Business Briefs Local Commerce at a Glance
Helena bank is purchased
A Helena-based company says it has reached an agreement to buy First Security Bank of Helena. Ascent Bancorp expects to close that deal as soon as April 1. The company plans to keep First Security’s name and its employees. It did not disclose the family-owned bank’s purchase price. First Security, located at 1721 11th Ave., was founded by Montana native Paul Caruso in 1970. Ascent, which is helmed by an executive team of Helena natives, “looks forward to building on the strong Caruso family reputation,” the company said in a statement. Ascent CEO Loren Brown, a former executive with Mountain West Bank, said the company signed a purchase agreement to take ownership of First Security on Dec. 30, but is still raising capital to complete the move.
If completed, that deal would count as a first for Ascent, which was founded by Brown and 11 other board members in July 2015. Prominent Helena-area doctors, bankers and businessmen are all set to appear in the fledgling company’s boardroom. Even Rep. Chuck Hunter, the termlimited Montana House minority leader, holds a stake. The company, founded specifically to acquire First Security, isn’t necessarily planning to snap up any other banks any time soon. “At this point, we’re definitely growth-oriented, but there’s no firm plans to buy anything else,” Brown said. “We want to give First Security time to grow.”
IRS considers co-employment
Steve Bentley, senior vice president of finance for Avitus Group, has met with top IRS officials and attorneys from the Treasury Department to discuss the
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logistics of implementing the Small Business Efficient Act, or SBEA. The act is designed to create an IRS certification process for businesses like Avitus Group in the co-employment industry. Under the co-employment model, the co-employer organization, such as Avitus Group, is considered the employer of record as far as the government is concerned, and is responsible for payroll, employment taxes and other records. The business owner remains the supervising employer. The arrangement is designed to free up the business owner’s time to focus on growing the business rather than other administrative chores. The Small Business Efficiency Act became effective on Jan. 1, 2016, but it hasn’t been implemented yet as the IRS has requested more guidance on how to property certify co-employment businesses. “For the first time in the history of the IRS code,
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the IRS is being required to receive and review audited financial statements from taxpayers,” Bentley said. “The IRS requested guidance from industry leaders, and I’m happy I was able to help answer their questions and move the act closer to implementation.” The next step will be for representatives in the co-employment industry to fill out an application to be evaluated be approved as a certified co-employment business, Bentley said. “I feel this meeting was a critical step in the right direction as this act truly helps small businesses, and that is our goal.” The co-employment industry accounts for $81 billion in revenues each year, according to a coemployment industry trade association, of which Avitus Group is a member.
ers have a new way to raise capital — through equity crowdfunding — now overseen by the Montana Commissioner of Securities and Insurance Monica Lindeen. Many Montanans are already familiar with various online fundraising mechanisms, such as GoFundMe and Kickstarter. But to raise equity in a company – to sell its own stock to investors – businesses generally have had to undergo a lengthy process to gain approval of the securities. But that changed with the unanimous passage of House Bill 481 by the 2015 Montana Legislature. Now, with just a $50 filing fee and an application 10 days prior to any fundraising, Montana businesses can raise up to $1 million from Montana investors in a 12-month period. “Now Montana busiCrowdfunding nesses can raise equity starts in Montana directly from Montana Montana business own- investors,” Lindeen said.
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“With this new process, more and more Montana entrepreneurs can reach out directly to their customers and neighbors to help them realize their dreams, without costly and complicated regulations or going to the bank.” Investors must be Montana residents and can invest small amounts, or up to $10,000, although accredited investors can invest unlimited funds. The company must provide certain disclosures to the investors — and CSI provides a template at www.csimt. gov to help businesses get started. Since this law took effect, the Office of the Commissioner of Securities and Insurance has received and approved two applications from Montana businesses. They expect to see more, as Montana was rated the top state in the nation for start-up businesses by the Kauffman Index in 2014 and 2015.