A recent study of companies’ payroll tax liabilities found that some smaller businesses are being caught off guard by the massive amounts of money they owe. Startups in particular may be paying too much because their profits can fluctuate, while larger corporations have more stable revenues.
“A failed business story” is a term that is used to describe the stories of businesses that have failed. This article will discuss some of these stories and how they were able to succeed in the end. Read more in detail here: failed business stories.
One of our clients requested me to be president of his fledgling robotics business while I was working for Larry Wells at Creative Strategies International many years ago. For a very low price. For a portion of the company’s equity and a seat on the board of directors.
I was ecstatic. And I was a kid. And the firm was one of those great genius firms that couldn’t go beyond the founder’s technological prowess. He was always fiddling, modifying, and never really completing a project. He made a living doing service contracts and bespoke work for semiconductor companies.
Larry, who subsequently went on to become a venture investor, was a genuine visionary. He recommended that I accept the position part-time in the mornings and stay with Creative Strategies for a few months. He promised to assist me in making it work by providing me with more flexibility.
He said, “Work with them for a time and see how it goes.” You’re a good guy.
The books were never shown to me. Every time I inquired, my founding entrepreneur buddy was upset. “Don’t worry, we’re OK, we’re making it,” he would tell me. Meanwhile, he continued to believe, unknown to me, that he could save money on payroll taxes and make up the difference when he struck it rich.
He never had a major break. The business failed. I returned to Creative Strategies, thankful for Larry’s insight. A gunshot was deflected.
The IRS subpoenaed me for a tax case a year later. I learned that the IRS was suing my buddy, the creator, for $90,000 in unpaid payroll taxes. Despite the fact that the business had gone bankrupt, he was still personally responsible since he signed the cheques.
As a result, I was forced to testify. Except since the founder made it obvious that he had been lying to us, the IRS might have held me and the other directors responsible as well–another bullet dodged. And I’m guessing they looked into the accounting and who signed cheques before deciding against it.
Excellent lessons. Larry did me a favor, and I have reason to think that I returned the favor by remaining loyal to his business. And my buddy tells us all to never, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever
The “failed business ideas” is a scary true story about startups and payroll taxes. The author tells the story of how he was able to save his company, but not without some setbacks.
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