Taxes

Published Apr. 26, 2011 application/msword icon

Few new business owners are aware of all the taxes involved.  This provides a guide.

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Nacho Mama’s

Patience and planning have certainly paid off for Raul Cantu. In 1996, after spending eight years working around the country in the food and beverage industry, Raul saw an opportunity to open his own Mexican restaurant in Richmond, VA. A “for sale” sign in the window of a business in a good location was all the inspiration he needed.

But inspiration wasn’t enough to open the necessary doors. Although he had extensive work experience, good credit and a sound business plan, Raul needed assistance with getting financing for his restaurant from the banks.

Owner/Founder
Raul Cantu
My Location
Richmond VA
United States
Year Company Formed
1996
My Successes

Raul opened the restaurant in Carytown, an upscale, eclectic shopping district in central Richmond. His Nacho Mama’s restaurant was an immediate hit, with authentic recipes from his native Texas and Mexico proving so popular that Raul had to run to a grocery store on the eatery’s opening night when his kitchen ran out of food.

Today, Nacho Mama’s is a favorite gathering spot for locals. The restaurant has received numerous local awards for its food and drinks, and total sales have increased an average of 10 percent each year since it opened.

Even though he’d found success in the restaurant business, Raul had ideas about exploring other avenues of business. In 2001, after a trip overseas, Raul was inspired to open a men’s clothing store. Drawing from his previous work with SCORE, he developed a plan and found another location in Carytown. He drew from his previous experience with SCORE to set up his new venture. Raul says, “I used what I had learned from SCORE in starting my first business to establish a business plan for Adonis, and got advice from them on how to set up a business partnership.”

Adonis opened with a quick start, as first-year sales surpassed expectations by nearly 30 percent. Numerous requests by female shoppers looking for women’s clothing prompted him to expand the store in the fall of 2003, renaming the store Adonis/Aphrodite. Despite the arrival of two new malls in Richmond and several business days lost due to Hurricane Isabel in the fall of 2003, sales have increased more than five percent from last year.

Raul’s success in Richmond has helped him become as a prominent local business leader. He was appointed by Virginia Gov. Jim Gilmore to sit on the Virginia Small Business Advisory Board from 1998 to 2000. He also currently serves as president of the Carytown Retail Merchants Association. Raul has also returned the favor to SCORE, speaking to Richmond SCORE volunteers and aspiring entrepreneurs about how SCORE gave him the guidance he needed to become successful.

What's Great About My Mentor?

Raul turned to SCORE for assistance. After attending a SCORE seminar on business start-ups, Raul worked with Richmond SCORE Counselor Fred Esposito and other mentors to determine what he needed to do to make his dream happen. “They helped me fine-tune my business plan, directed me to the right banks and after that I was approved for a loan within eight hours,” Raul says. “SCORE helped me learn about the part of the business I didn’t know, things like taxes and how to manage the payroll.”

How SCORE Helped

“I have customers and other people interested in owning their own business ask me how to get started,” Raul says. “I always tell them to contact SCORE, and go to a SCORE seminar. SCORE gives you straightforward advice and the seminar gives you the basic essentials you need to know.”

Published Apr. 23, 2011

Resources

BuzGate
A great resource for small businesses in New Hampshire

Upper Valley business resources
Vermont SCORE Chapters
New Hampshire SCORE Chapters
New Hampshire Small Business Development Centers
Vermont Small Business Development Center
Micro-Credit, NH , 7 Wall Street, Concord, NH 03302, tel 603-223-0634
Northern Community Investment Corporation , serving Coos, Grafton, and Carroll counties in New Hampshire; and Caledonia, Orleans, and Essex counties in Vermont.
Green Mountain Economic Development Corporation

Upper Valley Towns
Hanover, NH
Lebanon, NH
Littleton, NH
Claremont, NH

Upper Valley Businesses

Upper Valley Organizations

State Government Resources
NEW HAMPSHIRE
VERMONT

Upper Valley Chambers of Commerce
HANOVER AREA CHAMBER OF COMMERCE
LEBANON CHAMBER OF COMMERCE
NEW LONDON LAKE SUNAPEE REGION CHAMBER OF COMMERCE
WOODSTOCK CHAMBER OF COMMERCE

Legal Services
A valuable collection of legal and regulatory information for America's small businesses is at businesslaw.gov.

Vermont Bar Association Lawyer Referral Service, 800-639-7036, first half-hour no more than $25.
New Hampshire Bar Association Lawyer Referral Service, 603-229-0002, first hour $25.

New Hampshire Corporate Attorneys

Concord
David Howe, Rath, Young & Pignatelli, 603-226-2600
Peter Burger, Orr & Reno, 603-224-2381
Dodd Griffith, Gallagher, Callahan & Gartrell, 603-228-1181
David Fries, Cleveland, Waters & Bass, 603-224-7761

Manchester
Scott Ellison, Devine, Millimet & Branch, 603-669-1000
Michael Kasten, Sheehan Phinney Bass & Green, 603-668-0300
Stephen Patterson, Wiggin & Nourie, 603-629-4526
Curtis Little, Cook, Little, Rosenblatt & Manson, 603-621-7104

Financing Agencies
SBA504 PROGRAM , expansion financing for companies acquiring facilities that will create or preserve jobs; Wilmer Jones, 225-1400x130.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM , to create jobs for low to moderate income workers through business expansion
FINANCING SOURCES , a list of possible sources of funds for starting your business..

Business Assistance Programs
NEW HAMPSHIRE BUSINESS AND INDUSTRIAL DEVELOPMENT AGENCY , offering information and resources for New Hampshire business development.
SMALL BUSINESS DEVELOPMENT CENTER, providing free counseling from subcenters in Concord, Durham, Keene, Littleton, Manchester, Nashua, Plymouth, Portsmouth, and Rochester.
NEW HAMPSHIRE BUSINESS AND INDUSTRIAL DEVELOPMENT SITES, a data base of available buildings and industrial parks.
SMALL BUSINESS TECHNICAL ASSISTANCE PROGRAM, helping small businesses comply with state and federal environmental regulations.
NEW HAMPSHIRE SMALL BUSINESS DEVELOPMENT CENTER, supported by the US Small Business Administration and the University of New Hampshire.

SCORE Partnerships
 Corporate Turnaround and SCORE have formed an alliance to help businesses get out of debt.  Corporate Turnaround has helped thousands of smaller companies find financing, settle past-due debts, resolve tax problems and avoid bankruptcy.

Reference Library (some materials available in SCORE local office)
BUSINESS EKG, The Kauffman Business EKG provides a comprehensive assessment of your company's financial vital signs.
US CENSUS BUREAU, a source of population and economic data.
1997 NAICS and 1987 SIC CORRESPONDENCE TABLES, categorization of all US businesses, useful for starting market research.
Starting & Operating a Business in New Hampshire , Michael Jenkins
SMALL BUSINESS SOURCEBOOK, contact us about this wealth of information about 336 small business profiles including relevant trade and professional associations, licensing information, educational directories, periodicals, franchises, software, etc.
Also, contact us about ALMANAC OF BUSINESS AND INDUSTRIAL FINANCIAL RATIOS, 50 financial ratios and key operating data for 179 industries, derived from millions of US companies, useful for business modeling or diagnosis.

How To Articles
Published Apr. 22, 2011 application/pdf icon

 

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Taxes are one of the most important issues facing small and growing businesses. And like a company's profits, its annual tax bill will in part reflect the owner's skills and knowledge. Business owners need to be sure that they are meeting all of their responsibilities to the tax man -- and also seizing every opportunity to reduce their taxes. These tax tips will ensure Uncle Sam is not getting more than his due.

SPANISH: La creacion de un Estado de Perdidas y Ganancias

Summary

This free, online business workshop will: outline the components and process of a profit and loss statement, illustrate 2 formats of profit and loss statements, and help you gain greater insight into the growth and financial health of your business.

How To Articles
Published Apr. 21, 2011 application/pdf icon

Barter transactions can provide your company with important financial, sales and marketing benefits. Like other transactions, however, barter sales are taxable, and your company must report them to the IRS.  Learn more here.

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The U.S. government considers barter exchanges to be legal third-party record keepers, similar to banks, brokerages and other firms that deal with taxpayer records. Barter exchanges are required to complete and submit Form 1099-B, "Proceeds from Broker and Barter Exchange Transactions," for each of their members and the IRS. In order for the exchange to complete this form, you'll need to give the broker your taxpayer identification number.

Blythewood Tae Kwon Do

It’s a long way from South Korea to South Carolina.  But for U-Yong Skroback, owner of Blythewood Tae Kwon Do, the journey has been far more than one of distance. 

Owner/Founder
U-Yong Skroback
My Location
Blythewood SC
United States
Employees
3
Year Company Formed
1999
My Successes

Although Tae Kwon Do is a Korean martial art, U-Yong knew little about it until she signed up for a class as something fun to do with her son, Brian. Within three years, she had earned a Black Belt and became interested in sharing these skills with others.  Her classes in a church recreation program proved so popular, U-Yong invested her savings into converting a former auto repair shop into her own Tae Kwon Do studio.

What's Great About My Mentor?

Soon after U-Yong started her business in August 1999, a neighbor suggested that she contact the local chapter of SCORE. “There was so much to running a business that I didn’t know about—cash flow, accounting, taxes, everything,” U-Yong says. “Thankfully, Maxey Love was ready and willing to show me what I needed to do, and how to do it right.”

The former CEO of a local bank, Love had the accounting and financial experience that U-Yong needed. After an introduction to the various types of financial statements, he and U-Yong devised a record keeping system that enabled her to categorize business expenses and reconcile them with her bank statement. Love also guided U-Yong through the preparation of her first business tax return and other license fee payments, then proudly escorted her to the appropriate offices to file the documents.

And though she no longer works directly with Love, U-Yong credits him for having helped her became a true American success story. “Maxey was so wonderful in providing comfort and encouragement when I needed it,” she says.

How SCORE Helped

“I’m grateful that there’s an organization like SCORE that can help me and other people start their own businesses.” says U-Young.

How To Articles
Published Apr. 21, 2011

Learn how to understand home office deductions by using these five tips brought to you by SCORE Mentors.

 

  • Take advantage of every legal opportunity to reduce your taxes. Recent changes in the law benefit business owners who use their homes as an administrative and management base but work at other locations—such as plumbers, general contractors and health-care professionals.

  • Ask your tax professional to analyze your business regularly so you don’t miss important deductions.

How To Articles
Published Apr. 21, 2011

Learn how to correctly file your taxes by using these five tips brought to you by SCORE Mentors.

 

  • Consult a tax advisor, even if you are a start-up. A professional can save you both money and valuable time and keep you from running afoul of the Internal Revenue Service.

  • Pay estimated federal and state taxes four times a year. Your tax advisor can help you determine how much to set aside ahead of time for each payment.

  • Keep good records of both income and expenses. Save all receipts.

Quick Start Business Plan

Summary

Learn great tips and tools for your business plan in this webinar brought to you by TSBC and SCORE.

It is suggested that you create an account if you have not already done so before taking this online workshop.  This workshop is interactive and your progress can be saved if you have created an account. When taking the online workshop, be sure to click Go To Action Plan as you progress through the program as this will save your work.

 

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