Home Forums Hunting & Shooting Hunter's Campfire Any Small Business Owners Here?

#baldisbeautiful

ct - sent you a PM.

I haven’t read the thread but my brother is a CPA and from what he has seen so far, he believes that the stimulus bill is going to be a nightmare that may actually have the opposite of the intended effect and run a lot of small business owners out of business.

Don’t disagree on the nightmare part. Curious why he thinks this ... if you care to elaborate.

I'm in construction too. Small operation with a couple of employees. We specialize in residential remodeling and building but focus on extensive remodeling jobs with some of them being upwards of 500k. We do custom work not production work. We are still working too and we have enough work booked for at least the next 9 months to a year. The phone is ringing all the time. I haven't had anyone on unemployment since 2008 or 2009. I initially felt just like you. I've been in business for 16 years and have always made my own way and I'm very proud of that. But sometimes I'm torn. The government doesn't mind taxing the hell out of guys like us. I even pay a local business privilege tax. There's a lot of times when I am writing those checks to them when I don't have the money and I damn sure wouldn't mind having that money back. Like I said, I haven't had anyone on unemployment since 2008 or so, but I still pay in with no plans for putting anyone on unemployment. Case in point... I have a friend that recently retired. He owned several McDonalds. He should be the poster child for them....He started working at McDonalds in high school flipping burgers and stayed with it. When he retired he owned 6 of them. In conversation he told me that he had over 800k in his unemployment reserve fund. He had over 300 employees, never laid anyone off and he wasn't entitled to a cent of his money back.
So like I said, I'm torn. At first I looked at it like Socialism, but I feel it's more like socialism when they are handing money out to those who haven't contributed. Part of me wants to keep on going as I am and thumb my nose at the government aid, but part of me wouldn't mind having some of my money back either. Hopefully I'll be able to keep on taking care of myself and I won't have to make that decision.
Either way, I tip my hat to you and your business operating skills!

Tag

Jack, Im glad your business is healthy. I'm very proud of the fact that mine is too. I have worked hard for many years to make it that way. I have high confidence that will help in weathering this storm as it has helped us in prior difficult times. Never taken a dime from anyone in 40+ years in business. Always paid for everything as we went along.

However, I must say that your last comment seems pretty short sighted. None of us knows what's coming down the road, how bad, how long, or how disruptive to our economy this might be. You've managed to get thru the 1st 2 weeks of a shut down.......not a huge deal and it certainly doesn't make you a business phenom. You and any business may be faced at some point with tough choices we can't even comprehend right now. Let's hope not.

Based on what you say if the govt sends your employees a check they should send it back or they are liberal democratic socialists and give up their right to free speech if they don't??? Are you asking that of any of your employees?

What I'm saying is everyone will have to make their own choices. I'm not gonna look down on anyone if they do what they think is right at the time for themselves and their families.

Questions for you Jack.
Does you business operate as a non profit forfeiting all profits to others that don't do quite as well? If not please don't ever criticize any Democrat/liberal/socialists ever again.
Does your business file a tax return and take advantage of any existing tax deductions? If so please don't ever criticize any Democrat/liberal/socialists ever again.
Does your business depreciate any of the equipment it owns? If so please don't ever criticize any Democrat/liberal/socialists ever again.
Does your business write off business tangible property? If so please don't ever criticize any Democrat/liberal/socialists ever again.
Does your business ever write off anything on Section 179 expensing form with your taxes? If so please don't ever criticize any Democrat/liberal/socialists ever again.
Have you or your company ever received a tax refund and if so did you give it back? If not please don't ever criticize any Democrat/liberal/socialists ever again.

Ridiculous right..... I could go on and on but i think you get my point. Every prudent business person in America should be looking very carefully at all their options right now including what is available to them in this stimulus package. Every business can and should be open to anything morally ethical and legally available to them most especially now. If it makes good business sense that's a decision they will have to make. So please stop telling everyone what a great American business man you are and others are not if they don't think and act just like you. Stuff like that doesn't help anyone and in fact does not help you look like the wise businessman you portray yourself to be.

After 40+ years in business I've seen hard times before. The only thing I know that has worked for me every time is to keep grinding and that is what I'll do. I have gone many many times without a paycheck to ensure my employees and my vendors got paid on time. I survived the early 80s when interest rates and unemployment spiked, late 80s recession, downturns in the 90s and 2008. I've worked my ass off and never made a dime I didn't earn. I don't need to brag on the internet about how many people I employ, how much equipment i own, and on and on....... What I am very proud of is that I have numerous employees that have been with me for 20-25 and some over 30 years. ALL my employees participate in a 100% company funded Profit Sharing Plan. I'm very proud of that and I'm gonna do what is right for my employees, subs, and vendors to get thru this current situation including looking at ALL my options and make what I believe will be the right decisions based on good business sense and my own instincts. I will find no fault in others that do or don’t do the same.

Best of luck to all business owners out there including you Jack. Stay safe


​

Summary of Small Business Relief in COVID-19 Legislation
For Companies:
I. Paycheck Protection Program1
a. Cash flow assistance to small business with 500 employees or fewer from the SBA
b. Low interest loans equivalent to 2.5x average monthly payroll costs or $10 million,
whichever is less.
c. Meant to cover payroll costs, paid sick leave, supply-chain disruptions, employee
salaries, health-insurance premiums, and mortgage payments.
d. If the employers maintain their payrolls until June, the portion of the loans used for payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven (i.e. the loan becomes a grant).
e. Reduction in headcount proportionately reduces the amount of loan forgiveness.
f. A similar program is available for companies with more than 500 employees through the
Federal Reserve.
II. Employee retention credit2
a. Refundable credit against payroll taxes (employer 6.2% OASDI).
b. Credit amount of 50% of up to $10,000 in wages paid per employee (maximum credit
$5,000 per employee)
c. Applies to companies affected by COVID-19 shutdowns or 50% reduction in revenues
from same calendar quarter in the prior year.
III. Delay of payment of employer payroll taxes3
a. Allows employers (and self-employed individuals) to defer payment of the 6.2 percent employer-side Social Security payroll tax, effective for wages paid between the date of enactment and December 31, 2020.
b. Payment ultimately would be due in equal parts on December 31, 2021, and December 31, 2022.
IV. Net Operating Loss (NOL) carryback rules reinstated and expanded
a. NOLs from tax years 2018, 2019, 2020 can be carried back 5 years to claim refunds from taxable years
V. Due date for Federal income tax returns and payments due April 15, 2020 automatically
4
1 Coronavirus Aid, Relief, and Economic Security (CARES) Act 2 Id.
3 Id.
4 IRS Notice 2020-18

I'm in construction as well. Have 11 FTEs and all are still working. We are trying to keep our regular contractors as busy as possible, the guys who do both commercial and residential are still plenty busy even without us calling. Home sales will tank for a bit, for sure, but we will be just fine without any outside assitance.

A friend of mine who runs a commercial roofing factory tells me his demand is up 40% versus 2 weeks ago, which puts his MTD business 30% over March of last year. He is adding a shift because his people are working 70 hour weeks.

163,
Our CPA has said the paycheck Protection program covers salaries up to $100,000 annual basis - prorated for the 2.5 months. Portion of salary over 100k is not eligible.
Have to maintain your March 1, 2020 payroll through June 30, 2020 and it could be forgiven.
Buyer beware, nobody fully understands everything yet.

This

jackmountain, you have mail.

Our business is doing fine, since it is just myself, the wife and our IT guy. It guy is just working from home, and since we are an essential business, wife and I have been working long hours, and trying to be extra careful to not get sick, because if one of us caught the Corona, we're both out for two weeks. We have been having some issues with our suppliers being slow to deliver because of reduced workforces, but our customers have been very understanding and patient.

60 employees and we are turned completely off. Have been paying our employees to stay home.

I own a restaurant/bar. Fun times. Take out, delivery, curbside pickup will not even come close to paying the bills. My rent alone is $8-9K a month.

I will fight tooth and nail to keep the place open, hopefully things get back to normal a bit quicker than anticipate. When the cash register starts ringing again my liver can catch a break. Tired of cleaning.

If the corona doesn't get me a stroke, heart attack or liver damage will.

Good luck to all the other business owners and anyone severely impacted by Covid-19.

Things look pretty gloomy right now and it will remain so for a while, I still do not believe all the worse case scenarios. My money is on May we get back to almost normal for the majority of the country. Hope so...