If you’re going to sell your business, your prospective buyer will want to check things out carefully before they sign on the dotted line. This investigative process is called “due diligence” and you can’t blame the buyer for wanting to examine the merchandise carefully. The last thing they want is exposure to your business’s liabilities (known or unknown). Want to know … [Read more...]
Choice of entity
Sorted by Date
Tax Court Puts Personal Service Corporations on Notice for Bonuses
If you’re running a personal service corporation, be aware that a recent tax court ruling can mean bad news for you. You see, the IRS knows that if you’re operating a personal service corporation, you’re probably trying to increase your W-2 income in order to zero out corporate income — income that’s subject to the flat 35% tax rate. That’s why the tax court recently ruled … [Read more...]
Selling your business? Cut your tax bill!
When it comes time to sell your business, smart tax planning is essential. And our new article can help. It’s important to know that when you sell a business that has zero-based receivables and/or self-created goodwill, special tax-planning considerations should be taken into account. And if you operate as a C corporation, you need extra planning because you may be exposed … [Read more...]
How to sell your business using a “contingent” price
When you sell your business, price isn’t the only thing to consider. You also have to take into account the tax implications of the sale. The good news is that Uncle Sam will work with you when you and your buyer structure a “contingent sale” — also know as an “earn out” deal. You’ll get all the details when you read my new article titled Tax Tips: Selling Your Business … [Read more...]
Rent equipment to your corporation!
It’s a fact … Renting equipment to your corporation is a tricky business. To keep the IRS happy, you have to know the ins and outs of Section 179 expensing. Handle things the right way and you could save a bundle. Make a mistake and you could be inviting an audit. But don’t worry. We’ll explain the intricacies of the law in easy-to-understand language when you read my … [Read more...]