If you’re an aspiring entrepreneur with a keen eye for business opportunities, but lack sufficient capital, a search fund could be your answer. Entrepreneurship through acquisition (ETA) is a compelling pathway to realize your business ownership goals and own an established business. Search funds provide the financial vehicle to make that dream a reality. In …
Introduction Once you’ve gone under LOI with a potential buyer for your business the buyer will begin to conduct their due diligence. Sharing access to your QuickBooks file can make this process much faster and easier for bother parties. In this article we’ll be showing you just how to do that. QuickBooks Desktop When sharing …
Introduction One of the primary financing options for Entrepreneurship through Acquisition (ETA) is a Small Business Administration (SBA) loan, which is tailored to meet the specific debt needs of small businesses. As your business acquisition specialist, we at Midwest CPA have simplified what the Debt-Service Coverage Ratio (DSCR) is and how it is used when …
DSCR Calculator And Guide For Acquisition Entrepreneurs Read More »
Introduction The term “QoE” pops up often in business acquisition, but what is a quality of earnings report? When acquiring a business discerning the genuine financial health of a potential acquisition is a key part of good due diligence. This is the role of a Quality of Earnings report. The Quality Of Earnings Report A …
Introduction So, you’re in the market and wondering how to buy a business? Great choice! Acquiring an existing business can offer you immediate cash flow, a proven track record, and a faster path to profitability. As a specialist acquisition CPA firm, we’ve seen the benefits for our clients. In this post, we will walk you …
Introduction Acquiring a business offers the potential for significant gains, benefiting not only you but your family as well. However, there is also a substantial amount of risk that acquisition entrepreneurs are taking on. If you’re buying a business with a personally guaranteed loan, failure could decimate your financial future. That is why performing sufficient …
Numbers Don’t Lie: The Crucial Role of Financial Due Diligence Read More »
Why Make S-Corp Election? As a pass-through LLC your total income is going to be subject to self-employment taxes (also known as FICA taxes) equaling 15.3%. With an S-Corporation this is not necessarily the case. This is because when you make an election to be taxed as an S-Corporation you then will start to pay yourself a …
Introduction A common question we receive from our real estate investor clients at Midwest CPA is “Can land be depreciated?”. The short answer is no, but the topic is more complex than it seems. Once it’s established that land cannot be depreciated, the next question arises: “How much of the property purchase price should be …
Introduction In the realm of house flipping, every dollar counts when it comes to profitability. However, a prevailing myth has led many to believe that there are limited options for tax savings, particularly since house flippers are classified as dealers by the IRS. Consequently, each house flip is often carried out with minimal tax efficiency, …
Introduction Real estate professional status, commonly referred to as REPS, is a powerful tax planning strategy that can often result in thousands of dollars in savings for real estate investors. However, it is a very complicated and closely monitored portion of the tax code, so you need to be careful. Avoid taking shortcuts that may …
Qualify as a Real Estate Professional and Save Thousands Read More »
