If you operate a business that collects payroll taxes from employees, always remember this: No matter what your corporate financial situation is, don’t borrow from the withholding tax fund. If that money isn’t there when it’s due, the IRS will crack down hard. All small businesses face downturns when cash flow dries up. Borrowing from  Continue Reading »

Every corporation in Maine must pay income tax at rates reaching up to 35 percent. But the tax burden is even larger for corporations labeled as personal service corporations. In that case, the tax rate is a flat 35 percent. Personal service corporations don’t benefit from the graduated rate structure as other corporations do. This tax law difference  Continue Reading »

It used to be that small business owners believed that all they had to do was serve their customers effectively and make sure that their stock maintained or increased its value. It’s now more usual, however, that business owners also must be concerned with their stakeholders. What are stakeholders? They include shareholders, of course, but  Continue Reading »

In the wake of the 1993 Daubert case, challenges against expert witnesses in stock valuation cases have found greater success. Still, not all Daubert disputes succeed. One case before the U.S. Court of Federal Claims helped clarify how one party can successfully challenge the qualifications or methodologies of an expert witness. The case involved a dispute over  Continue Reading »

There is generally no one legal structure that works best for all small businesses. The best choice depends on a number of things, including the number of owners, your tax situation and whether or not you have employees. A limited liability company (LLC) may be a good choice because it provides flexibility, low maintenance, favorable  Continue Reading »

Whether you’re setting up a new company in the Greater Portland area, or you’ve been in business for years, you need to evaluate which legal structure is best for your enterprise. No one option is best for every type of operation. The number of owners, taxes, and your business goals are all important factors to  Continue Reading »

Setting up and maintaining a SEP for your Maine-based business is probably easier than you think. The sooner you get started saving, the more secure your retirement will be, plus your business can gain tax advantages right away.  SEP Basics The SEP is a stripped-down retirement plan mainly intended for self-employed individuals and small corporate employers. If  Continue Reading »

Samson v. Western Capital Partners LLC (In re Blixseth), 2013 Bankr. LEXIS 1001 (March 28, 2013) “The Trustee … continues the fiction that [the debtor], one of the Forbes’ 400 wealthiest Americans in 2007, was insolvent during that very same year” is how the lender tried to defend against the plaintiff trustee’s suit for a  Continue Reading »

O’Rourke v. Burke and Hotchkiss, PLLC, 2013 N.H. Super. LEXIS 4 (March 6, 2013) Citing an authority on the going concern methodology but failing to apply the prescribed principles was only one of several critical errors an expert made when he assessed damages for a struggling bagel company related to its legal malpractice claim. In  Continue Reading »

Due to the current federal government shutdown, IRS operations are limited. However, the tax agency issued a release stating “the underlying tax law remains in effect, and all taxpayers should continue to meet their tax obligations as normal.” Here are some basic questions for taxpayers about what they should do during the shutdown, along with answers from  Continue Reading »