Go It Alone with a 401(k) Plan
If your Maine-based small business is essentially a one-person operation, there's an option to help you save more money for retirement: The Solo 401(k) plan. Ordinarily, traditional defined contribution retirement plans allow annual contributions that are limited to...
Why Have a Business Valued?
It is a good idea to know the reasons for a valuation to be able to take advantage of situations when it may be beneficial. Some reasons for obtaining a valuation are a necessity, such as for determining the value of the business interest in an estate. Other reasons...
Tax Benefits of Being a Good Corporate Citizen
Slow-moving inventory is easy enough to discount or liquidate, but there's another option that can give your Maine-based business more of a benefit: donate that stock or computer equipment to charity. In general, when you donate inventory or property used in your...
Reducing a BIG Tax on S Corporations
If you are thinking about converting your C-corporation into an S-corporation, you must plan ahead to avoid owing a substantial tax on gains recognized for 10 years following the conversion. The built-in gains (BIG) tax rate is the highest corporate tax rate,...
IRA-Based Business Strategy Runs Afoul of Tax Regulations
A recent report from the New York Times makes it clear that aspiring business owners commonly use their retirement accounts to get their new ventures off the ground. But, as a recent tax court case illustrates, what may seem like a smart investment strategy can go...
Converting an Unincorporated Business Into an S Corp
In a previous article, we discussed the benefits of S-corporations for your Maine-based small business. Here we’ll delve further into the idea of S corporation conversion, as the federal self-employment (SE) tax doesn’t apply to earnings from an S corporation...
Court Decisions Make it Easier to Deduct LLC Losses
What happens if you're the owner of a limited liability company (LLC) that generates tax losses, and you don't spend a lot of time in the activities of the business? The losses might be classified as passive, and your ability to currently deduct them might be severely...
Maximize Write-Offs for Business Interest Expense
When you take out personal loans to buy a Maine-based small business, you want to maximize the tax write-offs for the resulting interest expense. The tax law in this area can seem complicated. But if you do some research ahead of time and talk with Filler &...
Consider a SIMPLE IRA as a Retirement Plan Option
Have you procrastinated in setting up a tax-advantaged retirement plan for your Maine-based small business? If so, you are paying income taxes that could easily be avoided and putting your retirement financial situation at risk. You can set things right by taking...
The Importance of Keeping Non-Compete Agreements Specific
When using non-compete clauses in employment contracts, company managers should be mindful that such provisions are better able to withstand legal challenges if they are narrowly tailored. As an attorney, your business clients should consult with you before using...