One of the most profitable sub-industries in the credit card industry is what is known as “Zombie” debt collection. Zombie debt is old and uncollected debt purchased for pennies on the dollar and then collect on debt for which they couldn’t otherwise sue. The Fair Debt Collection Practices Act provides only a minimal deterrent to [...]
Here is part II of our look at LLC’s and their use in business continuity and succession planning. III. Non-Tax Benefits of Forming an LLC. There a number of non-tax benefits that stem from formation of an LLC. Chief among these non-tax benefits are the following: . LLC members are shielded from personal liability. This [...]
Here is Part II of my answers to top ten questions I get asked by a clients or a colleagues. 6. I understand that if I organize my business as an LLC, I will not be able to provide my employees with options or some other form of equity participation. Is that correct? No. LLCs [...]
Limited Liability Companies present unique opportunities not available in partnerships and corporations for business continuity and succession planning here are some of the key advantages and distinctions.
As I have practiced over the years, I have heard some of the same questions over and over again from both colleagues and clients relating to business entities; that is, how do they differ and why when to use one type of entity over another. Here are some answers to top ten questions I get [...]
This is our sixth and final look at financial statements. In this article we discuss how to use financial statements in your business. Using financial analysis Attorneys and accountants rely heavily on financial reports when buying or selling a business, selling shares in their company, obtaining conventional and non-conventional financing, tax matters and on an [...]
Types of reports An independent Certified Public Accountant (CPA) can provide three levels of services related to the financial reporting of a business enterprise. These are a compilation, review, and an audit. A compilation provides the lowest level of assurance. A compilation engagement is the most common for small closely held businesses because it is [...]
This is the fourth of our six part series on financial statements for businesses. Here we look at analyzing financial statements and what they can tell us. Financial statement analysis An important part of any business analysis is a comparison of the financial performance of the subject company to benchmark data available in the marketplace. [...]
Here is the third of our six part series on financial statements. In this article we discuss probably the most important information, the cash flow. Cash-flow statement The statement of cash flows reports a company’s sources and uses of cash. These sources and uses are broken down into three distinct categories: Operating activities–cash from the [...]
This is the second of our six part series discussing financial statements. In this article we look at how liabilities are treated and the income statement. Liabilities The liabilities of an enterprise can best be described as the claims against the assets of the enterprise. As is the case with assets, liabilities are segregated between [...]