Small business owners and executives would be smart to obtain business interruption insurance, and possibly contingent business income. The idea is that the policy will compensate the company for lost earnings if a devastating event forces it to temporarily stop operating. However, the calculations and details of business interruption coverage is quite complicated and mounds  Continue Reading »

You may be eligible for a research tax credit that can now be used to offset your federal payroll tax bill —if your small business engages in qualified research activities. The IRS recently issued guidance that explains how to take advantage of this election. This relatively new privilege allows research credits to benefit small businesses that may  Continue Reading »

Mattress Closeout Ctr. IV, LLC v. Panera, LLC, 2016 U.S. Dist. LEXIS 91881 (July 15, 2016) Courts are not looking to experts for creative ways to calculate damages. They want a calculation based on reasonable certainty. In a recent case, the court decided to throw out most of the plaintiff’s damages claims before the case  Continue Reading »

Maybe your Maine-based small business is ready to move to a bigger location, and you are interested in obtaining a commercial lease. A commercial real estate lease, like any other contract, can be negotiated. Do not use or accept a form lease submitted to you by another party. The lease should be slanted so that you  Continue Reading »

When considering the value of your Maine-based small business, you may not have considered what standard is used in the determination. It can be a fairly important question that affects how the valuation turns out. Any qualified valuation report should state the standard of value used in determining the value in the very beginning of  Continue Reading »

In order to deduct an expense as a business expense, it must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business, and a necessary expense is one that’s helpful and appropriate for your business. There are times when the IRS will challenge deductions claimed for  Continue Reading »

You may be considered part of the “sharing economy” (also known as the Gig or on-demand economy) in Maine if you provide car rides through a mobile app, rent out your spare room using an online platform or repair computers for local businesses on demand. Participation in this emerging method of distributing services can be a  Continue Reading »

Lacoste v. Lacoste, 2016 Miss. App. LEXIS 460 (July 19, 2016)  A recent Mississippi divorce case highlights the complexity of valuing a small family business as well as the importance of an accurate valuation to achieving an equitable distribution of marital assets. Neither party in the case retained an expert, prompting the trial court to  Continue Reading »

You may be wondering whether the expense of a contingent-fee arrangement with your attorney is deductible for federal income tax purposes. Unfortunately, the guidance on this controversial issue isn’t favorable to taxpayers in most situations. The federal income tax treatment of contingent fees paid to an attorney out of a taxable non-business judgment or settlement  Continue Reading »

Most business valuators offer two types of appraisal services. Formal valuations are the most common, and require significant time and in-depth analyses. Sometimes, however, a less formal calculation of value will do, as long as it’s not expected to stand up to outside scrutiny. Key Differences Formal valuations generate an official conclusion in accordance with the  Continue Reading »