When you’re selling your business, an important step in the process is receiving a letter of intent (LOI) from a qualified buyer. The terms of an LOI can still be negotiated, but once signed by both parties, it’s a little…
When you’re selling your business, an important step in the process is receiving a letter of intent (LOI) from a qualified buyer. The terms of an LOI can still be negotiated, but once signed by both parties, it’s a little…
The IRS Chief Counsel determined that mobile billboards qualify for Code Section 199 Domestic Production Activity Deduction. In this determination, the taxpayer submitted a fact pattern based on two sets of facts. The first set of facts were billboards that…
Q: Should I incorporate? A: The three worded, simple question many small business owners ask of us! The legal profession will answer, in blank, “YES!” The accounting profession would generally answer, “Maybe.” Your creditors cringe at the thought. The fact…
Introduction The election is over. As a result, we have a Republican lead Congress. Now, maybe our politicians can get some stuff done! Additionally, it is that time of year again! Many people don’t want to think about it, but…
Waiting until the last minute is almost never a good strategy if you’re planning to successfully sell or transfer your business one day. The oldest baby boomers, people born between 1946 and 1964, turned 65 in 2011. Over the next…
Qualified Appraisal The Tax Court ruled for the taxpayer in a case where the taxpayer failed to get a qualified appraisal when one was needed. In this case the taxpayer donated and sold 65 acres to a local government and…
Q: Where is the best place to store estate plan documents? A: The best place to store estate plan documents is in a secure location that others know of and that is easily accessible. Storing the documents in a safe…
Introduction Last month we discussed The Comparables Price Method, The Capitalization of Earnings Method, and the Net Tangible Asset method of business valuation. This month we go on to discuss additional methods that are used and weighted in order to…
Prospect Partners is one of the largest and most active private equity buyers focused on acquiring companies with revenues of >$10M but <$75M. In September they released an article with this same title, and I thought it was so well…
Reasonable Compensation A Court of Appeals recently reversed a Tax Court holding involving reasonable compensation to a key stockholder/employee of a privately held corporation. In many situations, a high salary can be justified by having special expertise to operate the…
