Rick Gossett

As COO of Tarkenton Companies for more than 20 years, Rick has been responsible for business software development, unique partnerships, business educational content and consulting, and more. Rick was the originator of Tarkenton Companies’s consulting service and initially handled all of the questions himself. Prior to joining Tarkenton Companies, Rick owned and operated a private practice as a CPA. Prior to that, he was a Senior Manager at Pannell Kerr Forster in tax and audit, as well as Principal in Ernst & Young's small business advisory group.

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Should I have my friends and family invest in a bank CD that I utilize as a secured loan for my business?

In our opinion, having investors buy a bank CD (or CDs) to secure a bank loan is not a good option since the money is still at risk if you default on the loan (collateralized by the CD). Also, under this option, the investors would be getting a very low interest rate on the CD and taking all of the investment risk, while the bank would be getting a higher interest rate on the business loan with no, or less, risk.

What do I need to do to start a 501(c)(3)?

While the 501(c)(3) designation is often denoted as an organization, it is actually a tax exemption status, rather than an organization itself.  You will be required to form a business entity structure that qualifies for the 501(c)(3) IRS tax emeption status prior to filing for the exemption. We have provided information and resources below for you to review regarding how to form a nonprofit organization and how to achieve a 501(c)(3) tax emption status.

Would it be better as the owner of a sole proprietorship to invest in a 401k versus a simple IRA?

As a general rule, a 401(k) plan allows for much larger annual contributions overall and larger contributions at lower levels of income than a SIMPLE IRA plan which can make a 401(k) plan more appealing to both businesses and their employees.

I am starting to get orders from out of state, how do I handle the sales tax?

State and local sales and use tax laws vary; however, for sales made to customers in the U.S., when a business has no physical presence in a state, it typically has no obligation to collect sales tax in that state.

What are the tax problems with paying employees’ individual health insurance plans with a business check?

State regulations may prohibit insurers from accepting payment for individual health insurance policies from parties other than the individual insured, or it may be an internal policy intended to direct eligible employers to group health policies. You would need to check with the companies for the reason(s) for their policies.

Which Turbo Tax should I purchase for my home based business?

Intuit has several versions of TurboTax software that are geared toward the different tax preparation needs of its customers.  For example, if you have a home-based business that is structured as a sole proprietorship, which is an unincorporated business owned by one person, then the Home & Business version would generally be the preferred choice.

What is the maximum amount I can pay to an individual for services before I must file a 1099?

Independent contractors pay their own payroll taxes and insurances, including workers’ compensation, and are not covered by many labor laws, so the financial and administrative benefits of having a workforce composed of independent contractors can be significant.

 

Where can I read about authorized tax deductions?

Self-employed business owners (i.e. sole proprietors, partners, shareholder-employees of S corps, and LLC members) generally cannot deduct the cost of their medical insurance or medical and dental expenses, including those paid for family members, as a business expense.

 

What is a good program that you would recommend to maintain and keep up with the cost and inventory of materials, equipment, and supplies?

For software to handle your inventory, fixed assets and other accounting needs, we do not know the number of items and transactions you deal with; however, Sage 50 and QuickBooks are two of the most popular accounting software programs used by small businesses.

 

Can I get a loan for consolidating business loans together and how do I go about applying for them?

Checking with your current lender or lenders would be the first place to inquire about the availability of and requirements for a consolidation loan. Provided that your business is financially stable and generating sufficient cash flow to service any consolidated debt, has a satisfactory credit rating, and has remained current on its existing loans, your current lender or lenders will be the most likely sources for an affordable consolidation loan.