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Capital Gain VS Ordinary Income VS Worldwide Income

Capital Gain A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price. Capital gains may refer to “investment…

Bring money from Korea to U.S. or vice versa

The federal income tax is levied on the worldwide income of U.S. citizens and resident aliens and on certain U.S. income of non-residents. Once the income was taxed, it is not conflicted against the Foreign Exchange Control Law, thus, the funds can be freely transferred between countries in general. However, you must report to I.R.S. in…

Setting up credit facility such as L/C, B/A, T/R, C/A & Term Loan, etc.

L/C-Letter of Credit includes the following: B/A-Banker’s Acceptance T/R-Trust Receipts C/A-Cash Advance D/A-Document Acceptance D/P-Document Against Payment Running a business may involve the use of trade facilities and credit facilities. To utilize these facilities, many documents must be prepared and submitted to lenders for various screenings. As stated in the article titled in Adequate Bookkeeping…

Personal Financial Statement

Personal Financial Statement (PFS) is composed of the following: Statements of Financial Condition Statement of Changes in Net Worth Financial institutions, insurance companies and landlords/property management companies often ask to submit PFS to consider financial conditions of applicants. There is no standard form for PFS. Thus, in many cases PFS is prepared by entering the information…

Adequate bookkeeping and tax returns

Adequate bookkeeping is done by the following: Hard copies (paper documents) of unordinary transactions as well as on-going and routine transactions of a company should be kept Documents are to be divided into similar transactions or categories and kept together Correct information from documents must be recorded in accounting books periodically Firstly, adequately recorded books…

Penalty for hiring or continuing to employ unauthorized aliens

Penalties for Prohibited Practices Unlawful Employment Civil Penalties DHS may impose penalties if an investigation reveals that you knowingly hired or knowingly continued to employ an unauthorized alien, or failed to comply with the employment eligibility verification requirements with respect to employees hired after November 6, 1986. DHS will issue a Notice of Intent to…

Overview of Documents to Prepare in Hiring Process

1. Form I-9: Employment Eligibility Verification The purpose of this form is to document that each new employee (both citizens and non-citizens) hired after November 6, 1986 is authorized to work in the United States. There are 3 sections on Form I-9. Section 1, Employee: This part of the form must be completed at the…

Minimum Wage

1. Federal-Fair Labor Standards Act (FLSA) The Act applies to almost every private businesses and government/public institutions.In general, it requires employers to pay employees who are covered by this Act a minimum wage for the hours of labor. The hours of labor is defined as actual working hours plus the time referred as “engaged to…

Requirements for Money Service Business

Bank Secrecy Act(BSA) Requirements for MSBs Registration must register by the end of the 180day period beginning on the day after the date it was established renewal : registration every two years by Dec. 31 at the end of the two-calendar year period following their initial registration penalty : civil & criminal penalty is up to…

Process and required documents to set up a Business in California

1. Fictitious Name Any business that doesn’t use its legal name (the official name of the person or entity that owns the business) as part of its business name must comply with fictitious or assumed business name requirements. You can register the name with a government agency; the state, a newspaper company, or your County…