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"Press on. Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent."
~ Attributed to Calvin Coolidge (1878 - 1933), 30th President of
the United States
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Selling Your Business this Year --
What's the Government's Take?
 If you decide to sell your business, or part of it, at a profit, there are going to be tax consequences. The challenge is to determine the total tax cost on the profit you expect to reap. New law changes impact what you'll net from the sale, and can influence how you structure the deal.
Capital gains rates
If you are in the 39.6% tax bracket in 2013, 20% of your profits will be taxed as capital gains. You're in this top tax bracket if your taxable income exceeds: - $400,000 if single
- $425,000 if head of household
- $450,000 if married filing jointly or a surviving spouse
- $225,000 if married filing separately
Depending upon the situation, you may want to structure the sale as an installment sale so that you'll receive payments over time. This may enable you to pay less taxes overall.
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Desperate for Cash? What to Do
and Not Do
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It could happen to you: Sales fall off, customers don't pay on time, and your expenses rise. All of these factors combine to create a serious and sudden cash crunch. What strategies should you employ to work your way out of trouble and avoid creating more problems in the process? PrioritizeWith limited funds, you can't pay everyone everything that's owed. Be sure to set priorities to minimize additional problems and, to the extent possible, preserve your credit rating:
- Pay the government first. This includes "trust fund" money arising from employees' withholding and FICA payments as well as sales taxes. If you know you owe this money to the government but choose to pay other creditors instead, you can become 100% personally liable for the outstanding amount.
- Employees' wages. Not only is this morally right, but the failure to meet payroll can result in stiff state-level penalties. If delinquency runs for a certain period (e.g., a few weeks in some states), the state can shut down your business. What's more, you remain liable for the wages; they can't be avoided by bankruptcy.
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The New Race to the Patent Office
| If you have a new invention or process that you want to protect, be sure to understand the steps you must now take to secure patent protection.
Overview
Small businesses are highly creative and, according to the SBA, small businesses produced 16 times more patents per employee than large patenting firms. But a new law that took effect on March 16, 2013, impacts the way in which small businesses can protect their creations.
What's the same?
In order to gain patent protection, an intellectual property right granted by the federal government, you must file for it in the U.S. Patent and Trademark Office.
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Our Readers Ask
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Q: I am a freelancer with no medical plan. If I use a health savings account, will this satisfy the individual mandate for health coverage in 2014?
A: Yes. In order to save money in a health savings account (HSA), you must have a high-deductible health plan. Presumably, private insurance plans for 2014 and beyond will meet minimum coverage requirements set by the Affordable Care Act. The definition of a high-deductible health plan (HDHP) for 2014 is a health plan with an annual deductible of not less than $1,250 for self-only coverage ($2,500 for family coverage) and a cap on out-of-pocket expenses (for deductibles, co-payments, and other amounts other than premiums) of $6,350 for self-only coverage ($12,700 for family coverage). Find more general information on HSAs in IRS Publication 969. The 2014 dollar limits on contributions can be found in IRS Rev. Proc. 2013-25. You may also want to explore coverage offered through government-run exchanges. Details are not yet available, but continue checking through the Department of Health and Human Services.
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Book Reviews
Motivation
Brian Tracy ~ AMACOM ~ Hardcover: $9.95
 If you've been in business for any length of time, you've undoubtedly read one or more of Brian Tracy's books on success, sales, management, and other vital topics. Now, in a pocket-size book, you and your staff can get and stay motivated. Tracy's latest book is all about motivating your people to achieve peak performance and productivity. The book tells you how to clearly communicate your expectations and to master the three Rs: rewards, recognition, and reinforcement. It also explains how you can become a mentor, teacher, and leader. A great addition for your business library! Do It! Marketing David Newman ~ AMACOM ~ Hardcover: $19.95  This book is designed for the small business owner or solopreneur to take the actions necessary for marketing successfully. The premise of the book: "Only action creates results." The book is written in an action-oriented format, complete with 77 specific ideas ready to put to work. For example, it explains how to build a referral blurb so you get results. The author is a marketing expert who's worked with Fortune 500 companies. This advice translates very well for small businesses.
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It's a Fact!
One-third of American Workers are Freelancers Currently, 42.6 million people are freelancers. With the health care employer mandate under the Affordable Care Act poised to take effect on January 1, 2014, the ranks of freelancers may soon grow.
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Build Your Business Radio and
Business Leader Radio
While the Build Your Business Radio broadcasts are on hiatus you can find all podcasts here.Plus ... You'll find new, live broadcasts on
Business Leader Radio each month!
I'll be interviewing more great guests every 3rd Tuesday at
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Mobile Site Launch!
Don't forget ...
you can
now get your Idea of the Day® and all the latest news and information from Big Ideas for Small Business® on your mobile devices.
Don't miss out -- get your
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