Business=Asset

[JuneFirst 1]

It is me again

Is a business considered an asset? If so: does anybody know how to figure out how much a business is worth?

[LotofPatience 65]

It is me again

Is a business considered an asset? If so: does anybody know how to figure out how much a business is worth?

Business is not asset, it is an entity.

Business will have asset and liability aiong with income and expenses. At the end of the year, net income/loss will be transferred to profit and loss account. This account's money (full or part) can be distributed as dividend to the shareholders or to the owner. Some can be re-invested to the business expansion. Ultimately, business will have a balance sheet where it derives the net asset.

If you or your spouse is the owner of this business and under the sole propreitorship, you can prove it as your asset.

Loto

BTW - I am neither an accountant nor a legal expert.

I am a Senior Software Architect and doing independent consultancy to the clients.

[JuneFirst 1]

Business is not asset, it is an entity.

Business will have asset and liability aiong with income and expenses. At the end of the year, net income/loss will be transferred to profit and loss account. This account's money (full or part) can be distributed as dividend to the shareholders or to the owner. Some can be re-invested to the business expansion. Ultimately, business will have a balance sheet where it derives the net asset.

If you or your spouse is the owner of this business and under the sole propreitorship, you can prove it as your asset.

Loto

BTW - I am neither an accountant nor a legal expert.

I am a Senior Software Architect and doing independent consultancy to the clients.

Thanks Loto...

One more asset to put on our i864

Mh, I wonder if our tax-attorney can help us figure out the value of our business? Any ideas?

[Darnell 8,478]

Suggest you consult a CPA instead of a tax-attorney.

Seriously.

[I & G 1]

If your business has any value and it is a Corporation the value of the business is an asset of the Corpaoration and does not transfer to you personally. You as a director or officer of this Corp. have voting rights to sell or borrow for the business but the asset belongs to Corp. You should be filing a Corporate tax return and a personal tax return. If you are a S Corp. the adjusted gross income on your schedule C flows through to your personal tax return and taxes are paid personally by you not the Corp.

Your business may have value but probably not considered a personal asset but an asset of the business. Ask your CPA he will have your answers.

Good Luck.

[I & G 1]

I did a little more research. This is a quuote from the I-864.

Only assets that can be converted into cash within one year and without considerable hardship or financial loss to the owner may be included. The owner of the asset must includea description of the asset, proof of ownership, and the basisfor the owner's claim of its net cash value.

The business as an asset is not a liquad asset. If you sold the business it would be a financial loss to you as you would no longer benefit from the income.

[LotofPatience 65]

If your business has any value and it is a Corporation the value of the business is an asset of the Corpaoration and does not transfer to you personally. You as a director or officer of this Corp. have voting rights to sell or borrow for the business but the asset belongs to Corp. You should be filing a Corporate tax return and a personal tax return. If you are a S Corp. the adjusted gross income on your schedule C flows through to your personal tax return and taxes are paid personally by you not the Corp.

Your business may have value but probably not considered a personal asset but an asset of the business. Ask your CPA he will have your answers.

Good Luck.

Thta's why I suggested "sole proprietorship". Because your SSN is tied up with the business entity and the business parties have the interest on your personal assets, if it goes wrong.

S-corp on the other hand associated with FEIN (Federal Employer Identification Number) and separates the business asset and liability from you personally.

Both type's income/expenses flows through Schedule-C of 1040.

Thanks I & G for your input.

JuneFirst, make sure it is "sole proprietorship" and check with your CPA as well. Also, if you qualify business asset and short of $10,000 to bring the financial resource above the poverty line, you need 3 times (assuming the sponsor is USC), ie, $30,000 asset.

Good luck!

Loto

[I & G 1]

This topic sparked my interest. Here is what you could do. make sure your business is a Corp. Pay yourself say 1000 or 2000 per month from the Corp. Deposit the funds into your personal bank account. Your Corp would have to withold taxes on the income. If your business needs the money to operate set up a personal loan from you personaly to the business and give the money back to the business. The employment letter would come from your business to you and you would be considered an employee. This would be considered income for you and could be added to your other income you are declaring. The problem is what does your last years tax returns show as income. Run this by your CPA.

[JuneFirst 1]

Wow, that is a lot of information and a little difficult for me to understand since I am not into all of this business stuff at all.

It is a Sole-proprietorship.

Which (if understood right), can be claimed as an asset, right?

Does anybody know how long it takes to figure out the value of a business?

My husband makes enough money to sponsor me, but due to backtaxes we thought we would put the business on the I864 and have a co-sponsor just to be on the safe side?

Or is that over-doing it?

Thanks!

[IndigoSkies 168]

Why on earth would you complicate not only your life but also the immigration officers life by overcompensating? Seriously, everytime I hear or read about overcompensation in VJ, I think of that one couple who sent in picture of them having sex to prove their marriage. -shudders-

[I & G 1]

If you can avoid putting the business on the I864 I would as it might open up a can of worms. Just my opinion.

[LotofPatience 65]

Wow, that is a lot of information and a little difficult for me to understand since I am not into all of this business stuff at all.

It is a Sole-proprietorship.

Which (if understood right), can be claimed as an asset, right?

Does anybody know how long it takes to figure out the value of a business?

My husband makes enough money to sponsor me, but due to backtaxes we thought we would put the business on the I864 and have a co-sponsor just to be on the safe side?

Or is that over-doing it?

Thanks!

I would strongly suggest you to show your husband's regular income to support you, after making back tax payments to IRS or any arrangements.

CPA is just good enough to evaluate your business asset. They would be completely unaware of immigration stuff. If you still would like to pursue this way of sponsorship, talk to both CPA and an immigration attorney.

Since you have specified it is Sole-proprietorship, your chances are high to qualify.

Loto

[JuneFirst 1]

I think of that one couple who sent in picture of them having sex to prove their marriage. -shudders-

Alright,one last question: do you guys think we should just send in my husbands affidavit (more than 125% but IRS backtax - no settelment so far) or should we also send in a co-sponsor right away?

..talking about over-doing it

[LotofPatience 65]

Alright,one last question: do you guys think we should just send in my husbands affidavit (more than 125% but IRS backtax - no settelment so far) or should we also send in a co-sponsor right away?

..talking about over-doing it

I think that's the best bet for you. Send the co-sponsor's as well.

Loto

Why on earth would you complicate not only your life but also the immigration officers life by overcompensating? Seriously, everytime I hear or read about overcompensation in VJ, I think of that one couple who sent in picture of them having sex to prove their marriage. -shudders-

Good one :rofl:

Loto