Self-Dealing Is Easier In Some States

Where your corporation is organized can make a big difference in what self-dealing (sometimes litigated as “misappropriation of corporate opportunities”) is allowed. The New York Times pointed out the advantages of Nevada incorporation over Delaware for the major owner of Dish Network’s possible purchase of LightSquared, Inc., a broadband wireless company. See http://nyti.ms/1bfXsQe. The story…

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New IRS “Social Benefit” Entity Rules

The Internal Revenue Service has announced that it will publish draft guidance defining “candidate-related political activity” as outside of the “social benefit” activity which can qualify an organization for income tax exemption under Section 501(c)(4) of the Internal Revenue Code. See http://tinyurl.com/q2c88gc. This category of exempt organization has been used in recent election cycles to allow…

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