#LegalBytes: The Official Podcast of Cummings & Cummings Law

Attorney and CPA Chad D. Cummings dissects Illinois’ proposed constitutional amendment that would raise the top marginal individual income tax rate from 4.95 percent to 7.95 percent and push the effective rate on pass-through businesses as high as 9.45 percent. While 23 other states have cut their top income tax rates since 2020 and Illinois’ neighbors continue lowering theirs, Illinois is moving in the opposite direction and attempting to lock the increase into its constitution. This presentation breaks down how this surtax would primarily hit small business owners through pass-through income, accelerate the state’s already heavy outbound migration to Florida, Texas, and other low-tax states, and create even more pressure on the businesses that remain. Learn exactly how redomestication allows Illinois business owners to legally move their company’s domicile to Florida or Texas without creating a new entity, without dissolution, and on a completely tax-free basis while preserving their FEIN, contracts, credit history, and bank accounts. If you own a pass-through business in Illinois, this proposal makes the cost of staying far higher than the cost of acting. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings exposes California’s push for a recurring wealth tax on high-net-worth individuals and business owners. The principal author has openly stated the tax is not a one-time event and that if residents leave in response, “so be it.” While 23 other states have cut their top income tax rates since 2020 and Florida and Texas impose zero state income tax, California continues moving in the opposite direction by targeting accumulated wealth, not just income. For pass-through business owners, this means their company value itself could become part of the taxable base year after year. This presentation explains why redomestication is the strategic solution, allowing you to legally move your company’s domicile to Florida or Texas without creating a new entity, without dissolution, and on a completely tax-free basis while preserving your FEIN, contracts, credit history, and bank accounts. If you own a business in California and want to protect your wealth before the tax environment gets even worse, this could be one of the most important decisions you make. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation on the Tax Foundation's 2026 Facts and Figures report showing state tax collections per capita for fiscal year 2024. While tax rates get most of the attention, the amount each state actually collects per person reveals the true burden. California collects $6,754 per person. Florida collects just $2,726. New York takes $6,000 while Texas takes $2,816. That gap means thousands of dollars more extracted from every resident and business owner every single year in high collection states. This presentation explains why per capita collections are a far better indicator of fiscal pressure than any single tax rate, how these high collection states are driving away people and businesses, and why redomestication to Florida or Texas can dramatically reduce your overall state tax exposure. Learn how to properly move your company while addressing tax nexus and coordinating with your CPA to avoid costly mistakes. If you own a business in a high tax collection state, this data shows exactly why the cost of staying is rising every year. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation on what you are really paying for when you hire a licensed attorney. Filling out forms and filing paperwork is something anyone can do. What you cannot get from templates, chatbots, or document services is the exercise of professional judgment by a licensed fiduciary who is trained, examined, insured, and held legally accountable for the outcome. This presentation explains the critical difference between an attorney and a mere form filler, the fiduciary duties of loyalty, competence, diligence, and confidentiality that only a licensed attorney owes you, and why those duties matter when redomesticating your company. From analyzing operating agreements and state statutes to drafting a custom Plan of Conversion, sequencing filings, identifying hidden risks, and providing a comprehensive go-forward checklist, real legal representation protects you in ways no automated service ever can. Redomestication is a powerful tool when done correctly, but it must be performed with the skill and judgment that only a competent attorney and counselor at law can deliver. If you are considering moving your company to Florida or Texas, this presentation shows why working with a licensed professional is essential. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation on the Wall Street Journal report revealing a staggering 1.03 trillion dollar hidden infrastructure liability across 2,000 U.S. cities that does not appear on any balance sheet. Older cities like Philadelphia, Baltimore, and Milwaukee face massive deferred maintenance on roads, bridges, water systems, and public buildings that will eventually be paid for through higher taxes, fees, or reduced services. In contrast, growing Southern cities like Jacksonville, Florida, and Austin, Texas, are in far better shape thanks to stronger revenue growth and proactive investment. This presentation shows how these hidden deficits will drive future tax increases in struggling cities while low tax, high growth states continue to attract businesses and residents. Learn how redomestication allows business owners to legally move their company to a new state without creating a new entity, without dissolution, and on a completely tax free basis while keeping their FEIN, contracts, credit history, and bank accounts intact. If you own a business in a city facing massive hidden infrastructure costs and rising taxes, this could be the most important strategic move you make. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation on why keeping your CPA fully informed is essential before, during, and after redomestication. While redomestication itself is a tax-free legal process under the Internal Revenue Code that preserves your company's FEIN, contracts, credit history, and tax attributes, it does not handle any of the critical tax compliance work. Your CPA must manage final tax returns and account closures in the prior state, new registrations and filings in the new state, franchise tax obligations, payroll tax updates, sales tax permits, apportionment, and local tax requirements. Failing to coordinate with your CPA can lead to penalties, interest, audits, and administrative dissolution years later. This presentation breaks down exactly what your CPA needs to handle by tax type, why the attorney and CPA must work together, and how proper planning ensures a smooth transition with no surprises. If you are planning or have already completed a redomestication to Florida or Texas, this information could save you significant time, money, and stress. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation on a critical step many business owners miss after redomestication. Just because your company is now domiciled in Florida or Texas does not mean you are done with your old state. If you still have customers, employees, inventory, or other business activity there, you must register as a foreign entity in that state. This presentation explains the key difference between changing your company's legal domicile and the separate requirement to register as a foreign entity wherever you continue to transact business. Failing to register can result in fines, back fees, denied access to state courts, and even personal liability for owners. Learn exactly when foreign registration is required, what the penalties are for noncompliance, and how proper planning protects your company and your ability to enforce contracts. Redomestication moves your company's legal home and delivers major tax advantages. Foreign entity registration keeps you compliant in every state where you operate. Both steps are essential. If you have redomesticated or are planning to, this presentation shows you how to do it right and avoid expensive mistakes. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation exposing a costly mistake many business owners make after moving to a low tax state. Just because you changed your personal residency, updated your address, and even redomesticated your company does not mean you have escaped your old state's taxes. Tax nexus is the legal connection that keeps your company liable for income tax, sales tax, franchise tax, and more in the prior state based on employees, customers, inventory, or economic activity there. This presentation clearly explains the critical difference between changing your company's domicile and actually severing tax nexus, why involving your CPA from the very beginning is essential, and the exact steps needed to properly close tax accounts and avoid back taxes, penalties, and interest. Redomestication is the correct legal first step to move your company to Florida or Texas while preserving your FEIN, contracts, credit history, and bank accounts with no new entity and no federal tax consequences, but it must be coordinated with your CPA and a real reduction in business activity in the old state. If you have moved or are planning to move your business, this presentation could save you tens of thousands of dollars. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation on the Tax Foundation's 2026 state and local sales tax data that most business owners overlook. While everyone focuses on income tax and property tax, the combined sales tax burden adds another heavy layer in high tax states. California hits 8.99 percent combined sales tax on top of its 13.3 percent top income tax rate. New York, Illinois, and New Jersey pile on similarly punishing rates across multiple tax types. In contrast, Florida offers a 6.98 percent combined sales tax with zero state income tax, and Texas has an 8.20 percent combined sales tax rate with zero state income tax protected by its constitution. This presentation shows how these stacked taxes destroy wealth for business owners operating pass through entities and why moving your company to a new state can change everything. Learn how redomestication lets you legally transfer your company's domicile to Florida or Texas without creating a new entity, without dissolution, and on a completely tax free basis while keeping your FEIN, contracts, credit history, and bank accounts fully intact. If you are tired of paying double trouble in taxes, this presentation reveals the smart strategic move every business owner in a high tax state should consider. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this powerful presentation on the surging trend of American workers moving abroad, with the share of U.S. based employees working overseas more than doubling from 2.7 percent to 6 percent in just five years. Tech professionals are leading the charge, as remote work flexibility and better work life balance offered by foreign employers become increasingly attractive. This presentation explains why business owners must pay close attention, because the state where your company is domiciled still determines your state income tax exposure even if you or your team work remotely or internationally. High tax states like California, New York, New Jersey, and Illinois continue to tax pass through business income at rates up to 13.3 percent regardless of where you actually live and work. Learn how redomestication allows you to legally move your company to Florida or Texas, where there is no state income tax, while keeping the same legal entity, FEIN, contracts, credit history, and bank accounts intact with no new entity formed, no dissolution, and no federal tax consequences. If you own a business and want to protect your income in this new global reality, this presentation shows you the smart, proven solution. Learn more: https://www.cummings.law/redomestication/