Many small business owners would like to expand, in order to generate higher sales and increase profits. But before making moves to buy new equipment, expand your plant or implement a new business idea, you need to fully understand how the profit angle works. Many times an expansion plan boosts sales but not profits. You  Continue Reading »

When signing a contract, make sure to check the “notice” clause or provision. It lays out how you and the other party will communicate during the term of the contract. It states who the notice should be sent to, how it should be sent and delivered, and when it was deemed to be received. It  Continue Reading »

Employers can see advantages from hiring independent contractors for their Maine-based small businesses. They can be hired on a per-project basis and then let go when the project is completed. Also, independent contractors tend to be more experienced workers and therefore don’t require the supervision that can be necessary with employees. And you don’t have  Continue Reading »

Most lenders require the individual owner of a Maine-based small business to personally guarantee loans made to their business. This shows the owners’ commitment and helps ensure that the loan obligation is fulfilled. The problem is that the personal guarantee means personal assets are available as collateral. It opens an individual, or a husband and  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 »

Business owners routinely evaluate opportunities to reduce expenses. However, many organizations are unaware of the savings that can result from a business energy audit. Many of the savings from an energy audit are sustainable, and usually they are well received by employees and customers. Even better, your company may qualify for tax breaks for making  Continue Reading »

Incentive stock options offer tax advantages to employees, but they come with a tax price for your Maine-based company. The plan must meet numerous strict requirements spelled out in the law, and the company gets no deduction at any time. To receive preferential capital gain treatment, option holders must retain the stock at least two  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 »

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 »