There’s lots written on how to start a business. Not so much about business shutdown. Even pre-pandemic, half of all new businesses fail within 5 years. Post pandemic, the pain is so much greater. So let’s walk through how to manage a business shutdown, tie up loose ends, and minimize problems that may follow you […]
When Is Individual Business Owner Liable for California Sales Tax
Even when corporate retailers collect California sales taxes from customers, the individuals running the entity face liability for that debt. That’s because, , if the business doesn’t pay, state law allows collection from the business owners themselves The rules are complicated and the results can be harsh if the business falls behind. So business people […]
Can You Rescue Your Business With Chapter 13
Small business owners who are sole proprietors can enlist the power of bankruptcy’s Chapter 13 to rescue their business at a price they can afford. Everyone thinks of Chapter 11 as the “keep the business and ditch the debt” form of bankruptcy. But traditional Chapter 11 is cumbersome and just flat out too expensive for […]
Closing Up Shop
What can you do when it becomes obvious that your business should close? The hardest part of being in business is recognizing when the business has no future and needs to close. Yet the overwhelming majority of new businesses fail within 5 years. So you’re not alone. In fact, in the face of the pandemic, […]
SBA Loans Collectible Long Past Business Failure
The SBA has eagle eyes and sharp talons when it comes to collecting from guarantors of business loans. SBA collection tools are ruthless, efficient, and ageless. So I learned when a client consulted me about a business that had failed 12 years ago. Yet the SBA had never sued him, nor had it filed a […]
Bail Yourself Out Of Payroll Tax Trouble
Business owners with unpaid payroll taxes are in deep trouble. Even if the employer is a corporation, the corporation’s managers are personally liable for the trust fund portion of unpaid payroll taxes. There’s no corporate shield when it comes to payroll taxes. You are in the IRS’s cross hairs, personally, if the business hands out “net” checks […]
How To Write A Contract Without A Lawyer & Make It Stick
Even in a world where people attempt almost any skilled task with the help of Google, YouTube, or Legal Zoom, people continue to ask: is this contract legal? They aren’t asking (usually) whether the subject matter of the contract is permitted by law. They really want to know: will what I’ve written be enforceable. What makes it […]
What’s Up After Tax Extension To File?
The tax extension in the mail and you don’t have to think about income taxes til October 15th approaches. Right? Not in my book, if you are self employed. The self employed don’t have their estimated income taxes withheld from their paychecks. There aren’t any paychecks if you are among that resolute band of entrepreneurs, […]
Time Running Out On Dynamite Business Reorganization Opportunity
In less than a month, the nifty new small business bankruptcy option that makes Chapter 11 feasible for the little guy reverts to its far smaller debt limits. Still great, but available to fewer troubled businesses. SBRA is a new subset of a Chapter 11 bankruptcy reorganization. Also called a Subchapter V case, it’s designed […]
