Here’s One Way To Do It

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TaxFraudUnder-reporting your business income. It is a strategy employed by many business owners to reduce their tax burden. You’ve probably heard one of our Apex Business Advisors talk about how this strategy will also negatively impact the value of your business.  But, a recently indicted Business Owner took this strategy to an extreme (allegedly).

It’s hard to tell how much his business would have been worth had he played it straight. Besides using cash from the business (allegedly) to buy all those goodies, he also claimed he made under $20,000 which qualified him for Earned Income Tax Credits. Your tax dollars at work! Maybe he can beat the charges, but it looks a little suspicious.

An alternative:

Imagine a car wash owner who actually reports all the income on their tax return! This might be a rare event, but when it comes times to sell, the business will be worth substantially more than if the owner had cheated. Apex Business Advisors is in the process of proving this out.

We were able to quickly secure full-price offers on several car washes because the business owners had handled their financial situation in a straight and legal manner. Even better, the buyers of each of the car washes were able to get bank loans for the acquisitions because the complete, historical financial records of the businesses were clean.

Contact your Apex Business Advisor to review your business to determine current market value.

Have Biz, Must Sell

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nestegg“Nearly half of the 799 small-business owners surveyed in August by The Wall Street Journal and Vistage International, an executive-mentoring organization, expect to retire after age 65, with 38% saying that their planned retirement date is later than they had predicted five years ago. In addition, 56% said most of their retirement nest egg is tied to their business.

If you found yourself at retirement age with only one, privately owned, non-public, illiquid stock in your portfolio, how would you feel? Did your stomach just turn into knots? Well, if you are owner of a small business, you may easily find yourself in this scenario. To counter the risks here, you need to make sure you are in a position to sell quickly, at a high price, and on your terms.

How might this be done? Call your Apex Business Advisor to find out how to secure your future.