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Karl A Weiss

Karl Weiss’s Answers

3 total

  • As a single person consultant, should I incorporate? If so, as an LLC, C-Corp, S-Corp, other?

    I hope to have several clients and work both from my home office as well as within my client's offices. Depending on growth, I may hire other employees or contractors. Thx

    Karl’s Answer

    Your questions implicate both legal and tax issues. From a legal perspective, it would generally be advisable to form some sort of limited liability entity from which to operate, especially if you will be hiring employees in the future. This will provide a certain level of asset protection, if you observe all the formalities of forming and maintaining such entity. Having a comprehensive insurance policy, however, is even more important.

    Notwithstanding the foregoing, you may be held personally liable for your own actions, which makes the limited liability issue somewhat of a moot point. While Washington tax law generally treats all entities the same for purposes of Washington excise taxes, from a federal tax perspective, each of the entities you have mentioned entails different tax treatment. Therefore, it is advisable that you consult a business/tax attorney to evaluate which type of entity would be best for your particular situation.

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  • I have been issued two Dept of Revenue tax Warrants.

    I could not pay at the time they were issued but can now, Can I now make payment and how do I go about this. I don't want action to be taken to collect but would rather take a more proactive approach.

    Karl’s Answer

    As you are likely aware, the tax warrant is a document that the Washington Department of Revenue uses to establish the debt of a Washington taxpayer. When a tax warrant is filed with the Superior Court in the county where the taxpayer owns real or personal property, a lien in favor of the State of Washington is created. The lien encumbers all real and personal property used in the business and owned by such taxpayer. It is under this lien authority that the Department of Revenue can enforce collections of the debt. In other words, a filed tax warrant enables the Department of Revenue to seize property (bank accounts, wages, and tangible property) to pay the debt. If a filed tax warrant remains unpaid after 30 days, a hearing to revoke the business’s tax registration endorsement may be held. If you can pay the entire amount (or even a portion of that amount), contact the Department of Revenue immediately at (800) 647-7706 and ask them to direct you to the proper person handling your tax account in order to try to avert collection actions by the Department of Revenue.

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  • I was gifted a car in washington state whats my tax

    what is my tax

    Karl’s Answer

    Washington use tax is intended to supplement the retail sales tax by imposing the same tax rate upon the first "use" of property recevied as a gift within Washington, where the donor has not paid retail sales or use tax with respect to such property. See WAC 458-20-178. If, on the other hand, a donor has paid retail sales or use tax with respect to the gifted property, the property generally should be exempt from Washington use tax under WAC 458-20-178(7)(d). Nevertheless, in the case of a vehicle the donee will have to establish proof of the exemption when they title the vehicle with the Washington Department of Licensing. According to the Department of Licensing website at, if the donor owned the vehicle for 7 years or more and is from a state or province which imposes a sales tax, it will be assumed that tax was paid on such vehicle and no additional proof is required.

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