Business Archives - Running USA https://www.runningusa.org/content_category/business/ Running USA Mon, 20 May 2024 22:42:38 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 May 2024 Research + Data Webinar https://www.runningusa.org/content_hub/may-2024-research-data-webinar/ Mon, 20 May 2024 22:41:52 +0000 https://www.runningusa.org/?post_type=content_hub&p=22442 The post May 2024 Research + Data Webinar appeared first on Running USA.

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Running USA Annual Town Hall https://www.runningusa.org/content_hub/running-usa-annual-town-hall/ Tue, 30 Apr 2024 21:12:29 +0000 https://www.runningusa.org/?post_type=content_hub&p=22311 The post Running USA Annual Town Hall appeared first on Running USA.

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Setting the Pace for Success: Key Takeaways on Business Setup and Asset Protection https://www.runningusa.org/content_hub/setting-the-pace-for-success-key-takeaways-on-business-setup-and-asset-protection/ Fri, 15 Mar 2024 02:20:11 +0000 https://www.runningusa.org/?post_type=content_hub&p=21971 The post Setting the Pace for Success: Key Takeaways on Business Setup and Asset Protection appeared first on Running USA.

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Running USA Member Webinar presented by Lonnie Somers, former RUSA Treasurer and Board Member

Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

On Tuesday, March 12, 2024, Lonnie Somers, (who still holds an active CPA license), co-owner of HAL Sports of Denver and a longtime endurance industry expert, shared tips on business setup and asset protection with attendees in an online webinar. Key takeaways are summarized below, you can view the presentation file here, and you can view the full presentation here.

Key Takeaways: Business Setup

By choosing the appropriate business entity, understanding tax implications, and maximizing deductions, individuals in the endurance industry can effectively manage their tax obligations while protecting their assets and maximizing their income.

Here are five key takeaways:

Choosing the Right Business Entity: A sole proprietorship is risky both from a tax perspective and asset protection standpoint. It exposes personal assets to business liabilities. Instead, consider forming an LLC or corporation for better asset protection and tax efficiency.

Benefits of LLCs: Limited Liability Companies (LLCs) offer pass-through taxation, separating personal assets from business liabilities, reduced compliance requirements, and flexibility in management and profit distribution. They’re easy to set up and maintain, providing significant advantages for small businesses and independent contractors.

Understanding S Corporations: S Corporations (S Corps) also provide pass-through taxation and limited liability. However, they offer additional tax benefits, such as saving on self-employment tax, tax-free fringe benefits, deductible losses, and the ability to take advantage of deductions like Section 179 for immediate depreciation of assets.

Tax Savings with S Corporations: Electing S Corp status can result in substantial tax savings. By paying yourself a reasonable salary and taking advantage of deductions, you can significantly reduce self-employment tax obligations and increase your take-home income. Additional benefits include tax deductions for vehicle expenses, travel expenses, and retirement contributions through SEP-IRAs.

Maximizing Retirement Contributions: Utilizing retirement accounts like SEP-IRAs allows you to contribute a significant portion of your income, reducing taxable earnings and saving for retirement. These contributions serve as additional deductions, further lowering your tax liability.

Key Takeaways: Business Setup

Lonnie emphasized the importance of proper planning, seeking expert advice, and taking proactive measures to safeguard assets and protect against potential risks.

Here are five key takeaways:

Importance of Asset Protection: Asset protection is crucial in a litigious society where unforeseen circumstances can jeopardize livelihoods. Even if the business is a side hobby or a full-time venture, safeguarding assets is essential to ensure financial stability and long-term viability.

Understanding Asset Protection Plans: Asset protection plans involve implementing legal strategies and measures to safeguard business assets from lawsuits and creditors. It is important to separate personal and business assets to mitigate risks and protect both the business itself and the individual owners.

Key Areas of Asset Protection: Insurance plays a vital role in asset protection, including general liability, umbrella, and professional liability insurance. It’s important to understand the terms of insurance policies, especially regarding when the insurance company will have a duty to defend, even in frivolous lawsuits.

Asset Segregation and Business Entities: Properly structuring business entities such as LLCs and corporations can provide limited liability protection. Segregating assets into separate legal entities, such as trusts, can further shield personal assets from business risks.

Examples and Strategies for Asset Protection: Examples include separating active, passive, and risk-related assets into different entities, such as real estate owned by separate entities to minimize overall risk exposure. Utilizing legal tools like trusts can offer anonymity and protection from lawsuits.

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Watch the full video to gain more insight and stay tuned to Running USA’s newsletters for information on future member webinars. Subscribe here.

 

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Tax and Business Formation Tips (Member Webinar) https://www.runningusa.org/content_hub/tax-and-business-formation-tips-member-webinar/ Fri, 15 Mar 2024 02:09:10 +0000 https://www.runningusa.org/?post_type=content_hub&p=21968 The post Tax and Business Formation Tips (Member Webinar) appeared first on Running USA.

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Q&A with Jay Holder, Executive Director of Running USA https://www.runningusa.org/content_hub/qa-with-jay-holder-executive-director-of-running-usa/ Wed, 01 Nov 2023 21:32:56 +0000 https://www.runningusa.org/?post_type=content_hub&p=21231 The post Q&A with Jay Holder, Executive Director of Running USA appeared first on Running USA.

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How to Sell Your Running Race: Tips and Considerations https://www.runningusa.org/content_hub/how-to-sell-your-running-race-tips-and-considerations/ Wed, 11 Oct 2023 17:20:54 +0000 https://www.runningusa.org/?post_type=content_hub&p=21101 The post How to Sell Your Running Race: Tips and Considerations appeared first on Running USA.

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Every good race director knows that timing is everything. And yet, along with many other small business owners, many race and event owners haven’t adequately trained for their own exits. In fact, Running USA’s research shows that exit planning is top of mind for race owners, with many sharing that they would like more information about exit planning and ultimately selling.

Of course, starting can be the hardest part. Especially, with so many questions to answer. When is the best time to sell an event business? How are they valued? Who might the buyers be? How long will the process take? And what might that finisher’s medal look like — the purchase price? Here are some ideas and tips to consider:

1. Get a confidential analysis of the value of your business

Whether you’ve got a young event, and hope to run it for decades, or if you’ve had your race for awhile, and are starting to think about what’s next, a business valuation is an essential tool. It will give you that 30,000 foot view of the business, including what it’s worth. With a professional opinion of market value from an experienced broker in hand, you get to decide what’s next: take this info, and continue to improve your event, or go to market.

2. Plug into a network of interested buyers

There are multiple types of buyers actively seeking to purchase event businesses. Individual investors, private equity firms, other race owners, non-profits, etc. But the key is finding them, and entering the marketplace in a way that protects confidentiality, and ensures you get in front of the right people. This is where working with a networked intermediary is incredibly useful. In addition to their connections, it also allows you to focus on your life and business without distraction.

3.  Prep for ‘race day’ by having your house in order

Just as you wouldn’t run a half marathon off the couch (have done, don’t recommend), going to market is like race day. Financial records should be in order, tax returns filed (and not on extension), operating procedures documented, sponsorships and permits solidified, and equipment inventoried and serviced. Everything about the business will be scrutinized by a buyer. Preparation is 90% of success.

4. Give yourself plenty of time — and don’t end up in the med tent

Business owners often underestimate the time required. It typically takes 3-9 months to sell a business. So it’s more of a marathon than a 5K. There are many steps to a business sale: following the evaluation, there is the marketing of the business, screening and meeting with buyers, negotiations, and finally, deal facilitation and closing. Each step is highly nuanced, but the goal is the same: get you to the finish line with the highest result possible.

5. Timing the sale for a new owner sprint to the finish

Cash flow is KING in business sales. It is what makes all the hard work on a race worth the effort.  It is also what drives a buyer to purchase a business. Running can be a great hobby, owning & operating a race is done for financial renumeration. When the registration fees start rolling in it is like Christmas Day for a race owner, it is also what pays all the accumulated bills. The best time to purchase a race is 3-4 months before the race occurs, so the buyer can learn all the administrative activities necessary to successfully execute the event. It also results in two “Christmas seasons” in less than 18 months. Compare that with someone who buys a race shortly after it is completed, that individual will receive only one Christmas in 18 – 20 months, a far less attractive scenario for investment.

6. Prioritize what you’d most like to get out of the sale — and revisit

Write down a list of the top three things you want to get out of the sale, and rank them in order of importance. For some people, that might be the financial outcome; for others, it might be legacy (such as selling it to a local runner). Later, in the sale process, you can go back to this list as a way to stay focused and centered. Ultimately, the goal is to have you look back on the transaction, five to ten years out, with a strong sense of satisfaction — knowing that you did everything you could to honor and maximize the value of what you’d built. That feeling never gets old!

 

About the author: Sally Bergesen is a Business Sales Intermediary with Run Broker and IBA. She helps owners of privately-held and family-owned businesses successfully sell their companies. Prior to joining IBA, Sally founded and ran Oiselle for 16 years. After selling the business, she wanted to help other entrepreneurs achieve successful exits. Sally can be reached at sally@ibainc.com or (425) 454-3052.

 

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Music Licensing from Running USA https://www.runningusa.org/content_hub/music-licensing-from-running-usa/ Mon, 24 Jul 2023 20:43:53 +0000 https://www.runningusa.org/?post_type=content_hub&p=20579 The post Music Licensing from Running USA appeared first on Running USA.

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Allianz Partners Offers Peace of Mind to Running USA Members https://www.runningusa.org/content_hub/allianz-partners-offers-peace-of-mind-to-running-usa-members/ Fri, 02 Jun 2023 16:46:27 +0000 https://www.runningusa.org/?post_type=content_hub&p=19402 The post Allianz Partners Offers Peace of Mind to Running USA Members appeared first on Running USA.

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Cash vs. Accrual Accounting https://www.runningusa.org/content_hub/cash-vs-accrual-accounting/ Thu, 01 Jun 2023 14:58:48 +0000 https://www.runningusa.org/?post_type=content_hub&p=19359 The post Cash vs. Accrual Accounting appeared first on Running USA.

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Handling Your Own Accounting https://www.runningusa.org/content_hub/handling-your-own-accounting/ Tue, 30 May 2023 14:16:18 +0000 https://www.runningusa.org/?post_type=content_hub&p=19247 The post Handling Your Own Accounting appeared first on Running USA.

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