The Coronavirus Aid, Relief, and Economic Security Act, or “CARES Act” was signed into law on March 27, 2020 and is designed to provide financial assistance to small businesses impacted by COVID 19. The U.S. Senate Committee of Small Business & Entrepreneurship has published an 11 page outline of the four...
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It’s tax time once again. No business owner wants an audit. Fortunately, only a fraction of small businesses get audited. Keep in mind that the IRS, and your state taxing authorities, have their hands full. And while it may seem like the case, they don’t have the time or resources to pour...
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You are buying a business and heard through the grapevine that if you do an asset purchase instead of a stock purchase, it will keep you from inheriting any of the liabilities that may have been incurred before sale. That is a pretty common belief, and generally sound advice.
Unless you’re already independently wealthy, obtaining financing to launch a new business takes thoughtful planning and lots of time and effort. This blog article briefly introduces many of the alternatives and weighs some pros and cons of the most common alternative funding sources.
If your startup costs are not...
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Partnerships Are Risky Ventures
All things being equal, partnerships are the riskiest form of business entity. Why? First, a partner can be held personally liable for the actions and omissions of his or partners. Second, similar to marriage statistics, the breakup rate for partnerships is exceedingly high. By some...
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Most startup companies, seeking or anticipating high growth, rely on some form of outside financing. That financing can take the form of incurring debt from a creditor (e.g. a bank loan), or selling equity, i.e., ownership, in the business. The variations on these sources are seemingly endless. This blog discusses the pros...
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Many business owners elect to end their fiscal year on the calendar year. This provides a great time to reflect on business plans and entity maintenance requirements. Failure to do so can not only stifle business growth and evolvement but may result in significant and unnecessary risk. While each business is different,...
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Every company, and its employees, wants the annually holiday party to be a fun celebration. Employer get the opportunity to demonstrate their appreciation for their workforce and all their collective hard work. Employees need to be mindful that a company holiday party is a unique event, and while celebrating, maintain a professional...
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Without a buy-sell agreement in place, business owners risk face unnecessary risk, and are open to events that can disrupt their business and decrease its value. It is estimated that three out of four business owners lack documented succession plans, (to include buy-sell agreements. If government estimates are correct, and nearly 52...
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Historically, between one half and one third of all small and mid-sized businesses will be sued in any given year. Over a business’s lifetime, approximately 90% will face litigation. While litigation costs vary depending on the type of lawsuit, today’s business owner can anticipate legal costs alone over $125,000. This...
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