9 Questions Every Business Owner Should Ask Themselves Yearly

Below are a few questions every business owner and shareholder should consider on a regular basis. Moskowitz LLP Business Services is ready and able to consult with you on these questions and help you ensure that you are maximizing all the benefits of your business entity(ies).

1. Are your employee and self compensation plans in compliance with federal, state and local law?

2. Are you required to have a pension plan in place by State Law?

3. Have I discussed Passthrough Tax Entity Elective Tax Status thus lowering my federal tax liability with my tax preparer?

4. If you become disabled or die unexpectedly, do you know who will run your business?

5. Does your Buy-Sell Agreement provide for:

  • Death
  • Disagreement
  • Loss of License
  • Retirement
  • Disability
  • Bankruptcy
  • Failure to perform duties
  • Business valuation methods

6. Is Your Buy-Sell agreement adequately funded?

To be of any value, your Buy-Sell Agreement must be funded. The most common funding methods are:

  • Installment sale based on the current earnings of the business
  • Capital from the business is invested for future purchase (sinking fund)
  • Loan at the date of purchase
  • Life insurance

7. Have you minimized the impact of taxes on your business? How do you know? Do you have Moskowitz LLP’s tax planning report to reference?

8. Is your estate plan integrated with your business plan?

Your estate plan and business plan must be carefully designed and integrated for your plan to work. It must work while you are alive and well, upon disability, upon death, to the next generation and beyond.

9. Are your formalities up to date?

  • Statement of Information
  • Title to Assets and Policies
  • Meetings, Minutes, Resolutions
  • Accountability Plans
  • Tax Returns, Tax Accounting, and Backup documentation
  • Capitalization, Basis, and Executive Compensation

Moskowitz LLP is a tax law and accounting firm that has dedicated over 30 years to representing individuals and businesses with civil and criminal tax problems, cleaning up accounting and tax messes, and providing tax and accounting advisory services. We offer practical and affordable tax and accounting solutions, business services, estate planning, and administration. Contact us today to schedule a consultation.