Small Business Classes

D

D.BRODESS

Well-Known Member
I was reading in my local paper this morning that my county will be offering a small business class. I havnt talked to anyone yet.being that they are closed till Tuesday. But,would it be something that would benifit me in my knifemaking,I think they have grants,loans that can help you get your business up and running.Not sure what to do. Have any of you attended any business classes?
Dan
 
If you can do it, DO IT.

First of all learning something you don't already know is NEVER a bad thing.
Second, it would benefit you greatly to find out the things you need to track and how to track them for not only determining your profits but for your taxes as well.
Third, any grants you can get will further your knifemaking by helping you get training, tools or materials.
Fourth, you have a great networking media in your class. All of the other students will have businesses of some sort that you can help and they can help you.

Definitely go for it.
 
Hi Bob
Thanks,I was hoping for a quick response.the deadline is on 17th of this month.
I will know more when I call for an appointment,but ,I think I will do it. I guess I have nothing to loose.
thanks!
 
Hi Dan,

I agree with Bob a basic business class can do nothing but help.

Regarding the grants, very difficult to get. The current administration is not "small business friendly"...unless you are hiring people. Veterans, the disabled and minorities will be looked at first. If you are a physically able white man...good luck.

The SBA (Small Business Administration) will provide loans. You will generally need a business plan (with your marketing plan included in that) and probably some collateral to put up. You will need probably a 750 FICO score for their best rate. They will ask for a Dunn and Bradstreet (D&B) report...you probably don't have one. However, D&B will be happy to provide you one for $500...or so I was told 18 months ago...by D&B). You can get a D-U-N-S number for fee...however to get any real info will cost you money.

If you go to a Bank for business loan...very difficult to get...again you will need your business plan, marketing plan and your financial's. Again a 750 + FICO and they will want your house or car as collateral. They will of course try to talk you into a re-fi or loan modification (which you can then take money out of the equity in your house). Then there is the HELOC...home equity line of credit.

The HELOC will run you between 4-5% interest (depending on your FICO and credit/debt ratio).

The way to do this for your business is....You first become a business entity (no not a sole-proprietorship)...more like a LLC (limited liability company). You do a contract between you and your business. You sell all of the equipment and materials you have bought to date to your company (fair market value). You company then pays you back the loan in monthly installments.

Note..this money is not taxable, nor do you pay Social Security or Medicare..Only the interest is taxable

As well if your company pays you rent this is taxable as regular income...but you do not pay SS or Medicare (you save 8-9%).

So if the Bank will give you a HELCO you can loan your company the money...and the company would pay your back. You of course charge the company enough interest to cover the interest for the HELOC.

You then write the interest for the HELOC off your personal taxes and the interest the Company had to pay (back to you) for the loan...and you write that off your company taxes.

I know that is sounds confusing...I will also tell you I know it works. :D

Long answer to a short question...attend the seminar. Remember if they are offering something that sounds too good to be true...look for the hook underneath that worm.

If you take nothing else away from this...find a good CPA and talk to them about your business....they will be worth every penny you pay them.
 
Hi Dan,

A CPA can explain all of that to you. There are huge advantages to actually making your knife making a business...not just in name only. Knife makers who utilize the "self-proprietorship" set up can lose thousands of $$$$ each year because they don't want to pay (and take the business guidance) of a CPA a couple of hundred $$$$

Taxes have been a hobby of mine for about 20 years. I took the HR Block Course 5 years ago...and I am currently enrolled again. With regards to both business and taxes...there is always something else to learn....which will save you money.

Remember the number one purpose of any business..is to generate a profit.
 
Hey!! Les
Ive been on and off here all day hoping to get some feedback.I know I need to do something,tired of setting still.
I need to get some kind of business education and get moving.
Ive been doing this on and off as a hobby for around 20 years,I always come back to it for some reason.
For the last two years Ive been making axes/hatchets.Ive sold everyone Ive made. Maybe I sale them to cheap!!
Not sure? I know I just want to move foward this time and get all the knowledge I can.
I will attend and see what its all about! Might need some more advice from you guys,if thats OK!
Dan
 
Hi Les,

I was referring to Federal tax. But that is a good point about sales tax...you would have to check. The good news is that TX has no state tax so that would have no impact.

When I sold my holdings to my corporation there were no sales tax.
 
Hi Les,

Is that what you did? Sold your equipment to your corporation?

I know each state is different.

Hell the county I live in charges 7% sales tax and the state is only 6%. Pays to check with a CPA.
 
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