[Hidden-tech] Buying a Business to Avoid Profit Tax

[Rob Laporte]

Hi Rich,

Thanks for the helpful info. I did invest in cultivating new talent via paid training and some billable this summer and, currently, with a friend’s brilliant son at Hampshire College, hoping at least one of them will join DISC upon graduation. Without the equivalent of law schools and the bar exam in search marketing, finding and cultivating the next generation is a worthy expense. And you just bumped up on my list considering buying in late 2017 an annual subscription to some of the search marketing SAAS’s that I usually rent month to month as needed. Of course improving software and processes is ongoing, but bumping that up makes sense too.

My quick look through your daughter’s www.amherstarchery.com <https://www.amherstarchery.com/> reveals a great looking, highly usable site. I hope that business is prospering. 

I’d be happy to discuss any of the above at your convenience. Perhaps email me a good time for you.

Best Regards,

Rob Laporte
Founder & Managing Partner
DISC, Inc. - "Making Web Sites Make Money"
413-584-6500
Rob at 2disc.com
www.linkedin.com/in/2disc
www.2disc.com

NOTE: Emails can be blocked by spam filters throughout the web. If you don’t get a reply within an expected span of time, please call.




> On Sep 22, 2017, at 12:33 PM, Rich Roth - Webmaster <webmaster at hidden-tech.net> wrote:
> 
> Rob,
> 
> Yes, but -- Tax deductible expenses only include capital expenses to a certain degree -- check the rules
> for section 179 deductions.
> 
> Buying a business usually means a capital expense -- that is because you are mainly buying client revenue and name value. 
> you might be acquiring operating expenses for the year, although what expenses does a small business have ?
> You might be buying inventory -- so that would be key to making it worth deduction.
> An example of this is my daughter and husbands business: 
>     https://www.amherstarchery.com/ <https://www.amherstarchery.com/>
> While mainly a school, they also sell archery equipment they re-sell or make.
> Yeah, it's a challenge I've seen before, the best solution I've found is to bunch expenses on alternate years.
> 
> Another idea more in your field is to expand by taking on projects that would cost, esp, staff expenses, 
> that would than create more revenue or sell-able products or online services, esp SAAS, 
> such as SEO related Wordpress plugins that need your service to operate.
> 
> Would be interested in discussing such ideas.
> And for reference, not an account, just 30 years of running small businesses.
> Rich
> On 9/22/2017 11:48 AM, Rob Laporte wrote:
>> Hi HTers,
>> 
>> I hope many of you have faced the situation that a sole proprietorship or S-Corp (and LLC too?) means that annual profits are taxed at high personal income tax rates. Buying whatever one needs at the end of the year is often a way to reduce that tax hit, but often a business doesn’t really need to buy much. Buying a whole business, preferably related to one’s own business, would work too, as far as my low knowledge of tax law goes. 
>> 
>> For search marketing and conversion rate optimization (CRO) firms like mine, any online business that does not require a huge new skill set would be a candidate for acquisition. Most smaller businesses don’t do or can’t afford to do search marketing and CRO well, creating big opportunities for search marketing and CRO firms to realize that potential. Of course all kinds of businesses do such acquisitions, especially big businesses that get financing so cheap these days thanks ultimately to Fed money printing. 
>> 
>> So, this email has two threads. (1) anyone had experience with this issue they’d care to share? (2) do you know anyone who might want to sell for cash a small business that sells mostly online? 
>> 
>> Best Regards,
>> 
>> Rob Laporte
>> Founder & Managing Partner
>> DISC, Inc. - "Making Web Sites Make Money"
>> 413-584-6500
>> Rob at 2disc.com <mailto:Rob at 2disc.com>
>> www.linkedin.com/in/2disc <http://www.linkedin.com/in/2disc>
>> www.2disc.com <http://www.2disc.com/>
>> 
>> NOTE: Emails can be blocked by spam filters throughout the web. If you don’t get a reply within an expected span of time, please call.
>> 
>> 
>> 
>> 
>> 
>> 
>> _______________________________________________
>> Hidden-discuss mailing list - home page: http://www.hidden-tech.net <http://www.hidden-tech.net/>
>> Hidden-discuss at lists.hidden-tech.net <mailto:Hidden-discuss at lists.hidden-tech.net>
>> 
>> You are receiving this because you are on the Hidden-Tech Discussion list.
>> If you would like to change your list preferences, Go to the Members   
>> page on the Hidden Tech Web site.
>> http://www.hidden-tech.net/members <http://www.hidden-tech.net/members>
> -- 
> Rich Roth
> Hidden-Tech
> webmaster/board member 
> http://www.hidden-tech.net <http://www.hidden-tech.net/>
> Sponsor: http://www.thrivesmedia.com <http://www.thrivesmedia.com/>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://lists.hidden-tech.net/pipermail/hidden-discuss/attachments/20170922/26f86623/attachment-0001.html