Now that you’ve closed on your purchase of a business, what are you going to do? Sit back and watch? Closely managing the transition from the former business to your new business is the recommended task at hand.
However, managing the transition presents a number of challenges.
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On many occasions, I’ve seen entrepreneurs embark on operating a family-owned business and thinking that it’s going to be easy to be successful or that there won’t be any of the problems typically encountered in an non-family scenario.
In many cases, however, these assumptions rarely turn out to be the case.
Many of the issues arising in a family business scenario are unique, and it is wise to plan for these accordingly. For example, working with loved ones can give rise to conflicts otherwise not encountered in a non-family scenario.
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One of my favorite sayings is “the only constant is change.” This saying certainly holds true in the business realm where it seems that the mandate is also “growth and go.”
Experience seems to show that upon the purchase of a business the new owner needs to roll-up his or her sleeves and really get to work.
The following steps, as noted by Business Daily, help to summarize a recommended agenda for a new business owner to focus on:
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With so many possible deductions and credits available to the individual taxpayer it’s no surprise that the possibilities can get easily lost in the shuffle.
This article identifies some of the tax breaks that frequently get overlooked by the individual taxpayer. The points below will help reduce the confusion of what can and cannot be deducted in your 2016 tax returns.
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The core problem for every entrepreneur and small business starting out is the same.
They need cash.
That holds true whether it’s a brand new business who needs cash to realize a great idea or a company who just needs to gain a competitive advantage and achieve growth.
Part of it, of course, is acquiring hard assets—equipment, real estate, office space, warehouse space, technology—and soft assets, such as regular, reliable employees and, occasionally, consultants who help guide the direction of the business.
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“And they’re off!” If you’ve ever been to a horse race, the phrase should sound familiar. Those words apply now: the rush to file a complete and accurate tax return on time has begun.
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Since 2015, when the Fixing American’s Surface Transportation Act was passed by Congress, world travelers who owe the IRS money have found that it’s no fun to owe a tax debt. In fact, it can ground any and all international travel plans indefinitely.
As noted by Jim Buttonow of Accounting Today:
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Last month we featured an article that provided a general overview of the types of bankruptcy available to debtors who have hit hard financial times. We addressed the fact that despite the purpose of bankruptcy, that it is supposed to be a mechanism for giving the debtor a chance for a “fresh start,” the ramifications of declaring bankruptcy are far reaching and drastic, to say the least.
The article made the following points:
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Why would any article discuss how to sell a home in winter? Besides some surprising strategic rationale (which we’ll discuss in a moment), the reasons are simple:
- Your home is likely the most significant piece of your investment portfolio
- You will eventually purchase and sell your home several times
- You should be knowledgeable about selling your home at any time of year
But believe it or not, research shows that listing your home during the winter season might be the smart thing to do for both the seller and buyer.
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It’s no wonder that the word “bankruptcy” sends shivers down the backs of debtors who have hit hard financial times. Despite the system’s intent that bankruptcy works as a mechanism for giving the debtor a chance for a fresh start, the ramifications of declaring bankruptcy are far reaching and drastic, to say the least.
Debtors facing foreclosure or excessive debts are too often under the misconception that declaring bankruptcy is the perfect solution to these problems.
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So, you’ve decided you want to open a business? Have you given any thought to the type of business you want to open? Deciding what type of business you’re going to open is a key first step in the process of going into business. Everything you do will flow from the type of business you decide on opening.
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It’s frequently said that if you don’t plan for the future then you must be planning to fail. Hence, it’s fair to say that a business plan is widely regarded as a very important--essential, even--management tool.
A business plan is a written document that describes where you want your business to be in the future along with the resources you anticipate needing to achieve your goals for the business. These resources can take the form of financial funding (loans etc.), headcount, capital asset acquisitions, etc.
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If you happen to be in start-up mode you probably haven’t given much attention to the importance of keeping your personal and business finances separate from each other. This blog is certainly not limited just to start-ups, but also includes ill-informed businesses that are beyond the start-up phase of maturity.
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How do you determine how much to sell your service so that you can maximize your business’s profits?
Do you have a pricing strategy?
Do you have, and more importantly do you follow, a systematic approach for assigning a price to the professional services you are in the business of providing?
If the answer to any of these questions is “no” or sounds like a resounding “huh,” then this article may contain some valuable insights on how implementing value-based pricing model could be one of the more profitable decisions you could make for your business.
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President-elect Donald Trump has taken the “bull by the horns,” so to speak, and proposed a sweeping tax reform plan that will diminish what goes to the US Treasury in the form of tax revenues in the hopes of stimulating the economy. It should be worth emphasizing that the Trump tax plan is merely a proposal at the time of this writing, and Congress must still approve any final proposal that Trump and his cabinet create once Trump is sworn into office.
What follows is a brief discussion surrounding some of the more significant elements to the Trump plan.
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It is crucial to understand your small business’s tax responsibilities, and there are real risks if you do not. Mismanagement of your tax obligations can ultimately lead to liens, bank levies, collections and wage garnishments, just to name a few of the potential risks.
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Having to manage personal finances is one of the stressful realities that makes up a part of normal daily living. As a single person managing his or her finances, he or she doesn’t have to be concerned with coordinating financial management efforts with anyone else. However, if the scenario involves a couple, such as a husband and wife, an entirely new dynamic is introduced. In theory, at least, there should be some sense of coordination between both members of the couple. What affects one member of the couple affects the other member of the couple, right?
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Before making your next donation to your favorite charity you might want to do some research. Do you really know to whom you’re donating? Do you know the charity’s stated mission? How much of your donation goes toward achieving the charity’s mission? How much of your donation goes toward “overhead” (officer compensation – other than toward the charity’s mission)?
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Expanding a company’s business (or an aspect of its business) internationally might be a good thing. It all depends on a number of variables that need to be closely examined.
I happen to have some relevant first-hand experience in the area of expanding a company’s infrastructure across international boundaries, which, in a very real sense, is similar to introducing a new business or product line across international boundaries.
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When a real estate investor or consumer puts money in the residence where he or she will live, that investment is often among the most expensive that he or she will make. This article will shed light on some of the more significant considerations that need to be made by the investor or consumer as he or she assesses and answers the ultimate question: should I purchase a home to live in or rent a home to live in?
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In the real estate lending world there is typically something called a “Pre-Approval” letter or a “Pre-Qualification” letter. The purpose of these letters is to communicate to the parties in the transaction that the borrower (whoever is trying to get financing), based on preliminary information supplied to the lender, will successfully obtain funding of the mortgage for which the borrower has applied.
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A disaster loss is a loss attributed to a casualty occurring in an area declared by the President of the United States to be a disaster area entitled to federal assistance. Thus, in order to qualify as a disaster loss, the loss must also qualify as a casualty. On the flip-side, however, a disaster loss is not a prerequisite to “casualty” status.
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Brexit is an abbreviation for the term “British exit.” On June 23, 2016, a referendum was passed by voters in the United Kingdom approving the exit of the United Kingdom from the European Union. This disassociation from the European Union (“EU”) was met with a great deal of excitement from around the world, in addition to uncertainties concerning the impact on financial markets as a consequence from “the exit.” Market reactions toward the event were in some cases severe.
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In our May 2015 newsletter article “Understanding Reverse Mortgages,” we presented an overview of what reverse mortgages are all about. We described briefly some of the features of a reverse mortgage: how a reverse mortgage works, how borrower eligibility works (and what it takes to qualify for a reverse mortgage), and we touched on some of the benefits afforded to a prospective borrower by a reverse mortgage. The purpose of this article is to provide further detail on reverse mortgages and how they aid a borrower in reaching their financial goals.
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If you’re an investor who is looking to sell property, IRC Sec 1031 has good news for you: you can defer any and all capital gains by reinvesting the proceeds of your sale into new property. As IRC Section 1031 (a)(1) states:
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Many people use the term “tax planning,” but it is often misunderstood. It is the art of learning how to manage your affairs in ways that postpone or avoid taxes. Skilled tax planning means more money to save and invest, and it can make the tax season more of a financial boost instead of a financial burden.
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Did you know that under current law, any family or individual who pays a household employee more than $2,000 (2016) a year must withhold and pay Social Security and Medicare taxes, also known as FICA. The law mandates that all domestic workers, such as cooks, nannies, housekeepers and gardeners, are subject to this combination of tax types known as the “nanny tax.” Federal unemployment insurance taxes must also be paid if the household pays any number of employees a total of $1,000 or more in a calendar quarter.
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So what happens when you inherit retirement plans? It all depends on the type of account. It also depends on whether the beneficiary is a spouse. Those variables will determine the rules that govern how the inheritance is taxed and what options are available. These rules can be confusing and it’s highly recommended that you seek out professional advice to make sure that your understanding is valid before making any decisions that would have significant financial impact.
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With the amount of taxes the IRS already collects from taxpayers—as well as the ever-increasing cost of living self-employed—tax payers can ill afford to overlook claiming as many deductions as the IRS makes available. The income and expense situation of self-employed taxpayers are widely recognized as fertile hunting grounds for a wide variety of deductions.
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If you’re like me, then this is probably not the first time you’ve ever heard of rent-to-own as an alternative to more traditional methods of home purchase. Rent-to-own is frequently advertised as an option for those folks who are precluded from buying a home because of credit issues or the inability to come up with the cash for a down-payment.
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