Learning is a critical component to success.

If our ego is in check, we will recognize that there is always a new way to look at things.  In fact, the more we know, the more we realize that there is much more out there that we don't know.

There are many sources for additional learning.  Community colleges or universities are excellent places for continuing education.  Many have evening programs just for this purpose.  For those of us separated by distance from the nearest institute of higher education, many schools now offer certain programs or courses online. 

Evaluate your skills, experience, and interests, and then find programs to match. 

In addition to the university system, continuing education is available through credible seminars and courses offered by Fred Pryor Seminars, Dale Carnegie Training, and many others.  These programs are often less taxing on your time, affordable, and bring value to you as an individual.  Watch for them as they visit your city or go to their websites for more information.

Make a commitment today to expand your knowledge base through continuing education and training.  It pays.

In another court decision made this year involving the CFTB, the court ruled that a Nevada LLC with a California resident as the manager, which held ownership interests in other California partnerships and LLCs was "doing business" in California, and subject to the $800 annual tax.

The ruling supports the long-held position by the CFTB that any management activity - no matter how minor - that occurs in California will create a tax nexus there.  Here are the facts that existed in this specific case that led to the conclusion of the court:

One of the issues raised in the Northwest Energetic Services case mentioned in my last post, is the question of "when is a fee really a fee, and when is a fee really a tax?"

Norrthwest's attorney, Amy Silverstein, of Silverstein & Pomerantz, LLP in San Francisco, argued that the "fee" imposed by California was an attempt to replace lost revenue that the Legislature thought would occur with the passage of the California LLC Act in 1994.  Because the Legislature thought they would lose revenues due to the tax intricacies of LLC flow-through status, they had imposed two revenue-generating provisions:  an LLC annual "tax", and the LLC annual "fee".  But, just because it is called a "fee" doesn't make it a "fee".

A couple of years ago, I had occasion to call the California Franchise Tax Board while doing research for one of my books.  I had heard that California was imposing a state tax on all of the world-wide income of any LLC formed or registered in California, and I didn't believe it.  The concept was so ridiculous on it's face that I never dreamed that even the CFTB would stoop to such an unconstitutional low.  My phone call to the CFTB, however, confirmed what I had been told.  They were completely ignoring the U.S. Constitution, and were imposing all the tax that they could get away with.

Well, as I was cleaning off my desk this week, I came across some information that I originally read last April but never got around to posting, that forces the CFTB to change its approach to LLC taxation.

Today I read an article about a recent legal decision in the case of Tax Commissioner of West Virginia v. MBNA America Bank, N.A. that is not just a little bit disturbing.  This case, which was filed November 21st of this year, flies entirely in the face of everything we thought we knew about the application of tax nexus rules across state lines.

The previous standard had been the landmark case of Quill v. North Dakota, in which the United States Supreme Court ruled that nexus only exists when the seller of tangible goods has a physical presence in that state.  Now, however, the MBNA case abandons the requirement that physical presence is required in order for a state to impose a tax. MBNA, one of the largest credit card issuers in the country, had no physical facilities, operations or employees in West Virginia.  It marketed VISA and Mastercard solicitations through the mail and by telephone from outside the state.

Even with these limitations, West Virginia ruled that MBNA is responsible to pay state corporate taxes on their WV-connected income.  This is going to create a tremendous fallout, and a domino-effect in many other states.  Ultimately, it will end up at the U.S. Supreme Court, which could take a couple of years.

An often overlooked, but extremely valuable resource available to us all is our own community.  Within our community are other entrepreneurs, teachers, leaders, and gurus with expertise in a variety of subjects. 

We should be familiar with our own goals, values, strengths, and weaknesses.  If we are honest in evaluating ourselves, it should be easy to align ourselves with others who share our goals and values. 

Look into joining community organizations that not only share your values, but are also of interest to you.  If you haven't done so already, join your local chamber of commerce, register with The Better Business Bureau, join your relevant merchant association, or volunteer to serve your favorite charity or charities.  These organizations offer opportunities to network, to learn new skills, and to hone our leadership abilities.  You may be surprised at the opportunities that come your way via your activity within these community organizations.

So be active in your community.  Be a good citizen.  Keep your mind open to new ideas offered by others.  In doing so, you'll find yourself a little bit further down the Highway to Success.