Most small business owners have only a vague idea of what their businesses would really be worth if they wanted to sell. And most of the ones who think they know what the business is worth are probably wrong.  Professional appraisers who regularly conduct business valuations say that owners err on both ends of the spectrum. Some fail to include intangible assets in their estimate and tend to undervalue what they’ve built over time. Others think their businesses are worth much more than the market would dictate.

Business owners often bring in an appraiser to prepare for a purchase, a merger or an employee stock ownership plan. Or a valuation might be needed for estate and gift tax returns, buy-sell agreements, litigation, tax challenges, divorce or many other purposes.

But even if there’s nothing on the immediate horizon, every business owner should have a current valuation in his or her desk drawer as a tool for helping make informed decisions about the company’s direction. An objective and independent valuation gives you a much clearer picture of where you’re going. Here are four more reasons to perform a business valuation and where you can find help: Read the full entry

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Although the much-talked about economic recovery is still largely invisible to most small business owners, now is a good time to position yourself to take advantage of special tax benefits as activity starts to improve. “Although tax rates may trend upward in the next few years, most businesses can offset a big portion of those increases with proper planning now,” says Steve Henley, national tax practice leader at the accounting firm CBIZ MHM, LLC.  Here are some things to do: Read the full entry

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. This is the last in our series.

Small Business Tax Tip #10: Don’t Expect More Tax Relief. “Read my lips,” says Chris Province, CPA and partner in the firm Armanino McKenna, in San Ramon, CA, “Don’t look for relief on taxes anytime soon from Washington, or state governments.”  Tax rates will be going up, according to Province, who recommends that  small business owners consider what they can do to minimize taxes now and in future years when tax rates go up.

For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for the next 10 business days.

Business Owner Tax Tip #9: Don’t procrastinate, counsels Larry McKoy, Senior Tax Partner, Goodman & Company, Richmond, VA.  ”Many companies are probably more worried about the economy than about their taxes right now, but that could be a mistake. As bad as the economy is, you need to know your options before it’s time to pay your taxes. Even if you had a bad year, you may owe taxes (surprise!) or you could get significant refunds of much-needed cash from net operating losses. So don’t avoid your accountant.”

Check back tomorrow for the next expert Tax Tip in our series.  For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for the next 10 business days.

Business Owner Tax Tip #8: “Take a trip on your P&L to find hidden treasure” says Bruce Zicari, a CPA in the small business advisory practice at Pittsford, NY-based Bonadio Group.  “There’s a line on your P&L statement that has a ‘hidden’ deduction opportunity that could generate a big tax advantage and put cash back into your pocket. Basically, it’s a way to move certain capitalized items that are currently being written off through depreciation and reclassify them as a repair. Instead of taking small amounts of depreciation yearly, you get to write off the whole item this year. But Zicari says the clock is ticking on the opportunity to expense these previously capitalized items. “The maneuver is well worth taking, and you should be starting your journey now, as the IRS will most likely be closing the road in the near future.”

Check back tomorrow for the next expert Tax Tip in our series.  For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for the next 10 business days.

Small Business Tax Tip #7: Expect more extensions, says Kimberly Lawrence, with Joseph Decosimo & Co. in Chattanooga, TN.  “As 1099 reporting is allowed to move closer and closer to a tax deadlines, more small business owners can expect their business and individual returns to be extended. We educate our clients about the possibility of extending their returns due to the increased compression period in receiving this information so close to tax deadlines. We also assure them that there is no increased risk of their return being selected for examination by extending.”

Check back tomorrow for the next expert Tax Tip in our series.  For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for 10 business days.

Small Business Tax Tip #6: Bank on a C-corporation Comeback:  According to John Smolke, CPA with Seattle-based Peterson Sullivan, “The prospect of increased future tax rates means business owners should consider the most appropriate form of business operation. C-corporations may make a comeback if individual tax rates are increased to 39.6 percent; if a surtax of 5.4 percent is imposed on high AGI taxpayers; or if additional Medicare taxes are imposed on high-income taxpayers. Paying taxes at C-corp rates may make the most sense, especially during the years when the business needs to build up its equity.”

Check back tomorrow for the next expert Tax Tip in our series.  For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for 10 business days.

Business Owner Tax Tip #5: Take advantage of depressed asset values, recommends Vincent Paolucci, a tax partner with Grassi & Co. in Jericho, NY. “In light of the current economy, which has driven down market values of businesses, entrepreneurs should consider transferring stock in their companies to family members as part of their total estate plan.”

Check back tomorrow for the next expert Tax Tip in our series.  For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for 10 business days.

Small Business Tax Tip #4: Beware of out-of-state surprises, offers Joel Rothenberg, CPA, a tax partner at Boston-based DiCicco Gulman and Co. “Small business owners should review their state filing requirements for income tax, personal property or sales and use tax. State tax authorities are being super aggressive in enforcing their laws and business owners must know the rules in their home state and also determine if their activities in other states trigger a filing requirement.”

Check back tomorrow for the next expert Tax Tip in our series.  For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for 10 business days.

Business Owner Tax Tip #3: Depreciation is your friend: Claude Titche III, a CPA with Beene, Garter in Grand Rapids, MI, offers this tip: “Be sure to maximize depreciation deductions available by using the Section 179 immediate deduction of fixed assets and the 50 percent bonus depreciation for purchasing new assets. Quicker depreciation expenses save tax dollars. Remember that you only get to deduct the cost once. A current deduction is better than a deferred deduction.”

Check back tomorrow for the next expert Tax Tip in our series.  For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.

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