taxes

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CPA/attorney and LAB member, Jeff Vandrew, on the difference between entity choice and tax status:

A single member LLC has a choice of the following tax statutes: disregarded entity (like a sole proprietorship), S-corporation, or C-corporation.

A multi-member LLC has a choice of the following tax statutes: partnership, S-corporation, or C-corporation.

A corporation has a choice of the following tax statutes: S-corporation or C-corporation.

Read (and respond to) Jeff’s comment in the LAB.

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Post image for Tax Deductions and Pro Bono Work

Many attorneys provide pro bono services for a variety of reasons: to gain experience, to transition into new areas of law, to network with other attorneys, and to do something good for others. Unfortunately, pro bono work can take up a lot of time depending on the case and client, and most attorneys would agree with Ben Franklin that “time is money.”

If you have taken on a lot of pro bono work, you might wonder whether the federal government values your time, as well. In other words, can the value of your time and services while providing pro bono legal services qualify as a charitable contribution that is deductible from gross income on your federal tax return? Unfortunately, in a word, nope.

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