Vol. 2 | ISSUE 18 | November 2018
Incorporating in Nevada; Resources for Small Businesses page4
Preparing Your 2018 Taxes Page 14
LETTER FROM THE
LETTER FROM THE
by Craig A. Ruark
by Chris O’Sullivn
With 2018 vanishing fast in the rear-view mirror, most small businesses are planning their journey into 2019. In addition to budgets and tax planning, some businesses may be looking at employee insurance options and keeping their employees healthy. This issue talks about options during the open enrollment period and the advantages of an employee flu vacation program.
We just came from the Governor’s Conference on Business 2018. What a great event! The conference set an attendance record of just over 800 attendees. Governor Sandoval wrapped up the event with his final Conference on Business invocation, and what a speech it was! The Governor received two standing ovations, one at his introduction and one at the conclusion of his speech. I have to say, his message was just as inspiring as his first seven years ago, reiterating that “if Nevada was a stock, he’d be buying right now”!
There are also, as a result of the recession and improved economy, a growing number of individuals that have left the corporate world to become freelance and independent contractors. However, without incorporating as a legal entity, they are walking a highwire without a safety net and subject to legal liabilities that could take away everything they own. Our feature article this month discusses the pros and cons of various incorporating strategies. Be sure to also check out our redesigned website where you will find tabs for resources and stories in Northern and Southern Nevada. This website is expanding with many additional exciting features, so be sure to check back once a month. If you missed any past issues of our magazine, you will find them online at https://issuu.com/ biznevada.
Our November edition gives some insight into exactly why Nevada is such a great place to incorporate and set up trusts of all kinds. Thank you to our many experts that helped with the rather complex content this month, and especially to our editor Craig, for doing double duty this month! I love doing business with locals, and I wanted to give a shout out to a couple of local companies whose businesses have been challenged by larger regional and national chains, yet through great personal customer service, and competitive pricing, have been able to survive and thrive! I needed some tires this month, after burning up the road these past two years, so rather than going to a big chain, I headed over to Hooten Tires on 4th street. Glen and his crew took good care of me, with a great price on excellent tires and great service, getting me in and out of there in less than 30 minutes! My partner Richard, had a similar great experience at Ray’s Tire Exchange, also on 4th street. So when you’re looking for tires at a great price, think of these local guys! They will take good care of you! Have a wonderful Thanksgiving, and a special shout out to all of the men and women who have served in our Armed Forces. Thank you for your service and for keeping our nation safe and strong!
Happy Veterans Day!
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INTHISISSUE VOL. 3 / ISSUE. 18 BizNEVADA PUBLISHING TEAM BizNevada Publishing Team PUBLISHERS: Richard Moore and Chris O’Sullivan GRAPHIC DESIGNER: Kaylyn Dazey EDITOR-IN- CHIEF: Craig Ruark PHOTOGRAPHER: Marcello Rostagni COVER PHOTO: Gunderson Law Firm (Marcello Rostagni) ADVERTISING Chris O’Sullivan firstname.lastname@example.org Richard Moore email@example.com FEEDBACK/IDEAS We welcome your feedback and ideas regarding BizNevada. Send a message to firstname.lastname@example.org © 2018 Carpe Diem International. All rights reserved.
Incorporating for Peace of Mind
The Art of Staying Healthy During Flu Season
Starting the New Year with a Well-Planned Estate
Nevada Health Link Begins Open Enrollment
Preparing your 2018 Taxes
Nevadan’s Score with Business Startup Advice from SCORE
Calendar of Events
How To Weather The Worst Of Storms In Your Business
Hitting The Reset Button On Your
Juvenile Diabetes Research Fund – Fighting to Cure Diabetes
How Business Owners Can Protect Their Employees from Workplace Violence
CONTACT US email@example.com www.biznevada.com
NEW COFFEE TALK FEATURE: Coffee Talk Introduction
EXPERT CONTRIBUTORS Jeffrey Benjamin Corporate Training Breakthrough Training BreakthroughTraining.com 775-337-1600
David Spillers Printing Digiprint DigiprintCorporation.com 775-786-4464
Tim Kirk Credit Card, Merchant Services PaidRight GetPaidRight.com 775-393-9669
Brent Forbush Certified Public Accountants Forbush & Associates ForbushAndAssociates.biz 775-337-6001
Raul Chacon Workers Compensation EMPLOYERS EMPLOYERS.com 775-327-2700
Golf Hidden Valley Country Club HVCCReno.com 775-857-4735
Brian D. Wheeler Financial Advisor Massachusetts Mutual Life Insurance Agency BoulderBasin.MassMutual.com 775-870-1552
KJ Smith Background Checks Employer Lynx EmployerLynx.com 775-883-3733
Mike Menath Insurance Menath Insurance MenathInsurance.com 775-831-3132
Ron Ford HVAC Sierra Air SierraAir.com 775-800-5500
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Incorporating for Peace of Mind by Craig A. Ruark The financial crisis in 2007-2008 marked the beginning of the end of the idea of full-time employment for many people and organizations, and the same idea (of full-time work) became less appealing to others. As a result, more than 30 percent of the workforce in the United States work as freelancers. Operating on a thin budget, freelancers often work from their homes, and operate as sole proprietorships under the radar of most state and municipal business, often ignoring mandatory licensing requirement unless required by clients. Their income earned is reported via 1099 on their personal income tax filing. This month we sat down with Austin Sweet, Esq. of Gunderson Law to discuss options for incorporation. Operating a sole proprietorship is the most basic form of business. A sole proprietorship requires no paperwork, no filing fees, and no annual maintenance, just print a few business cards 4 · ISSUE 18 · NOVEMBER 2018
and you are on your way. It is very inexpensive but offers few benefits; most importantly, sole proprietorships offers no distinction between you and your business and you would be personally on the hook for any liability arising out of your actions as a business owner. Forming an entity separates your personal assets from your business assets so that a lawsuit against the business doesn’t put the business owner’s personal assets at risk. The concept is called a “corporate veil,” and the strength depends on whether and how the business owner has managed the business. “Nevada has favorable tax laws and flexible corporate restrictions to encourage businessmen and women from across the world to form their businesses under our laws. Unfortunately, this flexibility leads to a wide range of options, which can be overwhelming for an entrepreneur trying to decide what type of business entity is right for them,” said Sweet.
Not all entity types offer liability protection. Those that do are generally more expensive to form and operate. Business owners are also required to comply with various rules and requirements to maintain that liability protection. However, the benefits of doing so often vastly outweigh these costs and administrative burdens. Legally, you can operate as a sole proprietor, a general partnership, a limited liability corporation (LLC), or a corporation. The terms “Inc.” and “Corp.” generally refer to a corporation. The identification of a “C-Corporation” or “S-Corporation” designates different tax structures for corporations; they do not identify different types of legal entities. Professional corporations and professional limited-liability companies are available for certain professions that are prohibited from conducting business through traditional corporate forms. For example, lawyers, accountants, doctors, and architects are some of the professions who may not seek the liability protection offered by an LLC or a corporation. “However, a ‘professional’ may not use a liability shield to protect himself from liability for professional negligence,” said Sweet. “ Professionals may still seek liability protection for the non-professional debts of the company, such as breaching a lease. Professional corporations and professional limited-liability companies allow this balance. Aside from this restriction on the liability shield, professional corporations and professional limited-liability companies operate much like standard corporations and LLCs.” A general partnership is essentially a multi-person sole proprietorship. It also requires no official paperwork and offers no liability protection. Like sole proprietorships, the primary benefit of a general partnership is that it is an inexpensive way to legally operate a business. “Be aware that general partnerships can be created unintentionally,” said Sweet. “If you have an ‘informal’ business venture with another person, such as co-owning a rental property, a court of law might consider that to be a legal general partnership. This can lead to problematic and unintended legal consequences results. If you have an ‘informal’ business relationship with another person, it is time to formalize your partnership into a legal entity and make sure you are protected.” BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 5
BUSINESS ENTITY SUMMARY TYPE OF ENTITY
LIMITED LIABILITY PROTECTION?
LEVEL OF GOV REQUIREMENTS
Taxed at personal tax rate
Taxed at personal tax rate
For limited partners only
General partners taxed at personal tax rate
Taxed at personal tax rate
Limited Liability Company
Must pay corporate taxes (but beware of double taxation dividends) Can choose how you want to be taxed
Contrary to popular belief, a corporation and an LLC provide the same level of limited liability protection for the business owners. The statutes, NRS 78 and 86, explicitly state that the individual officers of a corporation or members of an LLC are not personally liable for the debts or obligations of the business, providing the entities are managed properly.
• Corporations cost more to maintain in Nevada since the associated state business license fee increased by $300;
While a corporation can only be treated as an S-corporation or a C-corporation, an LLC has those choices, plus that of a disregarded entity (where one owner that is not recognized for tax purposes as an entity separate from its owner). If, for instance, the entity has one owner or if the only two owners are married, or as a partnership, which achieves the goal that originally brought LLCs into existence – partnership tax treatment plus limited liability for the owners.
Corporations have more stringent requirements than LLCs when it comes to maintaining corporate records. However, that doesn’t mean LLCs don’t have any requirements. Regardless of the type of entity you form, it’s crucial to keep that corporate veil in place by not allowing anything to pierce it. Anytime you take an action that might blur the line between your business and personal assets, be sure to ratify that action with a corporate resolution.
LLCs may be preferable for any of the following reasons:
Austin Sweet is an attorney at Gunderson Law Firm, practicing business law directed at helping business owners stay protected and prosper. He can be contacted at (775) 829-1222 or firstname.lastname@example.org
LLCs tend to be lower maintenance, as they don’t typically require bylaws, a board of directors, or advance written notice of company meetings (though we do encourage
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LLC members to hold at least annual meetings);
• LLCs have more tax flexibility; • LLCs can be taxed as disregarded entities.
The Art of Staying Healthy During Flu Season Special to bizNEVADA Keeping your staff healthy ensures they’re able to keep your customers happy and healthy, which translates to higher profits in the long run. And one of the easiest ways to accomplish this is to encourage them to get vaccinated against the flu, which ensures they’re able to work and provide for their families, while also protecting your customers from potentially contracting the influenza virus. Chelsey Lundin is the manager of human resources and security for the Nevada Museum of Art, which provides a flu vaccination clinic for its employees every fall. “We interact with so many people, including busloads of children, so it’s critical we do what we can to keep everyone healthy,” she says.
If last year is any indication, you don’t want to take a chance with this potentially deadly disease. According to the Centers for Disease Control (CDC), the 2017-2018 flu season wasn't just bad; it was the worst we've seen in 40 years. An estimated 900,000 were hospitalized, due to something that can be prevented with a flu vaccine. Of those, 80,000 Americans died of flu and its complications last winter. That's almost double the number of people estimated to die the same year in car crashes. In addition to the human cost, the CDC reports that up to 111 million workdays are lost every year because of the flu (influenza) at an estimated $7 billion per year in sick days and lost productivity. BIZ NEVADA MAGAZINE · WWW.BIZNEVADA . 7
Work Habits to Reduce the Risk of Flu Businesses can take steps to cut these costs and keep workplaces healthier: •
Get your flu shot. Businesses can host vaccination clinics or reimburse employees for the time and money it costs them to get the flu vaccine.
If you’re sick, stay at home. Flexible leave policies encourage sick employees to stay at home.
Keep it clean. Disinfect frequently touched objects. Hotspots include doorknobs, railings, countertops, telephones, keyboards, faucets and vending machines.
Stock up. Have supplies such as tissues, soap, alcohol-based hand sanitizers, paper towels and disinfecting wipes readily available in common areas.
Work up a lather. Wash hands frequently and thoroughly with soap and water for 20 to 30 seconds. If using hand sanitizer, use one with at least 60 percent alcohol.
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Lundin says the Museum is proactive in many ways when it comes to keeping its staff healthy. “We have healthy snacks available for them, and we encourage them to stay home when they’re sick,” she says. “Full-time employees have a generous sick leave policy. And we let part-time employees make up hours or figure out a way they can work from home.” CDC recommends that those who do contract the flu stay home for at least 24 hours after their fever is gone, except to get medical care or other necessities. For those who are pregnant, seniors, or are immune-compromised, it is advisable to seek medical attention. For people at high risk of serious flu complications, treatment with antiviral drugs can mean the difference between milder or more serious illness, possibly resulting in a hospital stay. Nevada has many options for free or low-cost flu vaccinations, many of which can be found at immunizenevada.org/flu/flu-vaccine-locations, which allows Nevadans to input their zip code, generating a list of locations nearby offering the flu vaccine. Immunize Nevada is widely recognized as Nevada’s trusted resource for immunizations and community health for all ages by fostering education and statewide collaboration. For more information, visit www. immunizenevada.org.
Starting the New Year with a Well-Planned Estate
By Dara J. Goldsmith, Esq. – Special to bizNEVADA
The catchphrase “it is all good” summarizes the advantages of estate planning. There is no downside to setting up an estate plan. Estate plans generally consist of a will, powers of attorney for health care and financial matters, and a living will. Basic estate planning allows an individual to decide who will make decisions when the individual can no longer make decisions, the types of decisions to be made, who will handle the burial/cremation, manage the settlement of the estate (garnering assets, paying creditors and getting the estate ready to be distributed), and ultimately who will receive the assets. A misconception that many people have is that ‘if I make a will, I will avoid probate.’ Actually, nothing is further from
the truth, ‘If all you have is a will, you will go through probate.’ Now probate is not as awful as it is made out to be, and for some, it is a simple and relatively painless process. However, for others, more advanced estate planning would have eased the financial or emotional burden on the family. Oftentimes a client will come into our office and state emphatically that a trust is needed. The first question we ask is “why?” Why does the client believe that a trust is needed. Sometimes the client is correct, while other times the trust is not necessary, and a will may be sufficient to transfer the assets upon passing. There are a number of will substitutes; these include holding assets in a joint tenancy,
designating a pay on death beneficiary on an investment or bank account, or naming a deed upon death beneficiary for real property. Each of these designations has advantages and disadvantages which should be considered or discussed with legal counsel before using one of these alternatives. The advantages of these substitutes are that they are low cost and relatively simple to set up. The disadvantages include, but are not limited to the risk of loss, loss of a stepped-up basis (tax issue), and loss of control. Often, the disadvantages outweigh the advantages. The use of wills and/or will substitutes to craft an estate plan is akin to buying a paint-bynumber painting, the creativity options are somewhat limited. Whereas, trusts offer infinite
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multi-millionaire obstetrician who is worth far more than her malpractice insurance will cover. She may be a candidate for an irrevocable trust for asset protection reasons. Nevada allows the self-settling of such trusts, not all states allow for the same. Due to her wealth, she may be willing to give up control of certain assets to ensure that the assets are still there for her benefit in the future.
solutions to the client’s objectives. A trust is like a blank canvas waiting for the artist’s brush and paints to awaken the canvas. The attorney/artist is able to craft a trust that is individualized to the client’s wants and needs and is not limited to “staying between the lines.” Moreover, unlike a will which is public record, a trust is a private document. Many clients like the idea that the public will not know what their beneficiaries receive. Some trusts are complex, and others are relatively simple. In basic terms, there are two types of trusts, inter-vivos trusts, and testamentary trusts. Testamentary trusts are created by a will. The biggest disadvantage of a testamentary trust is that the estate assets go through probate and then the trust is created. Probate avoidance is the main reason many select a trust, so 99% of trusts drafted are inter-vivos trusts. An inter-vivos trust is created during the lifetime of the individual[s] and should be funded during life so as to avoid probate. If the assets are not properly transferred to the trust, then a probate proceeding will be necessary to fund the trust. Inter-vivos trusts may be 10 · ISSUE 18 · NOVEMBER 2018
revocable or irrevocable. Revocable inter-vivos trusts are the most commonly created trust and serve as the cornerstone when creating an estate plan. Revocable inter-vivos trusts provide the trustor (the person or persons making the trust) the ultimate flexibility. The Trustor retains the right to modify, amend, or revoke the trust during his or her lifetime. This type of trust provides maximum flexibility, but it does not provide any asset protection since the trustor retains control of the assets. It also provides a mechanism to avoid guardianship by naming a successor Trustee in the event the Trustor can no longer act as Trustee. Upon the Trustor’s death, the assets may remain in trust for the beneficiaries’ use, providing the beneficiaries with asset protection. Alternatively, the Trustor may want some or all of the assets distributed outright to the beneficiaries upon the Trustor’s death or upon reaching certain ages or other life milestones. The options are endless. Sometimes clients need asset protection and cannot be adequately insured to cover the risk in their chosen career field or otherwise. Imagine the
Other clients may be disabled or have disabled children. Planning for a disabled child or beneficiary is more complicated and requires the use of first party or thirdparty special needs trusts to ensure that the disabled person retains benefits without losing the assets to pay medical bills during life. The most important piece of creating an effective estate plan is for the client to assess what the planning objectives are and then to work with an attorney to create a solution that achieves those objectives. Once the estate plan is in place, the most important part of maintaining an effective estate plan is to review and assess the plan on an annual basis or when a life-changing event occurs. Don’t just file your estate plan away. Things change. People change. Mark your calendar for an annual review. Your loved ones will be glad that you did. Dara Goldsmith has been practicing law in Nevada for more than 27 years. Her law practice is primarily focused in the areas of trusts and estates. She drafts estate plans, serves as legal counsel to personal representatives and beneficiaries in administrations, and handles litigation in those areas. To learn more information about Dara and her law firm, Goldsmith & Guymon, P.C., please visit www.goldguylaw.com and www.goldguytrusts.com.
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Nevada Health Link Begins Open Enrollment Special to bizNEVADA Nevada Health Link is the state's health insurance marketplace for Exchange-based health insurance plans. Starting November 1, consumers can enroll in Qualified Health Plans for 2019. Continuing until Dec. 15, the 45day enrollment period is an opportunity for uninsured and underinsured Nevadans to purchase budgetappropriate, quality health insurance. Consumers are encouraged to meet with a licensed enrollment professional who can help them navigate the enrollment process and assist in determining their eligibility for federal tax credits and cost sharing reduction subsidies, which can aid them with health insurance costs, or monthly premiums. Residents who are currently insured with Exchange-based health plans are also encouraged to shop for new plans that might better fit their circumstances and their familiesâ€™ needs, which could result in a decrease in average monthly insurance costs. Nevada residents can make an in-person appointment with an enrollment professional near them by using Nevada Health Link's in-person assistance lookup tool. For more information about health insurance offered through Nevada Health Link, call 1-855-768-5465, visit www. nevadahealthlink.com.
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Preparing your 2018 Taxes What you should know about the changes in the Tax Law By Brent Forbush – Special to bizNEVADA The Tax Cuts and Jobs Act (TCJA) contains a treasure trove of tax breaks for businesses. Here are the most important changes in the new law that will affect businesses and their owners.
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NEW 21% CORPORATE TAX RATE Under pre-TCJA law, C corporations paid graduated federal income tax rates ranging from 15% to 35%. For tax years beginning in 2018, the TCJA establishes a flat 21% corporate rate.
REDUCED CORPORATE DIVIDENDS DEDUCTION Under pre-TCJA law, C corporations that received dividends from other corporations were entitled to partially deduct those dividends at either 70% or 80% dependent upon ownership percentage of the other corporation. For tax years beginning in 2018, the TCJA reduces the 80% deduction to 65% and the 70% deduction to 50%. CORPORATE ALTERNATIVE MINIMUM TAX REPEALED
Before the TCJA, the corporate alternative minimum
tax (AMT) was imposed at a 20% rate. For tax years beginning in 2018, the new law repeals the corporate AMT. For corporations that paid the corporate AMT in earlier years, an AMT credit was allowed under prior law. The new law allows corporations to fully use their AMT credit carryovers in their 2018–2021 tax years. NEW DEDUCTION FOR PASS-THROUGH BUSINESSES For tax years beginning in 2018, the TCJA establishes a new deduction based on a noncorporate owner’s qualified business income (QBI). This new tax break is available to individuals, estates and trusts that own interests in pass-through business entities. The deduction generally equals 20% of QBI, subject to restrictions that can apply at higher income levels. QBI is generally defined as the net amount of qualified items of income, gain, deduction and loss from any qualified business of the noncorporate owner. QBI doesn’t include certain investment items, reasonable compensation paid to an owner for services rendered to the business or any guaranteed payments to a partner or LLC member treated as a partner for services rendered to the partnership or LLC. The QBI deduction isn’t allowed in calculating the noncorporate owner’s adjusted gross income (AGI), but it reduces taxable income. •
W-2 wage limitation. The QBI deduction generally can’t exceed the greater of the owner’s share of:
50% of the amount of W-2 wages paid to employees by the qualified business during the tax year, or the sum of 25% of W-2 wages plus 2.5% of the cost of qualified property.
Qualified property is the depreciable tangible property (including real estate) owned by a qualified business as of year-end and used by the business at any point during the tax year for the production of qualified business income. This limitation applies once taxable income exceeds $157,500 ($315,000 for joint filers). BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 15
Specified Trade or Service business limitation. Finally, the QBI deduction generally isn’t available for income from certain specified service businesses. Under an exception, the service business limitation doesn’t apply until an individual owner’s taxable income exceeds $157,500 ($315,000 for joint filers). Above those income levels, the service business limitation is phased in over a $50,000 phase-in range ($100,000 range for joint filers). The W-2 wage limitation and the service business limitation don’t apply as long as your taxable income is under the applicable threshold. In that case, you should qualify for the full 20% QBI deduction.
OTHER CHANGES Here are some of the other business-related changes in the TCJA: •
For business net operating losses (NOLs) that arise in tax years ending after December 31, 2017, the maximum amount of taxable income that can be offset with NOL deductions is 80%. In addition, NOLs incurred in those years can no longer be carried back to an earlier tax year (except for certain farming losses). Affected NOLs can be carried forward indefinitely.
More generous business asset expensing and depreciation tax breaks are available. The maximum Section 179 deduction increases to $1 million, and the phaseout threshold amount is increased to $2.5 million along with increased bonus depreciation.
Domestic production activities deduction is eliminated for tax years beginning after December 31, 2017.
The eligibility rules to use the more-flexible cash method of accounting are liberalized to make them available to many more medium-sized businesses. Also, eligible businesses are excused from the chore of doing inventory accounting for tax purposes.
The Section 1031 rules that allow tax-deferred exchanges of appreciated like-kind property is allowed only for real estate for exchanges completed after December 31, 2017.
Faster depreciation is allowed for eligible farming assets.
Compensation deductions for amounts paid to principal executive officers generally cannot exceed $1 million per year.
Specified R&D expenses must be capitalized and amortized over five years, or 15 years if the R&D is conducted outside the United States instead of being deducted currently.
NEW LIMITS ON BUSINESS INTEREST DEDUCTIONS Under the TCJA, affected corporate and noncorporate businesses generally can’t deduct interest expenses in excess of 30% of “adjusted taxable income,” starting with tax years in 2018. Business interest expense that’s disallowed under this limitation is treated as business interest arising in the following taxable year. Amounts that cannot be deducted in the current year can generally be carried forward indefinitely. There are some exceptions to this limit for business with gross receipts average of $25 million or less for the three previous tax years, real property businesses that elect to use a slower depreciation method for their real property, and interest expense from dealer floor plan financing. Reduced or eliminated employer deductions for business-related meals and entertainment Under the new law, for amounts paid or incurred after December 31, 2017, deductions for businessrelated entertainment expenses are disallowed. Meal expenses incurred while traveling on business are still 50% deductible, but the 50% disallowance rule will now also apply to meals provided via an on-premises cafeteria or otherwise on the employer’s premises for the convenience of the employer. After 2025, the cost of meals provided through an on-premises cafeteria or otherwise on the employer’s premises will be nondeductible. CHANGES TO SOME EMPLOYEE FRINGE BENEFITS The new law disallows employer deductions for the cost of providing commuting transportation (unless for safety) and eliminates other qualified employee transportation fringe benefits.
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The TCJA is the largest overhaul of the tax code in more than 30 years, and we’ve covered only the highlights of the business-related tax provisions here. Brent Forbush is the audit and accounting manager at Forbush & Associates. He holds a Master of Business Administration with an emphasis in accounting and is a certified public accountant. For questions about information in this article call 775-337-6001.
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Nevadan’s Score With Business Startup Advice From SCORE. –Special to bizNEVADA
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Originally an acronym for Service Corps of Retired Executives, SCORE was founded in 1964 to provide free and confidential business mentoring services to prospective and established small business owners in the United States. Nationwide, SCORE has more than 13,000 active and retired business professional who volunteer their time and expertise. In 2016, SCORE mentors helped start 54,072 new businesses and create 78,691 new jobs. If you want to start your own business in Nevada, your first stop should be the SCORE office in Las Vegas or in Reno. SCORE in Nevada is part of the Small Business Roundtable, sponsored by the Nevada Department of Business and Industry. The Roundtable includes more than twenty-five resource partners who can help small businesses in the state for every aspect of their enterprise. The SCORE partnerships include various chambers of commerce, business councils, banks, and is affiliated with the Small Business Administration. Experienced volunteers also lead low cost seminars and workshops covering everything from starting a business, creating a business plan, sources of funding, licensing, operations and financial management, understanding marketing, basic bookkeeping, and how to successfully recrute or contract with employees. Many of SCOR’s volunteers have owned their own business or have been senior managers and executives with years of experience. In most cases, you can find a mentor who has the specific background in the business you are investigating. And best of all, the one-on-one mentoring that they provide is free, for as long as you want it. In addition to the local support, SCORE has a national network of experts who can help you by telephone, email, or SKYPE if you cannot find a local match for your needs. The program for veterans includes no cost for the seminars and a “Boots to Business” workshop for those about to leave the service. If you would like to know more about the services SCORE offers, Go to https://northernnevada.score.org or call 844-232-7227. You can also visit the SCORE office at 450 Sinclair Street, Reno, NV 89501.
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November/Decem RENO+SPARKS CHAMBER
NOVEMBER 16 5:30 PM 2018 TwentyUnder40 Awards Gala Renaissance Reno Downtown Hotel One South Lake Street, Reno, Nevada 89501 NOVEMBER 17 - 18 7:00 PM Reno Orchestra NOVEMBER 27 7:30 AM Coffee & Commerce, The Atlantis, 3800 S Virginia St Reno, NV 89509 NOVEMBER 29 4:00 PM Ribbon Cutting No Limit Sports Lab, LLC 360 Western Rd Unit #1 Reno, NV 89506 DECEMBER 12 7:30 AM Holiday Reception for Members The Atlantis, 3800 S Virginia St Reno, NV 89509 NOVEMBER 30 8:30 AM NEW MEMBER ORIENTATION 449 South Virginia St. #300
DECEMBER 25, 2018 Coffee & Commerce, The Atlantis, 3800 S Virginia St Reno, NV 89509
NOVEMBER 14 3:00 PM NCET Tech Café Rounds Bakery NOVEMBER 14 5:30 PM Tech Wednesday UNR School of Medicine NOVEMBER 28 11:00 AM 3rd Annual State of Digital Marketing The Atlantis DECEMBER 5 11:00 AM Karen Gedney Dealing with Negative Workplaces and People Atlantis Casino Resort Spa DECEMBER 12 5:30 PM Tech Wednesday Seven Troughs Distillery DECEMBER 19 3:00 PM NCET Tech Café Rounds Bakery
For more complete and up-to-date calendar information, visit biznevada.com/events-calendar
mber Calendar of Events WIN November 30 7-9 AM WIN Breakfast
TUESDAY 7AM Mimi’s Café BizClub Zero Swill Coffee Napa Sonoma South WEDNESDAY 7AM Napa Sonoma South Meadowood Courtyard
Colette Carlson, ‘Many Communicate. Few Connect.’ Atlantis Resort & Casino
FRIDAY NOVEMBER 30 5:30 PM 2018 Silver & Snowflakes Holiday Tree Lighting Event
CARSON VALLEY CHAMBER DECEMBER 12
WEDNESDAY NOON Wildcreek Golf Course Famous Dave’s Reno/Sparks Association of Realtors THURSDAY 7AM Swill Coffee Lakeridge 19th Hole The Plaza Hotel, Carson City Mimi’s Café Napa Sonoma South THURSDAY 11:30AM Famous Dave’s
NOVEMBER 13 5:00 PM - 7:00 PM Reno Breakthrough Mixer Cantina Los Tres Hombres, Victorian Square Sparks
Petroleum Card Services, 2243 Park Place Suite C Minden DECEMBER 14
7:30 AM New Member Orientation Carson Valley Chamber of Commerce ONE MILLION CUPS Every Wednesday 9AM The Innevation Center
BREAKTHROUGH TRAINING NOVEMBER 28-29 Breakthrough Leadership Training w/ Jeffrey Benjamin Call for Reservation 775-337-1600
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HOW TO WEATHER THE WORST OF STORMS IN YOUR BUSINESS by Scott Menath – Special to bizNEVADA
Many people watched the news with horror as Hurricane Michael swept through Florida and Georgia last month. How could anyone defend themselves against this threat? The impact of the hurricane’s sustained 155 miles per hour winds was almost complete in its devastation of Mexico Beach, a shoreline community of the Florida panhandle. Scattered like ruins were fragments of a once thriving neighborhood and nearly nothing was spared.
That is, with the exception of what many news reports calling the “Miracle Home.” The spacious white house owned by Dr. Lebron Lackey and his uncle, Russell King, looked impossibly untouched while surrounded by shattered debris in all direction. As it turns out, the survival of the home wasn’t a miracle at all, but rather was the result of foresight and an investment in being prepared for the worst. Dr. Lackey shared that it only cost an additional 1520% in materials and building costs to construct a home that was designed to withstand 250 mile-perhour winds.
The lesson is obvious for business owners in today’s thriving corporate climate. Yes, these are good times being experienced by most in Nevada, but is your organization prepared for when the next big storm hits? For many businesses, the next tempest may actually be caused by Mother Nature, be it of strong winds, or a raging firestorm. Many buildings in flood zones, high waters are always a risk. But, there are many other threats to the health and wellness of a business. These can include embezzlement, lawsuits, and workplace injuries. And, while many could properly argue that the #MeToo movement of reporting workplace sexual abuses is advancing gender equality and safety, it’s also exposing corporations to radically elevated legal risks to the leadership at all levels of an organization. Sure, things may be going great for your business today. But, are you as prepared as you can be for the next great storm. Have you built your business to withstand 250 mile-per-hour winds? Sadly, as is the case in Florida and Georgia, and also with the devastating fires last year in Santa Rosa, California, the tragedy extended well beyond the natural disasters. Because it was the day after when many of the victims discovered they were insufficiently insured. Many in Santa Rosa had coverage for their homes, based on a valuation that was ten and twenty years out of date. Few of those homeowners could afford to rebuild their houses with the settlement they received. BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 23
Almost all businesses are insured. But, all too many of them are grossly under-insured, leaving them in a position of great vulnerability. Many had employed a “set and forget” approach where they streamlined their insurance coverage many years ago when the local economy was in a tailspin. Not only did they make their coverage “lean and mean,” but they based it on valuation that only made sense in a crashed economy, when contractors were gasping for air and would work on the cheap. In today’s super-heated climate, if a building you own takes a big hit, you are going to be shocked to know how expensive it is to rebuild in a market where labor costs and materials have skyrocketed. Undervaluation isn’t just an issue when it comes to your building. Many businesses have increased their inventory and equipment to record levels, but haven’t made the insurance adjustment to ensure they are covered if something bad should happen. In the event of a legal storm during this increasingly litigious business environment, are you confident you have the coverage you need to keep you afloat? Many business owners have woefully inadequate coverage for these types of all-too-frequent storms. Ten years ago, businesses in Nevada were forced to take on much of the risk themselves just to preserve their thin margins. Now as business is booming, there is no better time to weatherproof your investment of a lifetime. Because, as we all know, the storms will come again at some point. How do you know if you’ve got 50 mile-per-hour or 250 mile-per-hour coverage? It’s simple. Meet with the right insurance professional and get a thorough review of your policy. Don’t wait until the storm sirens ring. It’s when the skies are blue, and the sun is shining that you should make sure you are properly prepared. Pick up the phone, and take the first step to get coverage strategy reviewed. It may just be the most important business call you’ll make this year.
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HITTING THE RESET BUTTON ON YOUR WORKPLACE SECURITY by K.J. Smith, Special to bizNEVADA Stripped from the headlines on a daily basis are stories of workplace violence. Things have gotten so bad with enraged employees that active shooter training for corporations is becoming as common as customer service workshops. Although these events draw the biggest attention, there is an older and more prevalent crime wave crashing through small, medium, and large businesses. That crime is— employee theft. There are some studies which reveal as many as 70 percent of employees privately admit to having stolen from an employer at some point in their lifetime. In many cases, this may be as innocuous as pocketing some office supplies or adding a few extra drinks for friends or family on the company’s credit card. But, sadly, there is a growing caseload of companies having to file for bankruptcy as a result of
embezzlement. When you are a small firm with a million dollars in annual revenues, even an internal theft in the tens of thousands is enough to mortally wound a company. So how do you go about protecting yourself? Is it possible? Or are we defenseless against the rising tides of human frailty? As a partner of more than 20 years in a company providing background screening and investigation services, I can honestly tell you there is no perfect solution. There are no guarantees. However; you do have the ability to tremendously reduce your risk with a thorough and professionally managed background screening program. In fact, having one of these programs is as critical to the viability and survival of your company as is having anti-virus software on your company computers and servers. Unfortunately, so few companies have adequate programs in place. Worse, many of them think they do, BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 25
and yet their screening plans are woefully inadequate. The biggest issue is that many companies are relying on dirt cheap national screening programs that, unfortunately (and unknown to their users), don’t have access to many Nevada court records! This means they are often misleading and useless when it comes to protecting your employees. There is another major problem with corporate background screening programs which flies under the radar of most business owners, CEO’s and even human resources experts. That problem is that people change, and the longer your employees are with you, the more they change. Hopefully for the better. But, sometimes this is not the case, and their situations at home are creating extraordinary pressures on their performance and trustworthiness at the office. They have health challenges that create crushing debt. Or gambling or substance abuse problems that produce the same negative results.
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Then there are family crises which can cause tremendous emotional damage.
their entire team to ensure there aren’t worms getting into your once shining apples.
Sometimes, it’s merely a case of someone who loved working for you, and now they don’t. And because of this, they aren’t going to tell you they have lost their driving license as a result of a DUI and shouldn’t be making those quick runs to your clients’ offices anymore.
The simple solution is to do what we call, “hitting the reset button” on your company’s safety and security. What we offer to our clients is a program where we will perform a comprehensive screening of their entire existing workforce. Then we manage screening for new hires, as well as providing annual screening for everyone in your company.
In other words, that wonderful, dear, trusted employee of so many years, can no longer be trusted. They’ve become unhinged, and no one at the office has a clue they have reached a tipping point that could endanger your other employees or cripple your company’s fiscal health. What this means is if you’re only screening new hires, your “antivirus software” isn’t providing full protection. That’s like installing it on new computers, but not putting it on your servers or all of the computers on the network. The reality is many companies do pre-employment background screening, which will keep you from hiring a bad apple. But, all too few do an annual screening of
That is all of your computers and all of your servers. Much, much more secure and safe. This type of program may require an official change in your company policy to properly administer the service, but whatever effort it will take will be a small price to pay for the tremendous confidence boost you’ll get in having a better idea of who exactly is working for you. And, your team will thank you for the investment in ensuring a safe,
secure and highly productive workplace.
After all, a safe workplace is the number one most important employee benefit you can possibly offer. And it’s the one benefit, your team most deserves.
international affiliates are dedicated to advocacy, community engagement and our vision of a world without T1D. Locally, in 1996, the first JDRF Northern Nevada Walk was held on the campus of UNR. That year the Walk drew 500 people and raised $36,000. With that promising start, JDRF elected its first Northern Nevada Board of Directors. Two years later, JDRF held its first Gala with over 300 guests raising over $60,000. With the continued and generous support from our community, JDRF Northern Nevada has raised over $15 million for type 1 diabetes research.
JUVENILE DIABETES RESEARCH FUND – FIGHTING TO CURE DIABETES
In addition to funding research, JDRF also has an extensive Outreach program distributing our “Bag of Hope,” a comprehensive collection of educational and support resources for families of newly diagnosed children with type 1 diabetes. Our Outreach efforts extend to the Lake Tahoe and Elko communities, as well as the greater Reno-Carson-Susanville areas. For more information about JDRF or how to get involved, please visit https://urldefense.proofpoint.com
–Special to bizNEVADA
JDRF is the leading global organization funding type 1 diabetes (T1D) research. Our mission is to accelerate life-changing breakthroughs to cure, prevent and treat T1D and its complications. To accomplish this, JDRF has invested more than $2.2 billion in research funding since our inception. We are an organization built on a grassroots model of people connecting in their local communities, collaborating regionally for efficiency and broader fundraising impact, and uniting on a national stage to pool resources, passion, and energy. We collaborate with academic institutions, policymakers, and corporate and industry partners to develop and deliver a pipeline of innovative therapies to people living with T1D. Our staff and volunteers throughout the United States and our six
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HOW BUSINESS OWNERS CAN PROTECT THEIR EMPLOYEES FROM WORKPLACE VIOLENCE By Raul Chacon–Special to bizNEVADA Each year, 2 million incidents of workplace violence are reported, ranging from verbal abuse to physical assaults and even homicide. Twenty-two percent of reported fatal workplace injuries in Nevada in 2016 were caused by workplace violence. Acts of violence in the workplace can occur anywhere and at any time, and all businesses can be affected. However, certain types of businesses, such as bars, restaurants, nightclubs, convenience stores, retailers, and hotels have a higher risk. These types of businesses often have more cash on hand, serve alcohol, are open later hours, or may operate in higher crime neighborhoods. There are four steps that every Nevada business owner should take to reduce the likelihood of workplace violence, prepare employees to deescalate potentially violent situations, and help employees know how to respond appropriately if an act of violence does occur. 28 · ISSUE 18 · NOVEMBER 2018
INVEST IN A SAFE WORK ENVIRONMENT When it comes to deterring potentially violent situations in the workplace, practical investments can make a big difference. For instance, make sure locks are installed on all doors and windows, and that the locks function properly. Employees also need to ensure they don’t leave access entry ways unlocked or ajar as this jeopardizes the integrity of the building. Make sure parking lots, nearby alleys and areas around dumpsters are well lit at night. Install surveillance cameras and post signs clearly warning customers and employees that their actions are being recorded. Invest in an alarm system and panic buttons that enable employees to call police discreetly when they feel physically threatened and need help immediately. ALTER BUSINESS ROUTINES Slightly adjusting business routines can also drastically reduce the chance of a violent situation occurring. This may include staffing at least two
workers per shift, especially in businesses that are open late at night, including bars, restaurants and convenience stores. These and other retail businesses should also limit the amount of cash they keep on hand. Don’t fall into a predictable pattern for cash drops at the business’ bank. Deposit cash frequently, but on different days of the week and at different times of the day. This enables business owners to remove varying amounts of cash from the premises, which makes them a less appealing target for would-be robbers. PROVIDE VIOLENCE PREVENTION TRAINING All employees should receive violence-prevention training so they learn effective de-escalation techniques and what to do in the event of a robbery, assault or other act of violence in the workplace. This type of training should be done at least once a year and conducted by a local safety or law enforcement official. OSHA provides resources that can help business owners find a reputable professional that provides violence prevention training. DEVELOP AN EMERGENCY ACTION PLAN As important as it is to prevent acts of violence in the workplace, it’s just as important for employees to know how to respond if one does happen. Provide CPR and first-aid training so employees can attend to any injured colleagues or customers until first-responders are able to arrive. Make sure employees know which authorities to contact for help, how to reach them quickly, and the best way to direct them to the premises. Beyond these basics, make sure employees are prepared to recall and document what happened, as they may likely be questioned by police or asked to provide official statements for use in future court proceedings. These statements not only help authorities’ investigations, but they can also help business owners and managers improve their safety policies and procedures for the future.
While workplace violence prevention may not be at the top of a small business owner’s daily to-do list, it needs to be considered. Small adjustments to business practices and training programs can make all the difference in deterring workplace violence and keeping employees and customers safe. OSHA, Workplace Violence, Retrieved on July 26, 2018 from https://www.osha.gov/SLTC/ workplaceviolence/ The Bureau of Labor Statistics, Fatal Work Injuries in Nevada 2016, Retrieved on July 26 from https:// www.bls.gov/regions/west/news-release/ fatalworkinjuries_nevada.htm OSHA, Workplace Violence, Retrieved on July 26, 2018 from https://www.osha.gov/SLTC/ workplaceviolence/ The information provided is intended to provide a general overview. This information is not legal advice and should not be relied on as such. EMPLOYERS® makes no warranties as to the accuracy, adequacy, or completeness of the information provided, and will not be responsible for any actions taken based on the information contained herein. If you have legal questions or need legal advice, please consult an attorney. Raul Chacon is Western Region Loss Control Manager for EMPLOYERS, America’s small business insurance specialist, which offers workers’ compensation insurance and services through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, and Employers Assurance Company. Not all insurers do business in all jurisdictions. EMPLOYERS and America’s small business insurance specialist are registered trademarks of Employers Insurance Company of Nevada.
BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 29
Coffee Talk at S
By Richard Moore As many of you know, we added a section called Coffee Talk. Coffee Talk can be found on the inside back cover and the facing page, what many would consider a prime location. So, what is Coffee Talk all about, simply stated it is an introduction to the section sponsors through a brief discussion/interview conducted at Swill Coffee and Wine. While there are many topics, the primary focus is each entities industry, its best practices and their concerns for the industry and the clients they serve. 30 · ISSUE 18 · NOVEMBER 2018
Over the next three months you, our readers, will be able to interact with each one of the sponsors by activating their ad with the bizNV AR app. Whether you have an Android or IOS smartphone, simply open the camera (don’t do anything else), point it at this image and follow the instructions; within 30 seconds to a minute, you will have the bizNV app which activates several of the ads in this section. Each month we will give you pointers on the use of the App and any new features developed.
If you have any questions, please feel free to reach out to Chris O’Sullivan or Richard Moore, you can find our contact information in the table of contents section. Final thought, this piece of paper that you are looking at is now a portal to the digital world, the real news here, NO URL’s, no search engines, just point, learn and enjoy.
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