As the end of the year approaches, small business owners need to meet with accountants or tax preparers to review tax-planning strategies. “Every accountant is going to be sitting with their entrepreneur clients in the next few weeks to see what they can do, both on the business- and the personal-tax side, before the end of the calendar year,” says Michael Custer, a CPA and principal at Kaufman Rossin & Co. in Miami. The end of the year is quickly coming upon us and we haven’t even had our Thanksgiving turkey. Regardless, if you’re a small business owner, it means…
Whether you make every deal for your business with a handshake or you fastidiously create, execute, and file away every bit of paperwork, you probably don’t like paperwork. And, you’re not alone. Unfortunately, a new IRS rule may involve even more paperwork for you, if your business gets paid by credit cards. As the Wall Street Journal reports, this year credit-card companies are required to track the dollar amounts that individual merchants get from credit card transactions. In turn, the credit card companies then report this information to both the IRS and the merchant on 1099-k forms. The IRS made…
Not so fast: With unique assets, things aren't always straightforward. More specifically, owners of unique assets – such as family businesses, legacy real estate and valuable art, coin and other collections – need to consider specialized risk management. When you own a small business, and especially if you and your family are the sole owners of a not-so-small business, it’s important to remember that personal planning and financial planning are not separate activities. Unique assets call for comprehensive planning; whether legacy real estate or a valuable collection, but this is especially true if the asset is a business. Financial Planning…
Bankruptcy can be a tough issue, especially to the small business owner whose customer has fallen on hard times. Problem #1: You’ve likely lost a customer for your products or services. Problem #2: You’ve likely lost the ability to collect the money the customer still owes you. Problem #3: The future potential bankruptcy “preference” may pull even more money from your coffers, as a Smart Business article points out. The bankruptcy of another means their ability to pay you is severely compromised, unless you’re “secured.” However, what if you were paid and the payment is deemed to have been a…
If you’re a small business owner and an entrepreneur, then you ought to check out the new patent law and the most major changes to it in some 60 years. With the stroke of a pen, President Obama recently signed the America Invents Act into law. You may not have heard much in the media about this new law, because both parties agreed to it. While the devil is in the details, and many remain to be seen, many regard the law as less than favorable to entrepreneurs. The biggest change is that instead of being a first-to-invent system (i.e.,…
Depending on who you follow, Congress has either delivered a great gift to entrepreneurs and inventors, or shackled them with a terrible handicap: the House last week passed legislation to overhaul the U.S. patent system for the first time in 60 years, making the effort one step away from being put before President Obama’s executive pen. As reported by The Wall Street Journal, the House managed a bipartisan maneuver with more than two-thirds of lawmakers from each party supporting the “America Invents Act,” passing it on a 304-117 vote. The overhaul essentially breaks down into two big changes. Firstly, it…
If you have an adult child asking you for investment capital to launch a new business, you may be strongly tempted to comply. It might be a good investment, or it might not. Either way, a recent article in The Wall Street Journal points out several things you can do to preserve both your capital and your relationship. Understand that most start-up businesses fail within the first few years, so there is a good chance that your “investment” will not pay off, or if it does, it may take longer than you expected. Decide now whether you are making a…
If you’re a business owner, you may be enticed by the idea of selling your business and walking away with the cash … but chances are you’ll have a hard time cutting ties with the business you built. A recent article on Forbes.com tells the story of a business owner of 25 years who finally decided to sell his business, since his sons had no interest in running it. He spent hundreds of thousands of dollars and a year of his time prepping to sell, but walked away at the last minute. Forbes calls this “seller’s remorse,” and it’s a…
The modern office runs on technology, and so too does the modern business, large and small. For the capable entrepreneur, as Reuters reports, mobile technology may even offer the means for a mobile workplace. “Telecommuting” has been around for awhile, though not always favorably (especially by employers). As the internet and mobile devices continue to shrink the globe, however, the process has become a snap and telecommuting has become a more acceptable and more popular way to work. With mobile technology, you can do your work at home, and even run your end of a business there… but why not…
You might be surprised to learn that the new tax law actually rewards business owners for purchasing large, gas-guzzling vehicles for business use. Surprised? Me, too. But, according to a recent article in the Wall Street Journal, that is the case. If you are a small business owner who uses a vehicle in your business – especially a large one – you should take note of this new tax break. The new rules apply to vehicles purchased after Sept. 8, 2010 and before January 1, 2012. So, if you’re in the market to purchase a vehicle for your business, you’ll…
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