Q. Once I start making money in my business, what should I do with the profits? How much do I put back into the business versus putting it into savings? Cash Flow Management Considerations The potential uses of business profits and cash flow are owner compensation, overhead expenses, accounts receivable collection cycle, product inventory purchases,…

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Updated 4/4/17 Question: “It’s graduation season and I’m looking at making some substantial gifts. Do I need to be worried about how this will impact my taxes?” Bona fide gifts are not includible in the gross income of the recipient, or donee, of the gift regardless of the amount of the gift. However, there is…

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Question: “I’m planning to set up an LLC eventually. Could I use a DBA other than my name if I haven’t reserved/trademarked the name yet?” Answer: Business Name Registration Yes, sole proprietors can use fictitious business names (assumed, Doing Business As (DBA), trade name, etc.) for their businesses without registering a business entity (LLC, corporation,…

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Funding_A_New_Small_Business

Question: What is the best way to go about getting a loan from the SBA? Contrary to popular belief, the Federal Small Business Administration or SBA does not provide loans but merely provides loan guarantees on funding offers made by its lending partners (Banks, Community Development Organizations, Microlending Institutions and other lenders). There are several…

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Q. Can an LLC pay one of its members a salary? Is that what guaranteed payments are? Single and multi-member or owner LLCs taxed as corporations (C or S types) are generally required to pay their members who hold executive officer positions and manage the day-to-day business of the LLC, or otherwise work in their…

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Question: “Some of my clients have not paid me. Can I deduct my business bad debts?” Bad debt deductions depend upon the accounting method you use (cash or accrual) and other factors; however, a business can generally only deduct a business bad debt for unpaid invoices to the extent that the amounts invoiced were previously…

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Driving_Traffic_Through_Cross_Marketing

Question: I’d like to negotiate a deal with other auto repair shops to help drive business. I am a test-only smog station. Do you have any suggestions? Networking and cross-marketing with complementary (transmission, air conditioning, body shops, towing services, etc.) auto repair businesses and other parties in the industry can be very helpful in reaching…

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Registering_a_Logo

Question: What is the best way to register a company logo? Generally, trademark protection is available for logos, business names, slogans, and some design elements. When a name, logo or design is being used primarily to distinguish your goods or services from the goods or services of competitors, in other words, its function is to…

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