Purchase a Business With Your 401K!

By: David Gorman (bio)
Senior Business Broker, Sunbelt Indiana

Why? Because there are NO penalties, that’s right. This 401k Rollover program lets you use your 401k and other retirement funds to invest in a business – TAX AND PENALTY FREE. This is a safe, proven plan based on long standing provisions of the Internal Revenue Service (IRC § 6501). By using pre-tax retirement dollars to fund your business, you gain equity in your business and improve cash flow from day one. Use the funds to receive a salary during startup, while accelerating profitability by eliminating or reducing interest or debt. Application, creation, and funding is fast; typically (2-3 weeks or less). You can even set aside tax deductible retirement savings up to $200,000/yr.

The benefits of using your 401k:
-Minimize debt
-Enhance cash flow
-Stimulate business growth
-Build equity
-Take full advantage of tax benefits

SOLD A BUSINESS!

Congrats to our Business Broker, Larry Battershell,
on the sale of the Danville Pizza King...

Capital Gains Tax Rate change, what it can mean for businesses selling this year...

New Stimulus Package for Businesses...
By: John Kielich, Managing Director, Kolb + Co.
LeAnne Foster, Business Analyst, Kolb + Co.

No, you did not miss an eight million dollar first-time-business-buyer tax incentive or a sales tax break. However, there currently is a window of opportunity for businesses in regard to Federal Capital Gains Tax. The current Federal Capital Gains Tax rate of 15 percent is due to sunset at the end of 2010. How high it goes starting in 2011 is anyone's guess at this time, but as discussed and illustrated below, even an increase to 25 percent should provide a business owner the needed stimulus to strongly consider a sale or partial sale in 2010.

To read the rest of this article, and see an example spelled out in dollars... click here.

Personal Goodwill: Who Owns It?

Personal Goodwill has always been a fascinating subject, impacting the sale of many small to medium-sized businesses – and possibly even larger companies. How is personal goodwill developed? An individual starts a business and, during the process, builds one or more of the following:
• A positive personal reputation
• A personal relationship with many of the largest customers and/or suppliers
• Company products, publications, etc., as the sole author, designer, or inventor

The creation of personal goodwill occurs far beyond just customers and suppliers. Over the years, personal goodwill has been established through relationships with tax advisors, doctors, dentists, attorneys, and other personal service providers. While these relationships are wonderful benefits, they are, unfortunately, non-transferable. There is an old saying: In businesses built around personal goodwill, the goodwill goes home at night.

It can be difficult to sell a business, regardless of size, where personal goodwill plays an integral role in the business’ success. The larger the business, the less likely that one person holds the key to its profitability. In small to medium-sized businesses, personal goodwill can be a crucial ingredient...

to read the full article... click here.