Suppose you’ve been doing business with a company that owes your Maine-based business money or has been late in paying for services you have provided. You might have even filed a lawsuit to obtain the payments. But then you receive a notice that the company has filed for bankruptcy. Filler & Associates has come up with some  Continue Reading »

Most business owners want a retirement plan that meets the following criteria: Current tax benefit on contributions. Ability to minimize or avoid contributions when cash flow is tight. Only cover full time, long term employees. High percentage (70 percent or more) of every dollar goes toward owner’s retirement. Maine-based small business owners have some new choices  Continue Reading »

If you run your Maine-based business operations through two or more corporations, the different entities may share some of the same employees. If so, you may be able to save payroll taxes by using a common paymaster. This means that instead of having each business pay Social Security and Medicare tax for shared employees, the  Continue Reading »

If your Maine-based small business has customers that don’t pay their bills, there could be a last resort: You can deduct a bad business debt in the year it becomes worthless, as long as you’ve tried everything to collect. In order to get the write-off, you have to prove that the debt will not be paid.  Continue Reading »

A “working condition fringe benefit” is tax-free to your employees and deductible by your Maine-based company. To qualify for this tax-favored treatment, however, the expense must be “ordinary and reasonable” under the circumstances. In addition, if the benefit involves recreation, amusement or entertainment, the expense must be directly related to, or associated with, your small  Continue Reading »

In today’s economic environment, one major concern for many businesses, in Maine and everywhere, is maintaining a healthy cash flow. If your small business is feeling the pinch of a tight economy, and tight credit, its ability to manage cash flow is critical. Enterprises that successfully practice good cash management generally survive and prosper. Those  Continue Reading »

In one significant case, the Tax Court allowed a taxpayer to claim deductions for meals that stretch the limits of the traditional “sleep-or-rest” rule for business travelers. (Bissonnette, 127 TC No. 10) Background Generally, you can deduct 50 percent of your meals and all incidental expenses when you are away from home on business. The  Continue Reading »

If you are a Maine-based business owner and you own commercial property, you’re probably depreciating it over 39 years. That means that every year, you deduct 1/39th of the property’s value (excluding land) from your taxes. Depending on the value of your property, you could generate a million dollars or more in depreciation deductions over  Continue Reading »

When it comes to building wealth on a tax-deferred basis, the benefits of a 401(k) plan are too good to pass up. If your Maine-based small business doesn’t have a 401(k) plan, now is a good time to start one. If you already have a plan in place, there are ways to improve it and  Continue Reading »

The success of your Maine-based small business depends to a great extent on the quality of the contracts you sign. A good contract protects everyone, and a bad contract could ruin you. Every time you promise to exchange services or property, you create a contract, either written or unwritten. Oral contracts present several problems. They can  Continue Reading »