Category: Private Business

Business borrowers aren’t just facing higher interest rates today. The terms of new loans have also become more restrictive. Nearly a quarter of senior loan officers reported tighter standards for commercial and industrial loans in the Federal Reserve’s second-quarter survey on bank lending practices. As banks rein in their lending practices, it’s important for business owners to put their best foot forward when they apply for credit. Here’s how to position your business in the best possible light on a… Read more ›

Health Savings Accounts (HSAs) are a popular way to help finance the ever-increasing costs of medical care. They essentially work like this: Individuals and businesses buy less expensive health insurance policies with high deductibles. To qualify in 2022, participants must be enrolled in plans that require them to pay at least the first $1,400 of medical expenses, $2,800 for a family before the insurance begins to pick up the tab (unchanged from 2021). The high deductible health plan is then… Read more ›

“I’ll do your family’s dental work for free if you build a deck onto my house.” If you’re in the construction industry, you’ve probably received an offer like this or made a similar offer to someone else in a different line of business. It’s a modern variation of the age-old practice of barter. What makes it especially intriguing in this day and age is the idea that you can exchange services or products with someone without exchanging money. Keep in… Read more ›

As business owners, reliance on employees and vendors to help your dealership run smoothly is par for the course. Sometimes, those vendors and individuals take advantage of situations to increase their profits. Vendor fraud involves payments made to actual or fictitious vendors for personal gain. It is a lucrative industry that can take tens to hundreds of thousands of dollars off your bottom line. Types of Vendor Fraud There is a good chance your dealership has experienced some form of… Read more ›

Acquiring a company will leave you with a long to-do list, which means you can’t devote all of your time to the deal’s potential tax implications. However, if you neglect tax issues during the negotiation process, the negative consequences can be serious. To improve the odds of a successful acquisition, it’s important to devote resources to tax planning before your deal closes. Complacency Can Be Costly During deal negotiations, you and the seller should discuss such issues as whether and how much… Read more ›

If you own a successful small business with no employees, you might be ready to set up a retirement plan. Or you might want to upgrade from a more-basic SIMPLE IRA or Simplified Employee Pension (SEP) plan. Here are two options — solo 401(k)s and defined benefit pension plans — to consider if you have healthy self-employment income and want to contribute substantial amounts to your retirement nest egg. Important: This article is geared toward self-employed individuals. That includes sole proprietors,… Read more ›

Sooner or later, your firm will encounter the issue of buying out a partner. This may be due to the partner’s retirement, death or other reasons. The federal income tax rules for partnership payments to buy out an exiting partner’s interest are tricky, but they also open up tax planning opportunities. The Basic Tax Rules Payments made by a partnership to liquidate (or buy out) an exiting partner’s entire interest are covered by Section 736 of the Internal Revenue Code…. Read more ›

The auto dealership group at Councilor, Buchanan & Mitchell (CBM) participated in a survey several years ago to determine how prepared dealership are for a succession planning process. The survey, which incorporated feedback from respondents nationwide, found that auto dealers are pushing succession planning back by more than 5 years. Furthermore, nearly 50 percent of the dealerships surveyed admitted that while succession is important, they haven’t dealt with it yet. The results of the succession planning survey, which continue to… Read more ›

Tax-free shopping returns to Maryland and Virginia in August for those looking for a good deal on back-to-school shopping and emergency preparedness items. Below are details on qualified items. Maryland Tax-Free Week | August 14 – 20, 2022 Which items are eligible? Clothing and footwear Qualified articles of clothing or footwear – $100 or less Backpacks – $40 or less Click here for frequently asked questions and valuable facts provided by the Comptroller of Maryland. Virginia’s 3-Day Sales Tax Holiday… Read more ›

If you’re entering into a commercial lease as a landlord or as a tenant, make sure the space is in compliance with public accommodation laws. Otherwise, you could find yourself paying a fortune in structural and design changes. Fortunately, there are tax breaks available to businesses that make building alterations to comply with the federal Americans with Disabilities Act (ADA). The law requires that disabled people have equal, or similar, access provided to the general public if any of the… Read more ›