Andrew Rogerson's Blog, page 41

Maximize your business day

We could all use a little more maximization and automation in our daily lives to make our time and focus at work more productive. From self-brewing coffee pots to smart thermostats, there are a range of gadgets that can help make our hectic business lives just a little bit easier.

Here’s how you can optimize your daily routine to maximize your business day with these five gadgets:

Conserve Energy With the Touch of a Button

Nobody likes to do the dishes. Between the soaking and scrubbing, washing the dirty dishes is one of the most disliked household chores. Today, top-of-the-line technology is available that makes this tedious task just a little bit easier. High-tech dishwashers are made with smart sensors that use just the right amount of energy to wash a particular load, saving energy and time on this routine chore without getting your hands dirty.

Get Your Coffee Automatically

Start your mornings with a warm cup of fresh-brewed coffee, but not from the local coffee shop where the lines are too long. And don’t worry about brewing it yourself. Simply set your preferences with a programmable coffee machine and enjoy your brew the next morning, making hectic mornings a little less stressful. Gear Patrol cites the Bonavita Brewer as one of the top automatic coffee machines. This machine can brew up to eight cups of coffee in about five to six minutes, keeping it warm for hours with the help of a heated base. The drip-brewing system also takes up little counter space.

Set the Optimum Temperature at Home

Too hot? Too cold? Finding the perfect temperature balance for your business is no longer a problem with Nest. Described as a learning thermostat, Nest automatically adapts to your life and adjusts as the seasons change. This smart thermostat programs itself to your preferences in just a week. You can even check in on your thermostat while you’re away via your smartphone or device, as Nest also has a handy app. Plus, the easy-to-install thermostat is designed to save energy, which saves you money on your heating and cooling bills.

Wake up Naturally

There’s good reason to switch up your alarm clock. Sometimes alarm clocks can shock you awake, rather than wake you up gradually. Consider a light-up alarm. Similar to waking up with the sun, the Philips Wake Up Light beeps softly at the time when your alarm is set, but it also begins to simulate a natural sunrise 30 minutes before waking. This can leave you feeling more refreshed, less groggy and ready to conquer your day.

Get More Done

If you’re having trouble staying productive and getting work done while you’re at work, consider taking more breaks while on the job.

It’s true. By using the Pomodoro technique throughout your workday, you might actually get more done despite taking more breaks.

Developed in the early 1990s, the Pomodoro technique is a simple productivity measure that can be easily implemented into your daily life. Simply choose a task that you would like to complete, set your timer for 25 minutes and work on your task until the timer runs out. Following the end of the timer, take a short break and when you’re ready to get back to work start your timer over again. Every four times take a longer break. At the end of the day you might realize you’ve finished all your tasks and then some.

Are you thinking about selling your business? Would you like to know the value of your business? If you would like more information please visit my website Business valuation.

For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Maximize your business day appeared first on Rogerson Business Services by Andrew Rogerson.

Medical practice valuations with Terry Flanagan

Terry Flanagan, by profession is a business appraiser and therefore prepares business valuations.

What’s one of the many interesting things about Terry, though, is that his original training was as a Chiropractor where he owned and operated his own Chiropractic practice in the Chicago suburb of Palos Heights and so an important focus of the valuations done by Terry include medical practices.

Each Tuesday at 10.00am PST on radio station 105.5FM, I conduct a radio show called Money 2.0.

The purpose of the show includes interviewing business experts in a range of topics including selling a business, selling a medical practice, valuing a business, buying a business and buying a franchise plus all the responsibilities and challenges that come with owning and operating a business or as I like to say, where Wall Street meets Main Street.

You are welcome to listen to my interview with Terry Flanagan when he was a guest on my show on September 03, 2013.

Some of my questions for Terry when we talked about business and medical practice valuations includes the following:

What are the different reasons for getting a business or medical practice valuation?
What are some of the medical disciplines you have put together medical practice valuations?
What is the Stark Law and why is it important when valuing a medical practice?
What impact do you see with medical practice valuations and Obamacare?
There are different valuation credentials and accreditations. What are they and why are they different?
What set of documents do you typically need from the owner of a business or medical practice to prepare a valuation?
What are the more challenging types of valuation to put together?

There were many more topics covered during my interview with Terry; with the focus on business and medical practice valuations and the logic behind putting a valuation together to meet the necessary appraisal standards including being accepted in a court of law.

If you would like to listen to my conversation with Terry Flanagan on my show, simply click the following link: Business valuations by Circumference Valuations.

On this show there were two guests. If you just want to hear my conversation with Terry it starts about 28 minutes into the show.

The post Medical practice valuations with Terry Flanagan appeared first on Rogerson Business Services by Andrew Rogerson.

Business loans to buy a business

Looking to buy a business and need third party finance? The SBA program is a source of finance for buyers to use to buy a business and become an entrepreneur. The SBA loan program is sponsored by the Federal Government through the SBA or Small Business Administration. It is therefore a program backed by the US Tax payer.

For a buyer to qualify for a loan they need to meet a minimum set of criteria. This loan criteria is set by the SBA with all loan applications made through the national, state and regional banks that have been approved to handle loan applications.

An SBA loan is of great assistance to the buyer and seller of a business. However, it’s important to check the SBA loan performance data to find out which banks are lending; especially in Northern California as not all banks are willing to lend to all buyers in each industry.

Some banks prefer to not approve loans for certain industries as they are considered more risky such as restaurants while some lenders like lending for gas stations and liquor stores while others do not. The SBA loan program is not available for buyers that wish to buy a business that includes gambling or part of the sex industry. It’s also currently not available to buy a marijuana growing or dispensing business.

Read More: Here is more information about the benefits to the buyer of a business or franchise for an SBA loan.

In addition to loans being available to buy a business, they are also available to buy a franchise. The franchise can be an existing franchise owned by a franchisee or a brand new franchise opening in a local market.

Which banks are approving SBA loans

The SBA has its head office in Washington, DC. Spread around the United States are support or regional offices that provide different services including support to the lenders in their region.

The SBA has a regional office in Citrus Heights, CA. Citrus Heights is located in Sacramento County. Because the SBA is a government agency, they also provide reports to the public on SBA lending.

Click this link to see by bank from October to December, 2015.

If you wish to buy a piece of real estate with a building you will want to get an SBA 504 loan which requires a downpayment of generally about 10%.

If you would like more information about buying a business, buying a franchise or a related service such as valuing a business, please visit my webpage Services and choose from the options available.

The post Business loans to buy a business appeared first on Rogerson Business Services by Andrew Rogerson.

Selling Your Business in the New Year

It’s the New Year! That means changes and new beginnings.

Now your back to work in January, you may decide that it’s time to get back to a different type or work or a different type of business. Perhaps you already know you’re ready to go. But if not, here are a few signs that you may want to move on:

• No fun. Owning a business should be exciting. Yes, it can be stressful, but it should a “good stress” that drives you to do more. If it’s not, you may be tired and burnt out—a really critical issue for business owners, and a good reason to sell.

• Don’t want to grow. It may be that you don’t want to make the investment in time, money, and energy to grow the business to the next level. You may like where the business is right now, but you know that businesses have to keep growing or they get stagnant and may become less profitable. It’s a good time to value the business and look at your options for selling.

• Management skills not suited for bigger organization. Whether by lack of experience and training or just a natural aversion to keep your hands in the day-to-day operations, some business owners build their businesses to a point where they realize they would need more management skills or additional layers of supervisors to grow.

If you’re thinking of making a change, you’re not alone: six out of ten U.S. business owners plan to sell their companies in the next several years, which is a huge uptick compared to previous years.

Start exploring a change by gathering information on the process. In order to see the best return on all of your hard work, you should work with an experienced professional who can guide you throughout each and every step. If you’re thinking about selling your business and moving to your next challenge, contact me to know the value of your business and to discuss your next move?

For additional information, please visit my website Business valuation.

For more immediate help, please send me an email to Andrew Rogerson or give me a call at (916) 570-2674.

The post Selling Your Business in the New Year appeared first on Rogerson Business Services by Andrew Rogerson.

Maximum value from a business

Is your business creating maximum value?

One of the services I provide is a valuation to an owner that wants to sell their business. Almost without exception, the owner of the business overvalues their business. There are many reasons this happens but I think it mostly comes from business owners seeing shares trade on Wall Street based on the gross sales or gross revenue of the business. I have recently done valuations where the company value was just over $1,000,000 but the owner thought it was closer to $10,000,000.

Just as most business owners are unaware of the true market value of the business, most business owners are not sure how their business creates value or more importantly, how to calculate the value of the business or even the return on the investment made over the years of owning and operating the business.

In many cases, if not most, the business is the single biggest asset or investment of the business owner. To avoid treating the business as a ‘checkbook’ to pay the bills or as a job to feed the family and with little concern over the impact on either personal wealth nor the investment of time and money, the solution is to get a Business Assessment.

The Business Assessment looks at the strategies that build personal net worth as well as business net worth; maximizing the return to the business owner and their family. By understanding the value drivers of the business it then allows the owner to reduce the time and/or money in the operation or the amount of money they can extract from the business while still increasing the business net worth.

The Business Assessment also provides clear data on historical calculations, forward looking “what-ifs”, and the growth of personal net worth to the owner so they can accomplish either a retirement objective or the next business endeavor.

If you would like more information about the different types of Business Assessment, click on this link.

If you would like to see a sample 182 page Business Assessment that reports at enhancing the value of a company, click on this link

To create the Business Assessment, we use proprietary software and this includes providing you with a limited license so you can see specific changes in the business and how this impacts your personal and business net worth. In addition, this software helps educate on the relationships between business value, personal net worth growth, and the specific sales, costs, overhead, and profit within the business and clearly shows how one number, large or small, can make a huge dividend towards any end game.

A separate model demonstrates the relationships between business value, personal net worth, monthly contributions to retirement (or a desired level of liquid assets), and the performance of the business owners portfolio of investments to clearly demonstrate what they need to accomplish their overall life goals. Lastly, this software puts the acid test on the capacity to grow the business or shines a light on the underutilized capacity which has tremendous cost to the business and the owner.

After six months of licensed use of these tools, the owner can now focus on the direction of the business and operate with more effective objectives, and ensure the desired return on investment is managed with an ever watchful eye on the achievement of the end game.

If you’d like more information about how to transition out of your business, feel free to get in touch with me for a quick consultation. We’ll discuss your particular business, what’s important to you and make a plan for those first few steps.

The post Maximum value from a business appeared first on Rogerson Business Services by Anne Rogerson.

Covenant Not To Compete and Selling a Medical Practice

Successfully closing the sale of a medical practice is one of the more challenging and complicated business transactions.

When everything aligns and the seller and buyer are able to come together to do a deal, there is generally a detailed due diligence period as there are many items to review. This includes making sure the doctor buying the practice can get privileges at the nearby hospital, qualifying for the insurances and government programs and being patient while all this is obtained.

The list of items where the seller and buyer have to come together can be lengthy. In a transaction I’m currently brokering, the buyer has a checklist of items they wish to review as part of their due diligence and the list has 158 items. It’s extensive and exhausting working through their list in such detail. It’s also intimidating as an employee of the seller has to spend countless hours on it and its unknown if the buyer will then agree to close the sale.

Covenant Not To Compete and Selling a Medical Practice

An interesting item that has come up that’s important to both the buyer and seller is the Covenant Not To Compete.

A Covenant Not To Compete is normally an agreement that the seller will sell the medical practice and for a period of time, agree not to practice medicine in the immediate vicinity or geographic location of the practice.

The reason for doing this is so the buyer of the practice is not disadvantaged by losing patient business. Without a Covenant Not To Compete, there is little to no incentive for the buyer to acquire the practice and take the risk the patients will stay with the practice.

Covenant Not To Compete and geographic limitations

A Covenant Not To Compete has different complexities. It has the legal complexity as noted above in that it defines what the seller can and cannot do. In California it’s a little more complicated as the courts have recognized that a person has the right to work and be paid for their labor. However, the courts have decided that it’s also not right for the seller of a business to enter into a contract and receive compensation as part of a Covenant Not To Compete and then disregard it.

In the case of this transaction I’m working, it came up in a totally unexpected way as the sellers were part of an independent association. As they were planning to sell the practice they needed to resign from the association. The association however said the sellers could not go and work for another practice as it could have a negative effect on the association and therefore they were enforcing a Covenant Not To Compete; against the sellers.

Covenant Not To Compete and Goodwill

Another complexity with Covenant Not To Compete is the tax issue.

With the sale of the practice there is a need for tax purposes for the seller and buyer to agree on a Purchase Price Allocation.

The Purchase Price Allocation breaks down the total purchase price of the transaction for tax purposes to comply with IRS Form 8594.

This agreement lets the seller handle the treatment of his assets and the subsequent tax consequences with the IRS and likewise, going forward, the buyer can handle their tax responsibilities with the IRS.

Professional practices including medical practices may bump into a real tax issue when it comes to the Covenant Not To Compete and the Purchase Price Allocation as there may be a sizeable tax benefit to the seller to not treat the goodwill at the corporate level but at the personal level.

Almost all medical practices in California operate as a Corporation. If the practice operates as a C Corporation the seller will be taxed for goodwill at the corporate level and then again at the personal level. There are therefore considerable tax benefits not to have the goodwill allocated at the corporate level but at the personal level.

A Covenant Not To Compete and goodwill are complex pieces when selling a medical practice. The issues require the help from a legal and/or tax professional. My suggestion is to get good legal and tax advice early on in the transaction so the seller and buyer can come to an agreement rather than leave it to later in the transaction when deal fatigue can set in jeopardizing the ability of the sale to close.

Are you thinking about selling your medical practice and move to the next phase in your life? Would you like to know the value of your practice? If you would like more information please visit my website Sell a Medical Practice.

For more immediate help, send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Covenant Not To Compete and Selling a Medical Practice appeared first on Rogerson Business Services by Andrew Rogerson.

Business cannot sell if owner is the business

It’s a sad figure but according to the California Association of Business Brokers, approximately only 25% of businesses ever sell.

That means 75% of businesses never sell.

The reasons are many and to a certain extent they are complex.

They include a business being sold in the wrong part of the economic cycle, major changes affecting that industry in which it operates to the point it discourages potential buyers from taking the risk to buy a business in that industry, poor quality financial statements, a labor shortage as is happening right now in the construction industry as this industry was beaten up badly during the Great Financial Recession and more.

Business cannot sell if owner is the business

An important reason that some business owners miss when trying to sell their business is that it will be too hard to sell because the owner or seller is the business.

To say this another way, if the owner steps away from the business, it runs the risk of being unable to continue to generate its cash flow at its current level. As a result, that risk is too high for a buyer being willing to buy the business and hope they are wrong.

Recently I spoke with the owner of a franchise that installed blinds and window coverings etc. He was the owner of his franchise for many years and was very successful. The business model was for him to track down all sales leads and close the sale. Once the sale was closed, he’d hand the customer across to a third party to make the product and then another third party to do the installation if the customer didn’t want to do the installation themselves.

Now that it had come to a point where he was wanting to retire, he was looking around for his exit options. Through a number of conversations we had together, he realized how difficult his business was to sell. There were many reasons but the main reason was that he was the business. His franchise agreement had a sales territory in which he could operate but the franchise territories either side of him were available to buy. He was hoping to get a $350,000 to $400,000 sales price; a reflection of the cash flow he was able to generate from his territory.

However, to buy a franchise territory neighboring his came with a cost of $35,000 plus another $45,000 to buy a vehicle, attending training, contribute to marketing funds and more.

How the seller fixes not being the business

To make the business attractive to a potential buyer, build the business so the owner manages and is not the key asset in the business. That is, build the business and indeed run the business around human assets in the business but assets that can quickly be trained and brought up to speed when the situation requires.

In the example above, buy three or four or five franchise territories and put salesmen in each territory. The owner of these territories now manages the sales people by training and motivating them…and enjoying the fruits of their labor.

Once this is running properly, now look to expand into areas that complement the sales or performance of the business. For example, hire and train a team to make the blinds and window coverings so you can turn items around quicker. If they are good at what they do, look to get additional work from other sources so they are a successful standalone business unit.

Once this operates successfully, now hire a team to do the installation.

If they are good at what they do, look to get additional work from other sources so they are a successful standalone business unit.

If the above makes sense, simply repeat and execute the same model.

The key piece is to now get all this operating efficiently, coming up with new ideas to see what else you can add to the sales mix to grow and expand the business. This is at the heart of being a successful entrepreneur.

How about considering outside shade and awnings, or adding bedding and linen, or inside home décor items to complement the new blinds or home security systems and more? Very often these add on sales are very easy to achieve as the sales person has built the relationship, which is the hardest thing to do.

Are you thinking about selling your business and move to your next challenge? Would you like to know the value of your business? If you would like more information please visit my website Business valuation.

For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Business cannot sell if owner is the business appeared first on Rogerson Business Services by Andrew Rogerson.

Questions to ask when buying a franchise

“You can never ask too many questions” doesn’t appear to be a quote attributed to anyone.

However, when buying a franchise it’s true. You can never ask too many questions.

Additionally, you only officially buy a franchise once you sign a contract. Before you officially sign your contract and get on with the hard work of building your franchise, use your time and energy to make sure this is the right investment for you.

As a franchise buyer there are many resources available to you. However, mistakes are made or franchise buyers buy the wrong franchise.

Just like life, there are no guarantees. However, to help increase your chances of successfully buying the right franchise, here are a set of questions to help your evaluation process.

Don’t try to ask all these questions in your first conversation with the franchisor. Just as you want to make sure this franchise is right for you, the franchisor also wants to make sure you are a suitable member of their elite group. If they don’t think you are a good fit then their answers to your questions will be unhelpful while they do their best to encourage you to look somewhere else.

Each question comes with my reason for asking that question or additional questions to ask. As I said earlier, you can never ask too many questions.

If you sense there is a hesitation or the answer lacks clarity, don’t push too hard at that moment but come back a later time and ask the same question but just a little differently.

Questions to ask when buying a franchise

I’ve learned through my research that before I can buy a franchise I must receive from you the Franchise Disclosure Document or FDD. Does your FDD disclose what I can expect to make if I buy a franchise? Does it disclose what current franchisees are making? If not, why not?

 There may be different reasons why they do or they don’t. If they don’t it may be because it’s a newer franchise and they don’t have any meaningful data. There will be a reason. If the reason doesn’t make sense to you, look for another franchise opportunity. Also remember that you are able to speak to current franchisees so this is a question you can run past them.


Does your franchise offer any financial assistance such as a loan?

A franchisor is not a bank so don’t expect them to be too forthcoming with finance. Some franchisors do offer finance so there is no problem in asking. If they say yes to your question, ask for more details including what you need to provide to see if you would qualify for any of their finance.
The franchisor may have been approved by the Franchise Registry which is organized by the SBA. This means your loan application process should be quicker and easier as there are lenders that have agreed to execute an SBA loan to a qualified franchise buyer.
If yes what steps did you take?


If I am following the franchise model and find I’m not being successful, what assistance can I expect?

It’s in the interests of the franchisor for you to be a success. A franchisee that fails needs to be disclosed on the FDD. However, you have no interest in buying your franchise and failing. Understand everything that will be available to you to help you succeed.


This question may sound too simple but ask early on in your franchise buying process, what are the key 3-5 ingredients that make a franchisee successful?

Your reason for asking this simple question is to provide you with a quick reality check. If you lack one or more of the key ingredients, perhaps this franchise is not for you or maybe you need to ask deeper questions.


The FDD will show the franchise agreements that were in place and terminated by the franchisor.

Ask for reasons why these franchisees had their agreement terminated. Also, be aware that the franchisor will be limited in what they can disclose as there may have been confidential settlements.


How long does it take for a franchisee to achieve breakeven? Some follow on questions include:

Can you give me a summary of the shortest and the longest timeframes?
What were the reasons behind the longest time frames? Does it vary with each state in the US?


How much working capital do I need to operate my franchise?

This question ties in with the previous question. You want to know how long before you breakeven but just as importantly, you need to know how much money you will need before you start making money and if you have that money available or where you get it from.


How do you determine the franchise territory I will buy?

This question provides information at a couple of levels. It helps understand the franchisors business model with territories; which is one of the most important assets you are buying.
It also provides an opportunity to learn the location of the franchises near to your territory and how they operate.
It also provides an opportunity for you to go and visit these franchisees and get a better understanding of how the franchise concept operates.


Are franchisees part of an independent franchisee association?

Some franchisors welcome their franchisees having a separate group or association so they can discuss and come up with solutions. Often it happens as a by-product of local franchisees coming together to discuss and implement local marketing be it on radio or TV etc.
If a franchisor is not in favor of the idea, make sure the reason makes good sense.


How is the national the advertising fund spent?

This question is an extension of the last point above. An additional question to ask is if franchisees are involved in the decision making? The answer is important as you want to know why if the answer is no. If the answer is yes, ask if you can be involved as this is a great way to understand what’s happening in your franchise system.

The franchise evaluation process is probably the most important process to successfully buy your franchise. One of the best parts is that you can ask any question and expect an answer. Sometimes the answers will come further into the franchise buying or qualification process so don’t be surprised to hear that the answer to this question will come later.

If you would like more information about buying a franchise please visit my webpage Buy a franchise or buy a copy of my book – Successfully buy your franchise.

For more immediate help with buying a franchise, send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Questions to ask when buying a franchise appeared first on Rogerson Business Services by Andrew Rogerson.

How to Impress Your Potential Investors

Whether you’re growing your small business or getting serious about a startup, you might need the help of an investor to get things rolling. Use these tips to impress potential investors and win their support.

Simplify What You Do

David Hulston, a seasoned angel investor with more than 30 years of experience, told Dan Martin in

an interview with Business Zone that business owners looking for new investors should be able to articulate what their business does in a few simple words. Hulston asks, “Can you describe what you do in a tweet?” Paint a picture, a simple and easy-to-understand picture, of what you do and use it all the time so that others can better understand your business.

Fine-Tune Your Business Model

If you’re thinking “What business model?”  you need to get to work, stat. Most investors won’t even consider investing in a company that lacks a clear and concise business model. Your business model should be as detailed as possible, and include points of growth and how you plan to grow your company, as investors are not looking for a complacent business to invest in. Get started with an online tool like Business Model Fiddle. The free business model canvas allows users to create and share business models with anyone, from the company team to investors. And the minimalistic tool is compatible on both iOS and Android devices, so you can work how you want, whenever you want.

Dress the Part

We might not all admit it at first, but we all make quick snap judgments about other people’s outward appearance. A study conducted by researches in Turkey and the U.K. of 300 participants found that the clothing we wear influences the type of impressions we make. The study allowed participants to look at a photo for just three seconds of a man wearing a well-tailored suit and then of a man in a not-so-well-kept suit. Of course, people judged the man in the well-tailored suit more favorably, citing that he must be more confident, flexible, successful and a higher-earner than the man in the other photo.

So, what can you learn from this study to impress a potential investor? What you wear matters. And to win over your investors you must look the part. Dress in tailored clothing and add a statement accessory to your look, like an Apple smartwatch for men or a designer Coach crossbody bag for women. Both accessories show that you take pride in your investors and they might just help you win their support.

Know Your Numbers

Not only are investors looking at your business because they believe in your vision, they are investing in your business to make money. Knowing your numbers might just be the most important factor in winning support from eager investors. However, having promising margins alone is not enough. To really win their attention, presenting your numbers in a visually pleasing and also professional manner is the best way to impress investors.

Put the Team First

Lots of ideas look good on paper. However, without the right people, that great idea can quickly fall flat. There’s no better way to show that your business rivals its competitors than having the right team in place to get the work done. Investors often look at the team behind the investment opportunity. And it helps if your team is both knowledgeable and passionate about the work that they do. Hiring the right people and developing them as your company grows will show investors that your team is the best in the business.

If you would like more information about selling a business, buying a business, buying a franchise or a related service such as valuing a business, please visit my webpage Services and choose from the drop down menu.

For more immediate help, you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post How to Impress Your Potential Investors appeared first on Rogerson Business Services by Andrew Rogerson.

S Corp and LLC tax and liability risks

Business owners do not enjoy paying taxes. Okay, no one enjoys paying taxes.

The Rules for operating a business today are complex and hazardous. NOT COMPLYING with them can cost you thousands.

You may have formed an LLC or a corporation with the understanding that your business structure would save you money in taxes and protect you from lawsuits or creditors. However, your business structure WILL NOT PROTECT YOU, if you are not in compliance with the State law regulating the type of entity structure that you have chosen. The courts consistently rule that if you are not acting like a corporation or LLC, then you are NOT one.

S Corp and LLC tax and liability risks

Compliance is an area that you can almost guarantee that business owners with an S Corp or LLC are not doing correctly, since only about two percent of small corporations are in compliance.

On a daily basis, you are probably violating some regulation without knowing it. Not following federal and state regulations can be costly. For example, if you are not in compliance with State law:

It may cost you thousands of dollars in self-employment tax if the IRS reclassifies your corporation or LLC as a partnership or sole proprietorship.
Your tax-favored fringe benefits may be lost, costing you even more money.
Your corporation or LLC may lose its legal standing in the State barring you from defending itself or bringing suit for damages against another.
Your corporate or LLC contracts may be deemed invalid allowing others to get out of their obligations to your company.
You could lose the asset protection afforded a corporation or LLC, thereby subjecting your home and personal assets to liens and seizures.
You may be subject to disciplinary actions from regulators for not following the Rules and/or incur penalties for not filing required documents in a timely manner.

Manage your S Corp and LLC tax and liability risks

The good news is that to help manage your corporation or LLC and be in compliance, the team at Incompass Tax, Estate & Business Solutions, Sacramento, CA have put together their Biz Tax & Compliance Coaching Program.

The benefits to you are that this program takes you out of the burden of staying up to date on the ever changing rules and regulations so you can focus on what you do best; successfully running your business.

Plus the good news is that this program saves you money on taxes.

Benefits of the Biz Tax & Compliance Coaching Program

Time is our most precious asset be it in our business or spending it with family and/or friends.  Here are some of the areas their program covers by saving you time so you don’t have to waste it staying on top of the constant changes to tax and regulatory filings.

On-going tax planning throughout the year
Correct documentation to protect tax benefits against an IRS challenge
Structures and Agreements required to maximize tax-favored fringe benefits
Risk Management to properly protect your business and personal assets
Business development, marketing and networking for success
Avoiding costly penalties with contractors and misclassified employees
The dos, the don’ts and the benefits when hiring family members
Employees, labor law, HR issues; how to protect yourself from liability
Keeping your corporate Record Book current and how it affects everything else
Filing the Statement of Information with the Secretary of State each year
Annual Meetings, Special Meetings and Resolutions for corporations or LLCs
Monthly contact to discuss scores of actions needing a Resolution or recording
Serving as your entity’s Agent for Service of Process, if applicable
Your Corporate or LLC docs are digitally backed up and stored for your protection
Unlimited access (almost) by email for your business questions
Live classroom and interaction with business specialists, when applicable
E-Newsletters for timely articles, information, alerts, updates and more….

Incompass Tax, Estate & Business Solutions, Sacramento, CA offers the above service on a monthly basis at $50 per month. That is, a simple monthly fee covers the above benefits plus you can email follow up questions to make sure everything is heading in the right direction or if you need additional information.

In addition to the above, you will receive periodic educational e-mailings. Each one will focus on one major idea for your business and provide in-depth analysis of that topic.

And here’s the good news. The monthly subscription is tax deductible. That is, not only will this program save you on the amount of tax you will have to pay, the cost of the program monthly subscription fee is tax deductible.

There are different requirements to start the program, depending on the status of your corporation or LLC. Non-corporate businesses can begin immediately. Availability to corporations can begin only after annual compliance is brought current, such as, after Formation Meeting or after Annual Meeting.

If you have questions about how to bring your corporation or LLC into current compliance, give Randy, Mark or Warren a call at Incompass Tax, Estate & Business Solutions, Sacramento, CA on (916) 974-9393 or visit their website: www.April15th.com

If you would like more information about selling a business, buying a business, buying a franchise or a related service such as valuing a business, please visit my webpage Services and choose from the drop down menu the information you would like.

For more immediate help, you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

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