Slow-moving inventory is easy enough to discount or liquidate, but there’s another option that can give your Maine-based business more of a benefit: donate that stock or computer equipment to charity. In general, when you donate inventory or property used in your business, your write-off is limited to the cost of the items or property.  Continue Reading »

If you are thinking about converting your C-corporation into an S-corporation, you must plan ahead to avoid owing a substantial tax on gains recognized for 10 years following the conversion. The built-in gains (BIG) tax rate is the highest corporate tax rate, currently at 39.6 percent. If your company is liable, the tax is paid  Continue Reading »

A recent report from the New York Times makes it clear that aspiring business owners commonly use their retirement accounts to get their new ventures off the ground. But, as a recent tax court case illustrates, what may seem like a smart investment strategy can go awfully wrong when the budding investor disregards expert advice  Continue Reading »

In a previous article, we discussed the benefits of S-corporations for your Maine-based small business. Here we’ll delve further into the idea of S corporation conversion, as the federal self-employment (SE) tax doesn’t apply to earnings from an S corporation business. If you’ve reached the breaking point with high SE taxes, there may be a  Continue Reading »

What happens if you’re the owner of a limited liability company (LLC) that generates tax losses, and you don’t spend a lot of time in the activities of the business? The losses might be classified as passive, and your ability to currently deduct them might be severely restricted by the passive activity loss (PAL) rules.  Continue Reading »

When you take out personal loans to buy a Maine-based small business, you want to maximize the tax write-offs for the resulting interest expense. The tax law in this area can seem complicated. But if you do some research ahead of time and talk with Filler & Associates, you can get the best possible outcome. The first  Continue Reading »

Have you procrastinated in setting up a tax-advantaged retirement plan for your Maine-based small business? If so, you are paying income taxes that could easily be avoided and putting your retirement financial situation at risk. You can set things right by taking action and positioning yourself for tax savings in the future. This article explains  Continue Reading »

You’ve heard the phrase “two heads are better than one”. This can apply to Maine-based businesses and their intellectual property. When two or more companies agree to share their intellectual property so they both benefit, the payback can be considerable. Collaboration can result in increased revenue, and also the development of more intellectual property that  Continue Reading »

The broker and valuation analyst bring very different perspectives to the small business owner. The broker and business owner have the joint goal of finding the highest bidder. The valuation analyst has the goal of providing the business owner with an objective conclusion of value for widely different purposes. During the life of a business,  Continue Reading »

When using non-compete clauses in employment contracts, company managers should be mindful that such provisions are better able to withstand legal challenges if they are narrowly tailored. As an attorney, your business clients should consult with you before using these clauses. When an employee challenges a non-compete agreement, courts often look at whether the agreement  Continue Reading »