No Current Deductions Before Business Commences
Starting up a small business in Maine and wondering about how tax deductions will be handled? It’s very important to remember that most expenses incurred before a business begins functioning cannot be deducted or amortized until the year when the business does become...
Lost Profits or Lost Value of the Business?
Let's say that Maine Delicious Lobster Company loses its contract to deliver lobster for its primary customer, Good Maine Sandwich Company. Furthermore, the contract loss was due to an alleged breach by Good Maine Sandwich Company. The lobster company sues the...
It May Be Time to Review 401(k) Fees
The regulatory and legal pressure on employers to tightly monitor their 401(k) plan costs has always been strong, but employers may soon find a little help. At the same time, however, small employers must be aware that the federal judiciary is still paying close...
Consider an Alternate Metric to Value Your Small Business
Traditional valuation models don't necessarily work for Maine small businesses and professional practices. Public market data may be less relevant for a small business that functions primarily as a job or steady source of income its owner(s). Instead, business...
A Checklist When Closing a Business
A small business owner may have several reasons for wanting to permanently close their business. In many cases it is simply because they are losing money. It could also be that the owners launched a company as friends and the relationship has soured over time. Or...
Expert’s Disregard of ASB Guidelines Imperils Valuation
Vega v. Fulcrum Energy, LLC, 2013 Tex. App. LEXIS 12323 (Oct. 3, 2013) After a partnership dispute arose, the dismissed stakeholder sued, claiming the defendants breached an agreement that required them to buy back his interest, and retained an expert to value the...
The Royalty Method: An Effective Alternative when Valuing Intellectual Property
Most Maine-based businesses today have valuable intellectual property. Valuing it can be difficult, as the most commonly applied valuation methods of market, income and cost, aren't always effective when valuing intellectual property. For this reason, professional...
Dated Valuation Not Per Se Unreliable Indicator of FMV
Sparks v. Sparks, 2013 Mo. App. LEXIS 1421 (Nov. 26, 2013) As the husband pursued a divorce, he thought it necessary to sell part of his animal hospital to comply with any upcoming equalization payment order and procured a valuation. The trial court stayed the sale...
Are You Owed Money from a Business that Filed for Bankruptcy?
Suppose you've been doing business with a company that owes your Maine-based business money or has been late in paying for services you have provided. You might have even filed a lawsuit to obtain the payments. But then you receive a notice that the company has filed...
When Nonqualified Stock Options Have a Leg Up
Incentive stock options offer tax advantages to employees, but they come with a tax price for your Maine-based company. The plan must meet numerous strict requirements spelled out in the law, and the company gets no deduction at any time. To receive preferential...