise tax is imposed “to the limits of the United […] The post Texas Franchise Tax Basics | Nexus appeared first on Freeman Law ..read more

Introduction           In this revenue ruling, the Service addressed the application of the economic substance doctrine to certain basis-shifting transactions which result from the operative rules of Subchapter K. Generally, the Service identified the issue as taxpayers using the rules applicable to partnerships to create disparity between inside and outside bases. […] The post Reviewing Rev. Rul. 2024-14 | Partnership Basis-shifting Transactions, and the Economic Substance Doctrine appeared first on Freeman Law ..read more

In recent years, Mexico has introduced several tax reforms designed to enhance efficiency and reduce the administrative burden for small and medium-sized enterprises and individual entrepreneurs. These reforms have made Mexico an increasingly attractive destination for business and work. Among these changes, the Simplified Trust Regime (“Régimen Simplificado de Confianza or RESICO”) stands out as […] The post The RESICO Regime | Key Benefits for Individuals appeared first on Freeman Law ..read more

Many startup projects begin with small investments from founders and friends or family who believe in the founders’ plan, product, or idea. As startups further develop their business offering and concept, they often require additional funding from outside investors to finance their activities and growth. But without a minimum viable product or track record, the […] The post Startup Funding: Using Convertible Notes and SAFEs to Bridge the Valuation Gap Between Early Investors and Founders appeared first on Freeman Law ..read more

The Texas Supreme Court recently denied a petition for review of decision of the Texas Fourteenth Court of Appeals’ decision in West Exchange, Inc. v. Hegar. This case illustrates the importance of complying with all statutory requirements for waivers of sovereign immunity when suing the Texas Comptroller of Public Accounts (the “Comptroller”). In this case, […] The post Texas Supreme Court Declines to Hear Comptroller Sovereign Immunity Case appeared first on Freeman Law ..read more

The Treasury Department (“Treasury”) and Internal Revenue Service (“IRS”) recently published final regulations requiring brokers to file information returns and issue payee statements containing information regarding dispositions of digital assets for customers in certain sales or exchanges. The regulations were issued in response to amendments made by the Infrastructure Investment and Jobs Act of 2021 […] The post Treasury and IRS Issue Final Digital Asset Reporting Regulations appeared first on Freeman Law ..read more

Among the multitude of “taxable services” listed in the Texas Tax Code are “information services.” [1] Although the Texas Tax Code’s definition of information services is somewhat sparse, the Comptroller has expanded on this definition in Comptroller Rule 3.342: “Furnishing general or specialized news or other current information, including financial information, by printed, mimeographed, electronic, […] The post Sales and Use Tax: Taxable Information Services appeared first on Freeman Law ..read more

Centralized Partnership Audit Regime (CPAR) is a somewhat new regime that followed TEFRA. Congress promulgated CPAR as part of the Bi-partisan Budget Act of 2015.[1] For taxable years beginning in 2018, CPAR is the controlling authority. In broad terms, CPAR disallows partners from participating in the audit of the partnership and requires that the partnership designate a representative to handle a potential audit.[2] Treas. Reg. § 301.6223-1 The regulations provide a few options to taxpayers designating a Partnership Representative (PR). Namely, the regulations prescribe the proper method to ..read more

The Treasury Department and Internal Revenue Service are proposing regulations that would make so-called basket contract transactions as listed transactions under section 6011(a) of the Internal Revenue Code. The proposed regulations generally would define a basket contract transaction as follows: Taxpayer (“T”) enters into a contract with a counterparty (“C”), including a contract denominated as an option contract, notional principal contract, forward contract, or other derivative contract, to receive a return based on the performance of a reference basket (defined as a notional basket of as ..read more