Follow these steps when shutting down a business

Business owners may decide to shut down their operations for a variety of reasons. Some struggle for years before admitting that their particular market is drying up or the company's products lack sufficient customer appeal. Others manage strong businesses, but no longer feel motivated to continue pouring energy into the enterprise. Still others may find that partnerships have grown sour or personal crises have unavoidably encroached on their time and resources.
Regardless of the reason for shutting down a business, owners should follow a systematic dissolution strategy whenever possible. Such a plan should include the following steps:

• Vote to close the business. Of course, a sole proprietor may only need to consult with a spouse or trusted advisor. With a partnership, corporation, or limited liability company, more than one business associate must agree to the dissolution. Organizational documents or a state's business statutes often mandate the level of agreement required (a simple majority or two-third's majority, for example), so you'll want to consult applicable rules.

• File a final tax return. Even if the business only operated for a portion of the year, you'll need to notify the IRS that the company's annual tax return is its last one.

• Fill out dissolution paperwork. Let your state and local governments know that the company is ceasing operations. The forms you need should be posted on your secretary of state's website. Especially when a partnership or corporation is dissolved, formal filings should prevent future confusion about ownership and liabilities.

• Cancel licenses, permits, and insurance policies. Most businesses are required to obtain city, county, and/or state licenses to operate. Those governments should be notified of the dissolution. Insurance brokers as well should be told to cancel business liability, health care, and other company policies.

• Notify interested parties. At some point you'll want to inform lenders, suppliers, service providers, and customers. Lenders will be eager to find out how you plan to repay loans. Suppliers will want to know when to make final deliveries. Utility companies will need to know when to turn out the lights and shut off the water. Customers, too, should be given plenty of notice about final orders and ongoing projects.

• Get expert advice. Closing down a business can be a stressful and fragile process. Many things can go awry, so seeking help from competent professionals — attorneys, accountants, bankers, and others — can keep the process moving in the right direction.

aconner@atconnercpa.com

Understanding the basics of reverse mortgages

Because many retirees are house-rich and cash-poor, financial gurus have developed a method for tapping into some of that bottled-up wealth: the reverse mortgage. As the name suggests, a reverse mortgage generates payments from a lender to a homeowner — the opposite of a standard mortgage. By providing access to home equity, reverse mortgages enable cash-strapped seniors to retain their property, subsidize their income, make home improvements, even cover unexpected medical expenses. Furthermore, money received from a reverse mortgage isn't taxable and doesn't negatively affect a retiree's social security or Medicare benefits.

For several years the Federal Housing Administration (FHA) has offered a popular reverse mortgage called the Home Equity Conversion Mortgage or HECM. To qualify under that program, you must be at least 62 years of age and hold title to your home free and clear (or be able to pay off the mortgage balance with proceeds from the reverse mortgage). In addition, you must demonstrate the financial wherewithal to cover ongoing utility costs, maintenance, property taxes, and hazard insurance. You'll be required to live in the home as a primary residence (although some types of reverse mortgages allow you to live in a nursing home or other medical facility for up to 12 consecutive months before the loan must be repaid). As with other types of mortgages, lenders charge origination and closing fees. Ongoing costs such as mortgage insurance premiums and servicing fees may be part of the bargain as well.
Before you sign on the dotted line, consider the following:

• You're taking out a loan. A reverse mortgage is an obligation that must be repaid when the borrower moves out permanently, the house is sold, or the borrower dies.

• Read loan documents carefully. Payment amounts, interest rates (fixed or variable), loan length, line of credit availability, events that trigger foreclosure proceedings — all of these variables should be clearly delineated in the mortgage documents.

• Expect your total debt to increase. Interest on a reverse mortgage is generally charged against and added to the outstanding loan balance on a monthly basis.

Although a reverse mortgage may provide a welcome source of cash, such a commitment shouldn't be undertaken lightly. Shop around, and beware of pushy sales people who love to bundle additional products — risky investments, annuities, insurance — along with their reverse mortgage offerings.

aconner@atconnercpa.com

Estimate start-up costs for your new business

Building a business from scratch involves hard work, long hours, and, statistically speaking, a high probability of failure. Yet as researchers Stanley and Danko noted in their landmark book, The Millionaire Next Door, "self-employed people make up less than 20% of the workers in America but account for two-thirds of the millionaires." For those businesses that survive, the rewards can be substantial.

Unfortunately, many businesses die before they get started. That's because entrepreneurs often fail to estimate start-up costs with reasonable accuracy. As a result, the company cash account dwindles to zero before sales catch up.

If you're preparing to launch a new business, take a hard look at the following:

• Assets. Your company's requirements will vary depending on the industry and market for your goods and services. But you should be able to construct a list of assets necessary to keep the business up and running for at least a year. If you're establishing a company in a brick-and-mortar location, you'll need to factor in equipment, furniture, point-of-sale cash registers, incorporation fees, licenses, signage, rental and utility deposits, and remodeling costs. A service-oriented firm may not carry substantial inventory, but a product-based company should estimate initial inventory costs as well. Equipment and furniture vendors should be able to provide reasonable cost estimates for such items.

• Expenses. Costs to launch a company will also include items not found on the balance sheet — outlays to keep the company running from day to day. These might include legal fees, website development costs, expenditures for office supplies, marketing materials, and rent and utility deposits. If you hire folks to help get the company off the ground, their salaries should be included in the expense estimate as well.

• Cash. Once you know how much your company will need for assets and expenses, it's time to develop a budget. Estimate revenue and collections for at least three months. Be conservative. Add up the cost of assets and expected expenses, then deduct cash in the bank and projected revenue. The difference will be your cash shortfall. This is the amount you'll need to garner from other sources, including bank and personal funds.

The more accurately you estimate the above items, the more likely your company will survive long enough to become profitable.

© MC 2014

aconner@atconnercpa.com

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Author releases book on a the taboo subject of under cover homosexuality. Seeks to take the subject out of the closet to allow healing, empowerment and restoration to individuals, families and communities.

FOR IMMEDIATE RELEASE CONTACT:

Philadelphia, PA January 6, 2014 – When Kendall Hayes started an organization with a mission to help women to overcome obstacles such as domestic violence, substance abuse and losing loved ones, it was because she herself had experienced these things and more. She felt that the best way to help herself was to help others.

The organization focused on bringing women together to conduct workshops for girls age 10-16 to help them identify behaviors at an early stage, providing preventive measures and allowing the young ladies to learn from the mistakes of others.

She discovered that there was an underlying issue that many women had either experienced in the past or were currently dealing with, but no one really talked about it or addressed it. It was the issue of women who loved men who slept with other men - men on the down low.

Discovering that your spouse is leading a double life can cause tremendous self-doubt and great psychological and emotional suffering and millions of women have experienced it in the U.S.

“We have heard the term down low for some years now. We’ve heard stories and read books about these men; I couldn’t remember reading one from a female point of view. We had “Invisible Life” and others by the late E. Lynn Harris, whose books told the stories of men living on the down low. We had the book by D. L. King who shared his story of living on the down low. But we didn’t have much from a woman’s perspective on the subject. The closest thing I can think of is the movie Cover, which showed how devastating it is when a woman finds out that her man is living a double life. I decided it was time for me to write a book. I had talked about it for a few years. Now it was time to stop talking and start writing.” Ms. Hayes shared.

As her 50th birthday approached, she realized one of the best ways for her to share a journey through trials to triumphs was through writing a book. In December of 2013, she finally completed her first novel – 'Seasons of Hope'. - a fictional account of one woman's journey through a series of unfortunate, life altering events including the devastating realization that her husband is gay. The story also follows one man’s struggle with his sexuality and the lengths he will go through to keep it a secret. It takes the reader on a spiritual journey through seasons of betrayal, grief, brokenness, healing, empowerment and restoration.

The fundamental issue behind ‘Season of Hope’ isn't that of homosexuality; whether or not homosexuality is right or wrong; whether they should be permitted to marry or not. That has no relevance to the story in which Hayes tell. The author seeks to bring to the light that which we have left lurking in the shadows far too long; it raises an important issue which we have publicly ignored and socially suppressed far too many times.

This fascinating book is more than just a good read - it is a step towards the light The author's hope is to take the subject out of the closet and begin open and honest discussions to help heal, empower and restore individuals, families and communities.

Author to Host Reading, Book Signing and Discussion About Gay Men Who Marry Straight Woman

Philadelphia, PA - Question: What’s worse than discovering that your husband is having an affair with another woman? Answer: Discovering that your husband is having an affair with another man.

Purchase your copy today.

Discovering that your spouse is leading a double life can cause tremendous self-doubt and great psychological and emotional suffering. and millions of women have experienced it worldwide. But as the old saying goes “There’s nothing new under the sun.” This behavior has been taking place since the days of Noah. Most women have just not realized that it is very much prevalent in this day and time.

 On Friday, March 21st at 6:00 PM, Hayes will read from her book ‘Seasons of Hope’ and take comments and questions from the audience. There will also be speakers who will talk about the down-low syndrome, or, people who outwardly live heterosexual lifestyles while secretly having same-sex relationships. Be a part of the discussion and join us as we take the subject out of the closet during the ‘Seasons of Hope’ reading and book signing.

 When: Friday, March 21st at 6:00 PM – 9:00PM
Where: The Urban Book Gallery 262 S. 52nd Street Philadelphia, PA 19139 ###