America’s SBDC Blog

A “Forbes 100 Best Websites for Entrepreneurs”

Filing IRS Form 1099-MISC For Independent Contractors

November 13, 2018
By ComplyRight –

Tax PrepIf you work with independent contractors, you have to file a Form 1099-MISC with the IRS at tax time. Essentially, the 1099-MISC is to contractors what the W-2 is to employees. It covers income amounts, while also indicating you haven’t deducted any federal, state or other taxes.

Here are answers to common questions about filing requirements:

Q: What is the purpose of the Form 1099-MISC?
A: The form is used to report payments of at least $600 to any service provider (i.e., contractor, freelancer, consultant) who isn’t an employee. If the service provided was less than $600, you don’t need to file a 1099-MISC. One monthly payment of $300 wouldn’t require you to file the form, for example. But two separate $300 monthly payments within the same calendar year would. (more…)

Guide to Setting Prices

November 5, 2018
By Jennifer Lobb –

Price TagPricing can and often does make or break your business, and hastily setting prices without addressing important concerns can result in a whole host of problems, including plummeting margins, decreasing market share, or brand alienation.

Every business is different, and in many cases, the pricing strategy you choose is entirely reliant on the industry in which your business exists. However, though differences are plenty, there are some steps that, when incorporated into pricing efforts, will help you set prices that will support your financial goals while growing your business. (more…)

How to Hire Your First Employee (& When)

October 29, 2018
By Linsey Knerl –

EmployeeCongrats! Your small business is growing, and you’re starting to consider if it’s the right time to add on to your talent pool with your first, real hire. Up until now, you may have been relying on your own hard work, independent contractors, or even family members to get all the necessary tasks in your company accomplished. So, how do you know when you’re ready to take the plunge and raise your status to legal employer? These guidelines may help.

Know if You Need an Employee Now

Many tasks related to your business could be done by working with another independent contractor instead of an employee. While the determination should be made by following the laws stated for your state or local area, it’s generally OK to hire a contractor for tasks not specific to your business. Having someone come in and clean your t-shirt printing facility, for example, could be a freelance opportunity. Requiring someone to run your shop, print t-shirts, and deal with customers, however, is more likely an employee situation. Before you look at hiring an employee, be certain that it is indeed an employee you need to hire.  (more…)

What’s a Fair Price for a Privately Held Company?

October 22, 2018
By Shawn Hyde, International Society of Business Appraisers (ISBA) –

Publicly traded companies are valued every day on the stock market. But how do private business owners determine what a fair price is to buy out their partners? At what price they should sell their company? What’s the value of a 10% ownership interest in their company for gifting purposes?

The International Society of Business Appraisers (ISBA), www.intlBCA.com, exists to teach people how to answer these and other questions relating to the values of small businesses. Appraising privately held businesses involves logical thinking, financial analysis, and a healthy dose of practicality. (more…)

4 Benefits of Monitoring Your Business Credit

October 15, 2018
By Connor Wilson –

Monitoring business creditYou don’t need a new year to resolve to work on your credit. It’s a common goal, and as people look to buy a home or a new car or get out of debt, credit monitoring becomes a hot topic. If you’re a small business owner, you might be surprised to know that you don’t just have a personal credit score, you also have a business credit score to think about. In a Nav survey, 45% of responding small business owners did not realize they had a business credit score, 72% didn’t know where to find information on their business credit score, and 82% had no idea how to interpret their score. If you fall under any of those categories, it’s definitely time to learn more about your business credit score.

Running a business means time is at a premium, so why should you invest time in monitoring your business credit? Here are 4 benefits of keeping an eye on your business credit score. (more…)