Law Office of Joshua A. Lowenthal, PLC

07/03/2023

Many small business owners have no idea of their company's true value, which can be essential for securing funding, planning for taxes and estates, and conducting a sale. To ensure an accurate valuation, entrepreneurs should hire independent auditors to assess their company every few years.

Entrepreneurs are told a key to success is to 'know your numbers,' but when it comes to the valuation of their own businesses, that figure is often a mystery.

06/29/2023

Do yo know what form 8822-B is?

Form 8822-B is a federal tax form used by businesses to report a change in their responsible party to the Internal Revenue Service (IRS). The responsible party is the person who has primary control over the business and is typically the owner, top-level executive, or someone who manages the finances of the business.

This form is necessary if the business has changed its responsible party since it last filed its tax return or if the business has not previously provided information on the responsible party to the IRS.

It's important to keep the IRS informed of changes in the responsible party as it can help prevent identity theft or fraud.

06/26/2023

For small businesses, funding access can be crucial to their survival. This is particularly important given the high failure rates of US businesses, with 18.4% failing in the first year, 49.7% after five years, and 65.5% after ten years, according to data analyzed by LendingTree from the US Bureau of Labor Statistics. Inadequate funding is a leading cause of business failure, emphasizing the need for businesses to know where to seek financial support if necessary.

While the options can depend on factors such as size, industry, amount needed, time frame and purpose, here are eight possibilities to consider.

Access to funding is key to small business survival. There are many options from banks to online lenders and the SBA. Here is how to make the decision.

06/22/2023

Are you considering to start your own business? Make sure to take in consideration this 5 common legal mistakes small business owners make, so your business can grow without any problems:

-Failing to register their business.

-Not having written agreements with partners or vendors.

-Misclassifying employees as independent contractors.

-Not protecting their intellectual property.

-Not having proper insurance coverage.

06/19/2023

What is a lien?

A lien is a legal claim or right that a person or entity has to property belonging to another person, usually as security for a debt or obligation owed. It gives the holder of the lien a legal right to take possession of the property if the debt or obligation is not paid. In other words, a lien is a type of security interest in property that is used to help ensure that debts or financial obligations are fulfilled. There are several types of liens, including mechanics' liens, tax liens, and judgment liens.

In this article you can know more about what a lien is, the different types of liens and many things more.

A lien gives a lender the right to your property or assets if you fail to repay a loan. Learn how liens can help your business and how to get rid of them.

06/16/2023

Starting a business from scratch can be incredibly rewarding, allowing you to turn your passion into a reality while creating financial security for yourself and making a positive impact on the world. It also allows you complete control over every aspect of the company, providing opportunities for personal growth and development.

06/15/2023

Both LLPs (Limited Liability Partnerships) and LLCs (Limited Liability Companies) are popular types of business structures that provide liability protection for their owners. However, there are some key differences between the two:

1. Ownership: LLPs are typically used by professional service businesses, such as law firms, accounting firms, and architecture firms. Unlike LLCs, LLPs must be owned by at least two partners, and all partners are usually involved in the management of the business. Conversely, LLCs do not have the same restrictions on ownership and may be owned by a single person or multiple owners who are not necessarily involved in running the business.

2. Taxation: Both LLPs and LLCs are taxed as pass-through entities, meaning that the profits and losses of the business are passed through to the owners' personal tax returns. However, if an LLP has a general partner who is personally liable for the business, they may be subject to self-employment taxes on their share of the profits. Conversely, LLC owners are not typically subject to self-employment taxes.

3. Liability: Both business structures offer liability protection for their owners, meaning that owners are not personally liable for the debts or obligations of the business. However, in an LLP, each partner is also protected from any liability arising from the actions of other partners. In an LLC, owners are only responsible for the business to the extent of their investment in the company.

4. Regulatory requirements: LLPs are subject to more regulatory requirements than LLCs, as they are typically used by professional services firms and are often subject to specific industry regulations. For example, some states require LLPs to carry malpractice insurance. LLCs, on the other hand, generally have fewer regulatory requirements and may be easier to set up and operate.

Overall, both business structures have their advantages and disadvantages, and the best choice depends on the specific needs and goals of your business.

06/13/2023

For years, researchers have known that our physical and mental well-being improves when we freely give our time to help others. And when we do so through company-sponsored programs, performance-related outcomes like job satisfaction and commitment to work also get a boost.

Do you agree with the creation of volunteer programs? Let me know in the comments!

Management Volunteering Encourages Employees to Connect with Each Other — and Their Jobs Want your team to feel better and work better? Create a volunteer program. July 29, 2022 | by Alexander Gelfand Doing volunteer activities as a group can build social bonding. | iStock/SDI Productions For year...

06/13/2023

Not everybody has the entrepreneurial spirit or a desire to innovate and build businesses, but for those who do, that desire is strong and persistent.

After reading this, do you think you have an entrepreneurial spirit? Let me know in the comments.

Not everybody has the entrepreneurial spirit or a desire to innovate and build businesses.  But for those who do, that desire is strong and persistent.  Here’s how to tell if […] More

06/12/2023

The notion of starting a business is both exhilarating and intimidating. When considering whether or not to take the risk and try something new, there are numerous things to think about. One important aspect that shouldn't be ignored is following your instincts.

More than just relying on instinct or acting impulsively is required to truly trust your gut. When launching a business, you should put your faith in your judgment and instincts. Instead than reacting emotionally to every circumstance, it's important to have the ability to spot warning signals of trouble and respond accordingly. Even in difficult circumstances, making judgments with confidence may be aided by knowing when to trust your instincts.

You know what's right for you, so trust yourself!

06/08/2023

A C Corporation, or C-Corp, is a type of business organization that is considered a separate legal entity from its owners. This means that the corporation can own assets, enter into contracts, and conduct business on its own, without the personal liability of its shareholders.

One of the defining characteristics of a C-Corp is that it is taxed separately from its owners. The corporation pays taxes on its earnings at the corporate tax rate, and its shareholders also pay taxes on any dividends they receive at their individual tax rates.

C-Corps are often used by businesses that plan to raise capital by selling stock, as well as those that want to protect their owners from personal liability. They can also be advantageous for businesses that plan to reinvest profits back into the company, as the corporate tax rate may be lower than individual tax rates.

However, C-Corps also have more regulatory requirements than other business structures, such as S-Corps or LLCs, and may be subject to double taxation. As such, it's important to carefully consider whether a C-Corp is the right choice for your business.

06/05/2023

Finding the ideal product to offer may be challenging for business owners. It's undoubtedly the most crucial stage in creating a successful company, and picking the incorrect product might significantly lower your business's potential.

Here is an article to guide you on choosing the best product to sell on your business.

Trying to find the right product to sell? Follow these three steps.