Business Law Journal

As more and more businesses shut down or scale back due to the Coronavirus pandemic, Federal, State and local governments are quickly realizing that these businesses and their employees are facing devastating financial consequences. 

Many employers outsource some or all of their payroll and related tax duties to third party payroll service providers.  These related tax duties may include withholding, reporting, and paying over certain employment (i.e. FICA, Medicare, SDI) and income taxes to the Internal Revenue Service (IRS) and California Employment Development Department (EDD).

For a variety of reason, a business may desire to change its form of entity (e.g. convert from a limited liability company to a corporation) or change its state of organization (e.g. converting from a California corporation to a Nevada corporation) or merge with another entity.  In the past, if a nonprofit organization wanted to enact changes similar to these, it often was required to submit a new application for tax exemption with the IRS, which can be burdensome.