Posts by Bill Wortman


Consultant’s Corner: Home-Based Business Insurance

Question: Would our homeowner’s insurance cover the entire inventory of our home-based business, or do we need additional insurance? In our experience, it is unlikely that your existing homeowner’s insurance policy covers any of your business assets or liabilities, particularly significant amounts. You would have to speak with your homeowner’s insurance agent to determine if…

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Consultant’s Corner: Adding a Member to an LLC

I have a Single Member LLC. What are the issues and process to add a partner and how does it affect the closing out of the original Single Member LLC and setting up a new entity? It is common for members or owners of single member LLCs to take on partners by converting their LLCs…

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Consultant’s Corner: Creating an Internship Program

Question: I want to begin working with student interns, giving them course credit and real-world experience before entering the actual work place. Where should I start? Workers engaged as interns can be paid or unpaid, but our response assumes that your question refers to engaging workers as unpaid interns. In order to engage workers as…

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Consultant’s Corner: Preparing to Sell a Business

Q. I am looking at selling my business within the next 5 years. What should I take, and how do I value the business? Are there tax implications I should know about? While revenues and profits (historical and recent trend) and asset market values are the basic considerations for valuing a business, customer contracts, management…

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Consultant’s Corner: How Do Government Contracts Work?

Q. What does it take to win government contracts? Government Contracting Pros and Cons Government contracting can be a reliable and profitable revenue source for a business; however, there a various considerations with government contracting. For example, the paperwork and other administrative burden and extended payment terms are unattractive to many businesses. To help determine if…

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Consultant’s Corner: Taking Over an Existing Team

Q. I am about to become a new boss, supervising three people who are incumbent to the organization. I am the new player on the team. Any suggestions on best practices in embarking on this journey? While your most recent professional experience may be as a self-employed professional with no employees, you certainly have the…

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Consultant’s Corner: Why You Need an Employee Handbook

Question: I run a small business and have less than 10 employees. Why should I have an employee handbook? An effective employee handbook that lays out all company policies can be a great benefit to your small business. Although there’s no kind of legal requirement forcing you to develop a handbook, experts have found that…

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Consultant’s Corner: Protecting Your Business Methodology

Question: I’m a professional fundraiser for nonprofit organizations. My clients sign one-year contracts. How do I protect my ideas (e.g., fundraising strategies, event ideas, etc.) when a contract ends and the client implements my methodology themselves? Generally speaking, your fundraising contracts should include terms and clauses that explain the ownership and permitted use of any…

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Consultant’s Corner: Loans from Family Members

Q. What is the lowest annual interest rate allowed by the IRS on a loan from a family member? The tax rules governing below-market and related-party loans are complex, with a number of exceptions. To understand all of the tax implications, you should consult your tax adviser or CPA before you enter into or renegotiate…

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Consultant’s Corner: How Much Does It Cost to Replace an Employee?

Q. How do I calculate the cost of replacing an employee? Employee turnover is the attrition of employees through voluntary or involuntary terminations. Employee turnover results in costs (internal and outside services) to the employer, including those for employee separation/departure, lost productivity, recruiting and hiring replacement employees, orientation and training of new employees, etc. While…

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