Protecting Assets, Business Structures, and Proper Use of Tax Credits Can Help Small Businesses Stay Afloat During Covid-19 Crisis, According to Clint Coons
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“Fifty percent of small businesses don’t believe that they can continue operating for longer than 3-months as a consequence of Covid-19, and to add further financial stress, the FFCRA asserts that employers with under 500 employees must provide paid sick leave to all employees affected by Coronavirus,” says
Small businesses affected by the FFCRA should consider:
- Knowing the ins and outs of the CARES Act: “On
March 27th ,President Trump signed into law the ‘Coronavirus Aid, Relief, and Economic Security Act’ or the ‘CARES’ Act, a$2 trillion relief bill — the largest in history. The CARES Act funding options are limited, so it's important that you understand your options as quickly as possible,” says Coons. “ThisSaturday, April 4 th,Anderson Business Advisors is hosting a free webinar to help small businesses learn how to get some of the money the government is loaning and giving away. In the webinar, participants will gain an understanding of the complicated legislative language and learn what the relief options are based on where their business and personal finances stand right now.” - Tax credits to help small business: In one-year, small businesses withhold federal income tax, social security, and Medicare taxes from their employees’ wages, and pay a matching amount. In regard to the FFCRA, business owners can take from funds they normally pay to the
IRS in payroll taxes and pay their employees who are taking sick leave during this time. Employers won’t face any liability for payroll taxes, and they can expect 100% reimbursement. - Liabilities are continuing to increase: Expect Coronavirus related lawsuits in the upcoming year. Assign titles to your business and personal assets, which protects them from any potential creditor or liability threats. Start with your most lucrative and liability-vulnerable assets first. Remember, you don’t have to do everything at once; this is a process that happens over time, but it is recommended to start protecting the most important things first.
- Diversify your assets: As the saying goes ’don’t put all your eggs into one basket.’ With increased possibility of being sued, mitigate risks by diversifying your assets. With historically low rates, you can borrow from your retirement fund to buy real estate and pay yourself the interest against what you borrow from yourself. Now is the time to be creative and rethink your assets.
“By implementing new strategies, business owners can help overcome Covid-19 related obstacles. Protect your business and personal assets, review business structures, use the tax credit, and keep yourself afloat. There are millions of small businesses out there that will remain closed; be smart, make necessary adjustments, and be there for your employees at this time.”
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