Small Business Services

There is no simple answer or formula for evaluating the price of your business. There are business brokers or appraisers that specialize in valuing a business. Some brokers believe that cash flow is the most important factor to consider. Some brokers use one of three possible calculations to determine cash flow. Earnings plus Interest plus Taxes = cash flow. Earnings plus Interest plus Taxes plus Depreciation plus Amortization = cash flow. Earnings plus Interest plus Taxes plus Depreciation plus Amortization plus Owner's Salary = cash flow. Other important factors to consider include competition, industry trends, balance sheet, income statement, gross margins, type and condition of equipment, customer base, and growth opportunities for company, owner's role, financial needs and goals, difficulty of someone else learning the business and how other companies of similar size in the industry perform. Speak to your local CPA or business broker to assist you in selling your business.

Yes. Taxpayers who own or operate businesses may be eligible for the following tax incentives: Business tax credits named the Work opportunity tax credit, and the Disabled Access credit. The Work Opportunity Tax Credit is a federal tax credit used to reduce the federal tax liability of private-for-profit employers. Employers can hire from 9 different targeted groups: Qualified TANF Recipients, Qualified Veterans, Qualified Ex-Felons, Qualified Designated Community Residents (DCR), Qualified Vocational Rehabilitation Referrals, Qualified Summer Youth, Qualified Food Stamp Recipients, Qualified Supplemental Security Income (SSI) Recipients Qualified Long-Term Family Assistance Recipients.

Sole Proprietors with business expenses less than $5,000, do not have a net loss from the business, use the cash method of accounting,do not have an inventory during the year, have only one business as a sole proprietor, have no employees during the year, are not required to file Depreciation Form 4562, are not required to file Office in Home Form 8829 and have no prior year un-allowed passive losses, may use Schedule C-EZ.

Restaurants employing at least 10 people must make a special report to the IRS of income and allocated tips. Generally, the IRS assumes tip income of 8%. The allocated amount is shown on individuals W-2 as tip income.

The Education Jobs and Medicaid Assistance Act of 2010 signed into law August 10, 2010 repealed the Advance EITC. After December 31, 2010, workers can not receive Advance EITC in their paychecks. Advance EITC is also known as AEITC or AEIC. Workers who received Advance EITC or AEITC on their paychecks need to file a tax return to report the amount received.

You may not deduct the cost of renting, maintaining or operating facilities to entertain. Examples of facilities would include yachts, boats, lodges, fishing camps, apartments, hotel suites or homes in a vacation area. The no-deduction rule applies to rent, depreciation, maintenance and operating expenses. It does not apply to the food and beverage costs incurred when entertaining in the facility.

Generally, the deduction for business gifts is limited to $25 a year for each recipient, if the gift is made to an individual or partnership.
There is no dollar limit on the deductibility of a business gift made to a corporation or business entity. Gifts to a corporation or other business entity intended for the eventual use or benefit of a owner, shareholder or employee is subject to the $25 limitation.

Whether you choose the actual auto expenses, including depreciation or lease payments, or use the mileage allowance method, you can still deduct the actual business tolls and parking expense costs.
You should maintain a record of the expenses and keep your receipts to verify the deduction.

In order to avoid any future problems and to avoid any mismatching reports with the IRS, you should include this amount on IRS Schedule B, both as a positive and negative amount. Enter the Form 1099-INT amount on Schedule B, line 1 as income. Enter the same amount as a negative adjustment on Schedule B, line 1 and enter "Nominee Distribution" as the negative adjustment description. Speak to your local CPA if you have any questions about the reporting of this incorrect interest.