Sales Tax impact on business…

Kerry Rice, Needham & Co Internet Analyst, just stated on business news that the impact of having to collect and pay sales tax on internet sales would impact Amazon’s bottom line. Amazon just fell by $40/share after market closing today. Assuming a 5% reduction in revenue would result in a 19% reduction in EPS (earnings per share). That brought a question to my mind. Most retail business in America is subjected to the requirement of collecting and remitting a sales tax to the states in which they do business. Business must bear the cost/expense to perform this collection for the state but is not reimbursed or compensated in any way. If they are one day late in filing their remittances, they are also subject to hefty fines. In light of that business cost,...

The corporation is not the enemy…

If the corporation is a person – and the hypothetical eight members of the BOD hire a CEO by employment contract – and compensate him greater than the corporation profits can fund – can the “corporation, as an individual entity” bring suit against the BOD for theft of assets, and undue danger of financial ruin? I have been advocating that a corporation is indeed a separate entity, from all employees, including Board of Directors, executive management – all with or without an employment contract. Yet – it is common news that members of the executive management staff are still knowingly putting the “entity” in financial danger and subjecting it to further fines of damages. Therefore, I think the corporate model...