World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

Mergers & Acquisition FAQ – December 2013

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 deposit box that a friend knows of can be a good place as long as that friend knows where to get the keys.  Hiding documents in a book or in a safe that no one has the combination for renders the documents useless to both you and those that are trying to help you.

Q: My wife and I run a business together, how must we file our taxes?

A: If only one spouse owns the business and the other works as an employee, then you may file as a sole proprietorship under Schedule C on your Form 1040.  If the both of you materially participate in the company and you divide income according to ownership status, then a Form 1065, Partnership Return would be appropriate.

Q: How do you determine whether a worker is an employee or independent contractor?

A: Primarily, you look to the control that you have over the employee.  If you generally control the worker and methods the worker uses to perform their task, they tend to be classified as an employee.  If the worker has a fair degree of autonomy on the job, autonomy with finances, and less relationship with the principal, generally these workers can be classified as independent contractors.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors