As a Maine-based small business owner, it’s important to be aware of two things. One is the break even point for every customer or client. The second is the status of all business prospects. If these two things are unknown, it might be time to consider the following steps. Small business owners and their managers  Continue Reading »

It can be very intimidating for Maine-based small business owners to seek out a bank when they need a business loan. Bankers obviously want to minimize their risks, and usually small business owners need the loan because they are trying to do something which could be risky. Repayment Gaining an understanding of the lending process  Continue Reading »

Maine-based small business owners are all used to hearing different excuses when trying to collect money owed to their companies. For these delinquent customers, the real objective is often to delay, either until some time further down the road when they will have more cash, or in the hopes that the account will eventually be  Continue Reading »

Sometimes courts face a hard choice, having to decide between equally compelling and competent valuations. Not so in a recent fair value proceeding in which the skills gap between the testifying experts made it easy for the court to pick the winner. Biz divorce: The petitioner and the respondent were the two owners of a  Continue Reading »

For small business owners, it may seem like all you need is a little business and financial knowledge to perform a quick calculation to determine a business’ value. However, experienced valuation professionals apply tested valuation approaches that are based on real world market data, and, importantly, they have strong verbal and written communication skills that  Continue Reading »

After a recent U.S. Tax Court decision, current deductions aren’t allowed for most expenses incurred during the start-up phase of a new business. When compared with the federal treatment of start-up expenses, it can be confusing for small business owners. Here’s what the rules for deducting start-up costs actually are: Deduct Section 162 Expenses Now  Continue Reading »

The U.S. Tax Court has held that payments received by a police detective on his retirement, for unused sick and vacation time, were includible in income. Based on that conclusion, the court rejected the taxpayer’s argument that a portion of the vacation time and sick leave should be excludible. That portion of the payments, said  Continue Reading »

It seems obvious that the best time to find out about possible culture differences between two companies considering a merger is before the deal is complete. One of the most common reasons for mergers or acquisitions to fail is concern about cultural integration. It has become a high priority for companies considering these transactions to  Continue Reading »

Cullifer v. Commissioner, 2014 Tax Ct. Memo LEXIS 204 (Oct. 7, 2014) In a multilayered tax shelter case, the IRS used the theory of transferee liability to pursue a $9 million claim against the petitioner in connection with the sale of company assets and company stock. Since the applicable transfer liability statute merely provided a  Continue Reading »

A simplified employee pension (SEP) is a good way to start securing a small business owner’s retirement, and the business can gain tax advantages right away. An added advantage is that setting it up and maintaining it is not very difficult. SEP Basics The SEP is mainly intended for self-employed people, including sole proprietors, partners,  Continue Reading »