If you own an unincorporated small business in Maine, one way to lower your self-employment (SE) tax liability is to convert your business to an S corporation. SE Tax Basics Incomes subject to SE tax include sole proprietorship income as well as partnership income that flows through to partners (except certain limited partners. These rules also  Continue Reading »

It’s important for small business owners to know who much their company is worth. To put it simply, it is worth what the highest bidder is willing to pay for it and no more or no less. Nevertheless, by taking all the relevant factors into account, the business can be positioned for the best possible  Continue Reading »

There are numerous uncertainties in the marketplace currently facing businesses. Tax laws could substantially change as President Trump and Republican congressional leaders work toward fulfilling their campaign promises. The estate tax could be repealed, and various laws and regulations (including the Dodd-Frank and Affordable Care Acts) could be repealed or revised, and interest rates and  Continue Reading »

When a business is sold, it may sell for more (or less) than the appraised value. Sometimes this doesn’t make sense to laypeople, but valuators understand that there are many valid reasons why price and value could be different. Small business owners that understand this subtlety are better positioned to make informed decisions. Price vs. Value Price  Continue Reading »

In today’s environment, it’s important for Maine-based small business owners to concentrate on the value of their company and what drives it, especially when considering putting it up for sale. This article is focusing on value drivers for operating businesses, and not businesses that are asset-based, like real estate or securities holding companies. Most commonly,  Continue Reading »

It is a good idea to know the reasons for a valuation to be able to take advantage of situations when it may be beneficial. Some reasons for obtaining a valuation are a necessity, such as for determining the value of the business interest in an estate. Other reasons are more elective, but nevertheless helpful  Continue Reading »

Recently, a new version of Form I-9, “Employment Eligibility Verification,” has been issued by the U.S. Citizenship and Immigration Services (USCIS). It’s dated November 14, 2016 and has an August 31, 2019 expiration date. Beginning on January 22, 2017, employers must use the new form, but until then, the version dated March 8, 2013 may also  Continue Reading »

Recently, the IRS announced that it is extending one of the deadlines for providing 2016 Affordable Care Act (ACA) information statements to recipients. Specifically, the due date for furnishing to individuals the 2016 Form 1095-B (Health Coverage) and the 2016 Form 1095-C, (Employer-Provided Health Insurance Offer and Coverage) is extended from January 31, 2017, to March  Continue Reading »

If you are an employee, a partner, a partner who doesn’t know it, or a combination of these classifications, there may be serious tax implications. Here are some recent developments that you need to know if you participate in a business that’s operated as a partnership or a limited liability company. IRS Position on Dual Status  Continue Reading »

The 21st Century Cures Act was signed into law by President Obama on December 13, 2016. In addition to funding medical research, accelerating cutting-edge treatments for rare diseases and adding significant reforms to the mental health system, the new legislation allows small employers to provide standalone Health Reimbursement Arrangements (HRAs) to employees without paying penalties  Continue Reading »