Client Alerts

 

North Carolina’s New Sales Tax on Repair, Installation and Maintenance Charges

Beginning in March 2016, North Carolina sales and use tax will be assessed on most charges for repair, installation and maintenance services ("RIM services"). The North Carolina Department of Revenue has issued several Directives to attempt to explain how the new RIM services rules are to apply.  Unfortunately, some of the language in these Directives has simply added to the confusion. Background. Since January 2014, sales of "service contracts" have been subject to North Carolina sale ...
Read More

North Carolina Court of Appeals Affirms How Change of Domicile Saves North Carolina Income Taxes

The North Carolina Court of Appeals affirms the Business Court's finding that the Fowlers had changed their domicile from North Carolina to Florida and therefore could avoid substantial North Carolina income tax on the sale of their business. On August 4, 2015, in Fowler v. NC Department of Revenue, 2015 WL 4622 914 (August  4, 2015), the North Carolina Court of Appeals issued its decision and upheld the August 2014 decision of the North Carolina Superior Court in Fowler v. NC Department of ...
Read More

Client Alert – Recent Amendments to Dental Board Rules Pertaining to Record-Keeping and Unprofessional Conduct

The North Carolina State Board of Dental Examiners recently enacted amendments to several of its rules governing the practice of dentistry with an effective date of July 1, 2015.  Although many of the amendments were technical in nature and simply clarify existing rules, the Board has made several substantive changes to the rules that pertain to (1) record-keeping requirements and (2) the definition of “unprofessional conduct”.  Dental practitioners need to take note of these changes so as ...
Read More

The Importance of a Well Drafted Operating Agreement Following the Enactment of the New North Carolina LLC Act

On January 1, 2014, the North Carolina General Assembly enacted the new North Carolina Limited Liability Company Act under Chapter 57D of the North Carolina General Statutes (the “New LLC Act”) and repealed the former LLC Act codified in Chapter 57C of the General Statutes (the “Old LLC Act”).  Given that the new legislation replaces the Old LLC Act, it should be noted that the provisions of the New LLC Act apply to limited liability companies formed prior to the January 1, 2014 effecti ...
Read More

North Carolina Life Insurance Has Long Received Solid Protection From Creditors – But Only if You Follow the Rules

North Carolina has long provided its residents with special protection for life insurance policies against the claims of creditors.  Recent cases, however, have made clear that the protection is only afforded if the rules are followed explicitly. Creditors and sources of liability are everywhere these days.  The most obvious targets for liability are physicians and celebrities, but anyone could be at risk for a terrible car accident ruled to be their fault.  In the legal process, when som ...
Read More

Captive Insurance Companies – If You Haven’t Heard About Them Yet, You Will Soon

"Captive" insurance companies have been around for years and years, but passage of the North Carolina Captive Insurance Act now means that captive insurance companies can be domiciled in North Carolina. And indeed, the North Carolina Department of Insurance is promoting North Carolina as a "no red tape" state for housing captive insurance companies. Initially, captive insurance companies were usually formed outside of the United States, often in the Caribbean countries. Slowly but surely, how ...
Read More

North Carolina Court Rules That North Carolina Fiduciary Income Tax Law Is Unconstitutional – at Least as It Relates to Some Out-of-State Trusts

Recently, the Wake County, North Carolina Superior Court, in an unpublished decision by the Business Court, ruled that N.C.G.S. 105-160.2 was unconstitutional "as it applied" to one of the North Carolina beneficiaries of an out-of-state trust.  Kimberly Rice Kaestner 1992 Family Trust vs. North Carolina Department of Revenue, 12 CVS 8740 (April 23, 2015). A.     Background. North Carolina assesses income tax on the income of an out-of-state trust holding assets for the benefit of one or mo ...
Read More

For media inquiries, please contact: Erin Molinaro | ekm@crlaw.com