The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

Question on how I am making my money in relationship to if I want to sell.

Here goes: I own a restaurant in Pittsburgh and have so for almost three years (the place has been there for 10 years. Last year I found out I could get paid back for the money I spent to buy the restaurant (and paid back for initial investments into the business) instead of taking a large salary. If the corporation owes me money then I figure I shouldn't have to pay large income taxes. For example, so far this year I cleared 6513 on my official salary. I also took back from the company 27800 in money it owes me for a total of 34313 (first five months of the year,CLEAR not gross) for a net return of 6862.60 per month. (Continued on first post in this thread.)

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., "www.mywebsite.com"

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (9)
No User Photo
Carson Grant Loan Company
Affordable Loans
Los Angeles County, CA

DO YOU NEED A LOAN TO START A BEFITTING NEW YEAR!!!!!!

Are you a business man or woman? Are you in any financial stress? Or do you
need money to start your own business?

Do you have a low credit score, and you will find it difficult to get loans
from local banks and other financial institutions? solution to your
financial problem is Dr. Carson Grant The Terms and Conditions are very simple
and considerate.You will never regret any thing in this loan transaction because i will
make you smile through out this transaction, because you where not born to be a loser

Email (carsongrantloanhome@gmail.com)

Our services include the following:

* Personal Loans
* Debt consolidation loans
* Possibility
* Business Loans
* Education Loans
* Mortgage
* Home Loans

We offer loans at 2% interest rate

We offer loans to people in need of financial assistant with a low interest
rate of 2%. In order to get a loan with this company, you can tell the exact amount of
loan you need and the time in which you can pay back the loan.

NOTE: You are required to email us on:(carsongrantloanhome@gmail.com)

Feb 11, 2017
No User Photo

Are you in need of loan?

We offer all kinds of loan at 3% interest rate; Business/Marketing loan, Project loan, Personal loan, Housing loan, Real Estate loan, Student loan, Car loan etc. We borrow loan amount of $5,000.00, $10,000.00, $50,000.00, $100,000.00, Minimum and up to a maximum amount of $500,000.00, $10,000,000.00, $15,000,000.00, $20,000,000.00 (twenty million dollars), our loan duration is usually a minimum of 1 year and maximum of 25 years to all categories of individuals, corporate bodies, business entities, small/medium and large scale entrepreneur etc at 3% interest rate annually.

If you are interested in our above offers, then let our loan experts assist you, get our loan form today.

Teams and condition apply.

WESTERN GLOBAL FINANCE HOME
phone: (980) 239-7539
email: info@westernglobalfnhome.com
web: http://www.westernglobalfnhome.com/

Jan 14, 2017
No User Photo

A few weeks later and here is the concensus: For purposes of getting a loan from a bank especially one backed by the SBA, the money CANNOT be used as a way for somebody to get a loan based on those numbers unles the down payment was very substantial. I have the money listed as a liability not as profit so I am out of luck. BUT---- the money is being shown that it is there so it should be able to be easy to show someone who has home equity, an investor, a 401k plan or just good old fashionesd cash that I have a good little cash cow-- especially with my "other benefits."

Special thanks to Don Barrick and Michelle Orr for help on this matter.

Jun 27, 2009
No User Photo
The BAF Group LLC
MD

John, let's talk at (410) 715-0700, or e-mail me at combroker@bafgroup.com.

Jun 3, 2009
No User Photo

I talked it over with the biggest broker in the area that does restaurants and she said it couldn't be considered as income for purposes. Her accountant told her. I would like to get a response from one of the lenders here if one could please respond.
Don, any other thoughts on the subject?

Jun 3, 2009
No User Photo
The BAF Group LLC
MD

Absolutely! YTD Financials will usually not include how the "Profits" are to be doled out or assigned in order to legally avoid paying Taxes, and your Accountant's statements would be the best source of testimoney. Normally, particularly in larger deals, the Buyer will ask for both the P&Ls and Balance Statements, in addition to the Tax Returns. This is because the P&Ls show a truer picture of Cash Flow than the Tax Returns, for that specific reason; and the Balance Sheets show where the money needs to go, as well as a record of historical indebtedness that supports your payments for Stockholders Loans and such.

Jun 1, 2009
No User Photo

Don, my accountant says that she has listed under "loan to shareholders" on my taxes. What about the money that I got this year where I don't have a tax return yet? Is my bank statements and someting from a CPA going to be enough proof of income?

Jun 1, 2009
No User Photo
The BAF Group LLC
MD

John, as long as you are getting the money paid in a verifiable manner - whether it is Salary, Loan Reimbursements, Profit Sharing - it should not matter to the Bank. The key is whether it is verifiable. All businesses are subject to some level of "adjusted Cash Flow" computations. Things that are commonly added back into that Cash Flow are "excess" Owner Income, Depreciation, Interest Expense, Charitable Donations and one-time expenditures. The only difficulty with Resraurants is normally found in the amount many Owners put in their pockets without claiming it on their Tax Returns, in any way.

There are definitely Banks that will not finance Restaurants, frequently because of the Price, in the face of a business that has claimed no Cash Flow on the Tax Returns. But there is a difference between HIDING money and legitimately moving the Expenses in a way that reduces Taxes Due. In your situation, if I have understood your position, I do not believe you should have a huge problem. If you want to discuss this further, call me.

May 31, 2009
No User Photo

Now I am now on pace to a verified NET of 82344 for 2009. The problem is that since I am not getting this money from a W-2 I fear that banks and other lenders won't finance this business for a buyer even though it is easily verifiable through my bank records and a back up from my CPA. Is financing available for this business or is my stubborn resolve not to pay income tax when I don't have to going to prevent me from selling, if I choose? There are other monetary benefits I receive that I am not including: cell phone reimbursement,etc. and "other" benefits.

May 31, 2009

Start a Discussion