Ask a CPA

Generally, you may lease or buy the location for your business. Supply and demand will figure into your decision. A surplus of commercial and retail space may give you the opportunity for some favorable leasing rates, but owning might also be to your advantage. Owning provides you with the tax benefits of capital appreciation of the property, interest expenses write-offs, equity buildup in the property, the potential for you to lease or rent space for additional revenue and having greater control over the property. Speak to your local CPA about the tax ramifications of buying or leasing and their recommendations of a reputable commercial real estate firm in your area.

If you’re planning on sharing responsibilities, profits and losses, resources and liabilities, then you should make a formal agreement. When everything is going right and you are making money you have a lot of best friends. When things are going great, you do not want one person saying they deserve more than the other. When, and if, your business is losing money, you will want a formal agreement. It is really in everyone's best interest to have a formal agreement when a business venture is involved. You may want to consider a partnership or corporation. Speak to your local CPA about the formation of the business entity.

All these terms refer to incorporated companies. A limited corporation or company is an incorporated business.

A limited partnership includes both general and limited partners. A limited partner is liable only to the extent of what he or she has contributed capital to the business. Limited partners are often investors that do not participate in the business decisions.

When you buy a franchise, you are purchasing a business which operates under the name and image of a large company. The concept is that you get the best of both worlds. The freedom of running an independent business and the security of working for a big company. The relative freedom and security will vary depending on the franchise. Generally, you will benefit from regional or national advertising. You get associated goodwill revolving around the larger company’s reputation and image. All franchise opportunities should be thoroughly investigated prior to purchasing one. Speak to your local CPA about your franchising opportunity.

When you buy a franchise, you are purchasing a business which operates under the name and image of a large company. The concept is that you get the best of both worlds. The freedom of running an independent business and the security of working for a big company. The relative freedom and security will vary depending on the franchise. Generally, you will benefit from regional or national advertising. You get associated goodwill revolving around the larger companies reputation and image. All franchise opportunities should be thoroughly investigated prior to purchasing one. Speak to your local CPA about your franchising opportunity.

An income forecast is an operating statement usually covering one year showing what the business expects to earn. It should include your operating costs, including financing costs and the income from sales. The bottom line result is the business net profit for the period.

Most businesses operate seasonally. They have busy periods and slow periods. They are cash rich at times and cash poor at other times. A cash flow statement helps determine whether the business will have enough cash to pay bills in the slow periods. It will help management know if and when they may need to look for financing.

The Social Security Act was signed by President Franklyn D. Roosevelt on 8/14/35.
Taxes were collected for the first time in January 1937 and the first one-time, lump-sum payments were made the same month. Regular ongoing monthly benefits started in January 1940.

Medicare was passed into law on July 30, 1965. Beneficiaries were first able to sign-up for the program on July 1,1966.