Are You Planning On Starting A Business?

Are You Planning On Starting A Business?

by Jason M. Goloboy, CPA

Have you decided how your business should be formed?Has your professional advisor discussed the ramifications with you of being the only owner?You can operate as a sole proprietor which does not provide you any liability protection, or as a corporation (the differences between a “C” or an “S” corporation should be addressed).If there will be more than one owner, then you can utilize the following as a guide to your entity choice.You should note differences between flow-through types of entities (only one level of taxation), and the “C” corporation (which incurs and pays its own tax). More…

Ask Dr. Tom: Family Members:Can They Be Active in the Business…But Not Contribute?

Ask Dr. Tom:
Family Members:Can They Be Active
in the Business…But Not Contribute

Question:How would you suggest a family business deal with a member of the family who wants to become active in management, but who does not have the talent to contribute effectively to the business?

Answer:Genus has always maintained the view that all business decisions in family firms should be measured against the following criterion:What is in the best long term interest of the business?Clearly, placing unqualified members in management is not good for the business.But family business success often comes at the price of substantial risks and enormous sacrifices (made willingly and unwillingly) by family members.Because of these sacrifices, families in business ought to feel that they have earned some degree of latitude when addressing the issue of employing an interested family member even though it is unclear how he or she might contribute to the family enterprise. More…