Did you know?

1. INCORPORATORS REJOICE!

   Since California is doing so well financially, incorporators are no longer required to pre-pay franchise taxes (up to $800).

2. HOME SELLER'S TAX RELIEF!

   Sellers of their main homes can now exclude from income (i.e. capital gains) up to $250,000 for individual filers and $500,000 for joint filers on their IRS Returns.

3. CREDITOR'S BEWARE!

   A Commercial Debtor is not required to inform a Secured Creditor of a name change that would render an existing Financing Statement "seriously misleading." If that weren't bad enough, if the Secured Creditor fails to file a new Financing Statement with the correct debtor name, the secured interest could become "unperfected" and therefore voidable in bankruptcy!

4. EDD REPORTING INCREASE FOR A GOOD CAUSE!

   Effective January 1, 2001, businesses will need to report to the EDD all independent contractors for which they must file a Federal 1099. This law is in addition to the reporting of new hires. Both reporting requirements are intended to locate parents with delinquent child support payments.

5. DISCLOSE NOW OR LOSE IT ALL LATER!

   When divorcing, a party is well advised to disclose all assets as required by statute. Recently, a trial court awarded the million dollar lottery winnings of a woman to her x-husband because she didn't disclose those winnings in her divorce papers! A California x-spouse who believes s/he has been defrauded in a completed divorce has the right to sue in civil court, and if successful, can be awarded the entire amount or item not disclosed!