Buying a new business can be extremely risky. That’s why, before you sign on the dotted line, you should conduct an in-depth due diligence review. Whether you’re going to arrange for an asset purchase or an ownership interest purchase, a careful due diligence review can help you avoid exposure to liabilities, known and unknown. Want to avoid after-the-purchase … [Read more...]
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Here’s what every LLC owner needs!
Your LLC provides you with two important benefits: Limited liability Favorable tax treatment But be aware that your state’s LLC default rules and regulations govern your business as well as your members’ rights and responsibilities. Sometimes these rules are onerous, but don’t lose heart. Luckily, your state’s default rules can be overridden by an operating … [Read more...]
Tax planning & noncompete agreements
When you buy a business, you don’t want the seller to turn around, create a similar new business, and start competing with you. Okay. That’s obvious, and you already know you’ll need a noncompete agreement. What you may not know is that noncompete agreements have very real tax consequences. Want to learn how the IRS treats your tax deductions as the buyer of a business … [Read more...]
Buying a business? Debt can be good!
We’re always told that debt is a bad thing. That’s generally true except when debt is a good thing. Like when you’re about to buy a business and operate it as a C corporation. That’s right. The IRS treats corporate debt more favorably than corporate equity. So it may be a tax-smart move to include some debt (owed to outside lenders) and/or some owner-debt (owed to … [Read more...]
Why an HSA beats a traditional IRA!
Ask “What’s the best way to save for retirement?” and most people will mention an IRA. But I think you should first consider an outstanding alternative to the traditional IRA… a Health Savings Account (HSA). Important: Don’t think of an HSA as merely a way to pay for medical bills. In reality, an HSA is a powerful way to turbocharge your retirement savings and in many ways, … [Read more...]