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 »

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 »

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 »

These days, anyone looking to form a new business relationship, especially one that involves credit, is wise to check out the risk involved first. After all, we know that even giant companies that once seemed untouchable may be teetering on too narrow a pedestal. With that in mind, various parties might be checking out your Maine-based small business’  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 »

When a professional corporation sells its assets or liquidates, one important tax issue is whether the corporation or the shareholder-employees own any appreciated professional goodwill. For tax purposes, goodwill is an intangible asset. It represents the value of a trade or business based on expected continued customer patronage due to its name, reputation, and similar  Continue Reading »