Accounting is called the language of business and that’s not bad, because it helps you communicate with financial people and business people. In a family law case, accounting knowledge helps you (or your attorney, CPA or financial expert) ask the right questions to protect your legal rights. Formulating the question so that you get to what you actually need to know is sometimes the hardest part of analyzing financial statements. This following is not for someone who is easily overwhelmed by financials. I will be the first to tell you that it is perfectly fine to get an expert to do this for you. But if you are curious and want to be involved in analyzing financials and deciding how to find the right experts, read on.
The following are FACTORS to consider in analyzing a financial statement or the value and profitability of a company. Continue reading “Financial Statements & Divorce: How to Value a Small Business and Protect Your Rights “
Deciding the location and operating conditions of a small business is an
important decision to make. Certain types of small businesses may be operated from home, including those who do work such as graphic designers and consultants, off-site services such as electrical and plumbing, and arts and crafts businesses. Running a business out of the home is cheaper than leasing office space, and home business tax deductions that cover home expenses such as rent, property taxes, utilities, and insurance are generally available. However, small business owners must ensure that they are not violating any local zoning laws by operating a business out of their home.
When operating a business from home is not an option, small business owners typically consider leasing office space. Although the commercial real estate market in most of the country remains a tenant’s market in the wake of the recession, the Denver metropolitan region is a different story, as office space vacancy has decreased for six consecutive years and leasing rates continue to increase (averaging $23.81 per square foot for full-service office leases in Denver mid-2015). Continue reading “Small Business Tips: Factors to Consider When Leasing Office Space”
Creating a Limited Liability Company (LLC) is an appealing option when starting a business of any size. True to its namesake, an LLC provides its members limited liability in several areas.
First, an LLC protects its members’ personal assets from being used to satisfy the business’ debts. This makes LLCs an attractive investment option as well, as investors are not personally liable for the business’ debts either. Next, LLC members are typically sheltered from litigation if the business is sued. Further, more tax deductions are available to LLCs than to any other business structure, including deductions for health insurance, pension plans, and travel, automobile, entertainment, and medical expenses. Lastly, in contrast to corporations, an LLC avoids double taxation because an LLC’s income is included in the personal income tax returns of its members (unless an LLC elects to be taxed as a corporation). Continue reading “Small Business Tips: How to Start an LLC in Colorado”
When you own growing small business, you’ll likely hit the point where you need to hire help. Then the question becomes whether to hire an independent contractor or an employee.
When deciding between the two options, there are several factors to consider.
Even though Colorado is an employment “at will” state (meaning that either the employer or the employee may terminate the employment arrangement without notice or cause, absent a contract or other binding agreement to the contrary), hiring an employee burdens a small business owner with a greater level of commitment to the individual, more managerial responsibilities, and higher administrative expenses than paying for a contractor’s services. For example, while the legal obligations vary depending on the employee’s status and title, hours worked, and the nature of their work, you will generally have to provide various benefits to the employees hired, such as health insurance, retirement contribution, vacation time, paid time off, workers’ compensation insurance, and unemployment insurance. Further, hiring employees requires you to withhold state and federal taxes, social security, and Medicare from their employee’s paychecks, in addition to keeping detailed payroll records. A small business owner is also obligated to provide employees with proper training and any professional licensing that may be required. Continue reading “Should a Small Business Owner Hire an Independent Contractor or Employee?”