Whenever a new president takes office, the business world speculates how their policies will affect corporate law and business. This speculation leads to some wild trading on the stock market, but business owners know they must take a more measured approach. The corporate lawyers at Structure Law Group are here to help you examine new Biden Administration policies and strategically plan for the effects they will have on your business.
The Biden Administration has made no secret that its tax priorities are widely divergent from the tax policies of the Trump Administration. In general, the Biden tax policies are designed to curb the large tax breaks for large companies and wealthy individuals that were widely available under the Trump administration’s tax policies. Biden’s Build Back Better Agenda is focused on improving financial security for the middle class by easing tax burdens. U.S. Bank reports that these changes could affect taxpayers who:
- Have trusts in place (or plan to create one)
- Have IRAs, 401(k)s, or other workplace retirement plans
- Own limited partnerships or S corporations
- Have an adjusted gross income (AGI) of $400,000 or more
- Have a modified adjusted gross income (MAGI) of over $10 million
- Itemize deductions on their tax returns
While these categories largely apply to individual taxpayers, the Administration’s policies also have significant financial implications for corporate taxpayers. By getting legal and tax advice early, your business can develop a comprehensive strategy for mitigating tax liabilities under shifting tax laws.
Data Regulation and Cybersecurity
Even in the early months of his presidency, Biden has sent clear messages about cybersecurity. On May 12, 2021, the President signed an Executive Order on Improving the Nation’s Cybersecurity. This Order was the result of a shocking attack on the Colonial Pipeline that threatened gasoline access for millions of Americans. In the wake of the attack, the Biden Administration pursued coordinated responses between the government and private sectors that could be vulnerable to attacks. These risks have not disappeared in 2022. In the wake of the Russian invasion of Ukraine, the Biden Administration has warned private businesses that they are the potential target of further cyber attacks. The Administration has taken a strong defensive position in preparing for and responding to attacks. Ultimately, however, businesses must be responsible about the security they use for sensitive data. Confidential client information, financial documents, trade secrets, and other sensitive data are all vulnerable to cyber-attacks. Businesses that fail to take reasonable precautions could be liable to employees and customers for the costs associated with a data breach. These companies may also have to answer to government regulators.
California Corporate Lawyers For Changing Business Regulations
The Los Angeles corporate lawyers at Structure Law Group are here to help you make strategic plans for all areas of your business. With tailored solutions, our business attorneys help companies mitigate tax and legal liabilities, reduce expenses, and prepare for efficient operations under changing laws and regulations. Call (310) 818-7500 to schedule a consultation or contact us online.