A single-member LLC is taxed by default as a “disregarded entity,” meaning all its income, losses, and deductions flow through to the owner’s personal return. But with a “Check-the-Box” election (IRS Form 8832), the LLC can opt instead to be taxed as a corporation. The trade-offs are significant: you may reduce self-employment taxes by splitting income between salary and dividends, but you’ll incur new compliance burdens, risk double taxation, and face stricter state and federal reporting requirements. Deciding whether to make the election—or reverse a prior one—requires careful planning with legal and tax professionals to align with long-term financial goals. Learn more: https://www.cummings.law/tax-consequences-of-a-check-the-box-election-for-a-single-member-llc/

Adjusting journal entries in partnership agreements may look like routine accounting, but they can carry major tax consequences. In this video, I explain how these entries impact capital accounts, allocations of income and loss, and compliance with IRS rules under Subchapter K. You’ll learn why improperly drafted or misapplied entries can trigger phantom income, distort partner basis, and create disputes over economic intent. I also highlight the importance of aligning adjusting entries with Section 704(b) and 704(c) requirements to ensure allocations are respected for tax purposes. Whether you are drafting a new partnership agreement or reviewing existing terms, understanding the tax implications of adjusting journal entries is essential to avoid costly mistakes and preserve the integrity of your partnership’s tax position. Learn more: https://www.cummings.law/tax-implications-of-adjusting-journal-entries-in-partnership-agreements/

A Qualified Domestic Relations Order (QDRO) is a critical step in dividing retirement assets during divorce, but many people are unsure what it costs and how long it takes. On average, attorney-prepared QDROs cost about $700, but when non-attorneys take matters into their own hands, the "clean-up" work can often be much higher, depending on complexity and plan requirements. The timeline will vary, factoring in drafting, court approval, and plan administrator review. Delays often occur when orders are rejected for technical errors or incomplete details. This is why it is so important to work with an experienced QDRO attorney. In this video, we explain the typical costs and timing for a QDRO, common factors that affect both, and how working with an experienced attorney can help streamline the process and avoid costly mistakes. Learn more: https://www.qdro.law

Real estate partnerships can be lucrative, but without a well-drafted partnership agreement, they can quickly turn into legal disasters. In this presentation, we break down the most common pitfalls that arise when agreements are vague, incomplete, or missing entirely. We’ll cover how inadequate agreements lead to disputes over profit allocation, capital contributions, voting rights, and management authority. We also explain how default state rules—often unfavorable and generic—can take over when agreements are silent, creating unexpected requirements like unanimous consent or per-capita voting. Learn more: https://www.cummings.law/legal-pitfalls-of-inadequate-partnership-agreements-in-real-estate-deals/

Successor liability is one of the most overlooked risks in mergers and acquisitions. Even when buyers structure a deal as an asset purchase, courts and regulators may still hold the acquiring company responsible for the seller’s debts, lawsuits, taxes, or compliance violations. Learn more: https://www.cummings.law/legal-strategies-for-mitigating-successor-liability-in-asset-transactions/

Qualified Domestic Relations Orders (QDROs) are essential for dividing retirement assets in divorce, but small errors can lead to major problems. Learn more: https://www.qdro.law

Executive Cash Balance Plans are a powerful retirement strategy that combines the high contribution limits of defined benefit plans with the flexibility of defined contribution plans. In this presentation, we break down how these plans work, why they are increasingly popular among business owners, physicians, and executives. Lean more: https://www.cummings.law

Texas Senate Bill 140 creates new restrictions on how businesses can use text messaging for customer communication. Learn more: https://www.cummings.law/navigating-the-new-texas-texting-and-telephone-solicitation-law-dos-and-donts-for-small-business-owners/

Unwanted spam text messages are more than just annoying—they may entitle you to real compensation under Texas Senate Bill 140. Each violation could be worth up to $1,500, but filing a successful claim requires precision and compliance with both state and federal law. Every case is different, and results may vary. Learn more: https://www.TexasTexts.law

An operating agreement is the most important document for a multi-member LLC. It defines how profits and losses are shared, how disputes are resolved, how capital is managed, and how ownership changes are handled. Learn more: https://www.cummings.law/the-importance-of-operating-agreements-in-multi-owner-businesses/