Business Growth

Patti ONeill and Gale Bergado’s C Corp Pros and Cons

ranjan.254 / June 19, 2025

Before I dive into discussing thepros and cons of a C corp, I briefly want to touch on some other things relevant to you as a San Francisco Bay Area small business owner. Recession. The threat of it hangs in the air like a midwest thunderstorm. And as you anticipate it, you don’t have to wait idly for it to hammer your business. There are recession-proof moves you can make (choosing the right business entity structure being among them) to help your business. Even Congress is trying to make an impact. The passing of the Inflation Reduction Act could actually mean good things for your business. Advising you on the right moves to make is something I live for at ONeill & Bergado. If you’re in need of some guidance in your business to prepare for more stormy weather on the horizon, well, I’ve got you covered. Let’s talk: (408) 775-7790 Now, last week, I gave you an overview of the various business entity types. So this week, I want to start diving into the most popular one – the C corp – to help you determine which one is right for your San Francisco Bay Area business. Let’s dive in, shall we? Patti ONeill and Gale Bergado’s C Corp Pros and Cons“The secret of getting ahead is getting started.” – Mark Twain It’s only natural that you might want to pick the corporate structure of your company based on the one you’ve heard the most about: C corporations. The C corp is a prevalent corporate structure it’s true, but what are its plusses and minuses? This decision is huge for your company, so make sure the C corp is right for you. Here’s what to know. The basics The C corporation – named after the subchapter of the Internal Revenue Code that covers its tax designation – is a legally formed separate entity that insulates its owners/shareholders from its debts, among other benefits. It can borrow money, sell stock and engage in investment contracts. For federal income tax purposes, a C corp is recognized as a separate taxpaying entity. Generally, a corporation conducts business, realizes net income or loss, pays taxes, and distributes profits to shareholders. The profit is taxed to the corporation – the current corporate rate is 21%, though that might go up – and then the shareholders pay income tax on it when the profit is distributed as dividends. And you’re right: This can create a double tax. The corporation also doesn’t get a tax deduction when it distributes dividends to shareholders, and shareholders can’t deduct any loss from the corporation. You form a C corp by, among other tasks, filing with your state. These corporations operate according to state law; rules vary from state to state. Your best bet is to set up the corporation in the state where your operation is based. The pros C corps may not be best for all small business owners (see below) but if you’ve been in business long enough to want flexibility and the chance to responsibly raise capital, C might be the way to go. (A surprising number of C corps also have fewer than 500 employees.) Here are some advantages… Limited Personal Liability. This is one of the biggest draws.Forming a C corp turns your business into a legal entity separate from you and your personal assets – meaning they can’t be seized in a lawsuit that relates to your business or by creditors looking to square a business debt. In short, no shareholder, officer, or director is liable for debts of the corporation unless corporate law is breached or a personal guarantee given. (Judges have been known to rule that a C corp structure just masks shady business doings, but this is rare and unlikely to apply to you and your business.) Investors. A C corporation can sell stock or shares, either common or preferred, and there’s no limit to the number of shareholders (see below); you can also have international shareholders. C corps can go public – the glorious IPOs – and offer employees a stock option plan. Investors and venture capitalists (there’s no limit to the latter you can approach, either) tend to view C corps as more reliable and ultimately more profitable companies. Lenders and other types of financers tend to as well. Flexibility on taxes. C corps have more tax options than sole proprietorships, LLCs, LLPs, and S corps do. Yes, C corp business profits can become subject to double taxation, as we mentioned. But there are ways to trim this burden: Shareholders can be given a salary, for instance, and the corporation can write this money off as a business expense. Portions of startup costs are also deductible, and you can divide profits and losses between the business and the owners to create an overall lower tax rate. (Check with us on other tax-saving tactics.) Legal precedents. Corporate law is well-established, and C corps have been around a while and been the subject of many decisions. Should you find yourself in court regarding your company, your outcomes will likely be much less surprising. The cons No decision is one-sided in business, and picking a C corp has its potential wrinkles. Higher costs. The double taxation we covered (you also can’t write off business losses on your personal return). You pay various state and federal filing fees, plus your tax situation can be more complicated, as we said. Fees can be repeated, and tax filing is more involved. This means you need additional skilled professionals, such as lawyers, to help you. More paperwork. You have to file a number of documents, including Articles of Incorporation, corporate bylaws, corporate minutes, certificates of good standing, and, when the C corp gets enough shareholders, registration with the U.S. Securities and Exchange Commission. Again, you’ll have to pay for expert advisors to handle all this. More structure. This isn’t a business entity you run off your dining room table. For one, you have to hold formal shareholder meetings every year and keep detailed records of those meetings. Even

Business Growth

All About the SSBCI for San Francisco Bay Area Business Owners

ranjan.254 / June 19, 2025

Fill in the blank: It takes a village to ______. While you’re probably thinking of child-rearing right now, I’d like to suggest that it applies to your San Francisco Bay Area small business as well. And particularly during inflationary times. The 2020 world made it painfully obvious that going it alone could mean crash and burn for your business. Hence the creation of PPP loans and ERC credits… government-supplied village helpers made for you. Now that those have expired, and your business is having to stand more on its own feet, it doesn’t mean there aren’t still helpers out there. That’s good news with the possibility of a recession hanging in the air. Programs like the State Small Business Credit Initiative are just one of those village helpers – what I’d like to discuss today. Also, I’d like to think we here at ONeill & Bergado could be one of your village helpers, too. We’re here to help you steer your business into good financial standing and profitability… and keep you tax compliant. Ready for some help? I’m right here: (408) 775-7790 Also, times like these require that you remain nimble in every aspect of your business. One way to stay nimble? Start accommodating the digital wallet age in your business – people are less and less frequently carrying cash in favor of the ease that a digital wallet brings. Now, let’s talk about what the State Small Business Credit Initiative (SSBCI) is and how you can utilize it in your San Francisco Bay Area business… All About the SSBCI for San Francisco Bay Area Business Owners“Play by the rules but be ferocious.” – Phil Knight Now that a lot of pandemic-related stimulus and finance programs are over, wouldn’t it be nice if your San Francisco Bay Area small business had another source of funding to help you through these unusually lean times? Turns out you might. It’s called the State Small Business Credit Initiative (SSBCI) Program. You may have never heard of it, but it’s been around for more than a decade and was just renewed. Every year states nationwide get hundreds of millions of dollars to pump into companies like yours. How can your business get involved? Money coast to coast The SSBCI was re-funded (and expanded) by the American Rescue Plan Act of 2021. It’s set to give billions to states, the District of Columbia, territories, and Tribal governments to “expand access to capital for small businesses emerging from the pandemic, build ecosystems of opportunity and entrepreneurship and create high-quality jobs.” That may be bureaucratese, but it’s also sweet music to small-business owners who are trying to pull their companies out of the muck of the last few years. Earlier this year, Hawaii, Kansas, Maryland, Michigan, and West Virginia got almost six hundred and forty million combined. More than nine hundred and forty million is now headed to Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, and Vermont. This year’s SSBCI was geared to help states finance businesses with fewer than 10 employees, businesses owned by socially and economically disadvantaged people, and technical assistance. SSBCI helps jurisdictions set up public-private partnerships for equity investing or invest in venture capital funds; buy an interest in the loans made by lenders or lend directly; partially guarantee private loans; fund collateral for new loans; and partially backstop portfolios. Where the funds go Many states funnel the money toward new businesses in underserved areas. Tech areas seem to be a favorite sector, rural areas a favored locale. The SSBCI (and the states that get the money) wants to level the field between big corporations and Main Street – especially in these days of pandemic recovery, inflation, and supply chain muck-ups – and aims to “catalyze private investments” and promote business development, ideally generating ten bucks in lending and investment for every dollar federally funded through the program. Local programs are emphasized. Here’s how the latest round of funding will be used in a few of the states: How to get your slice Clearly, if your small business fits certain parameters, you might be able to tap some of this money via your state. How to reach them? To qualify for financial help through the SSBCI, you have to live or own a business in a state that’s been approved for funds. (Review the lists of the most recently awarded states here and here.) States do the applying for this program, but you can visit the SSBCI site to learn more about the eligibility requirements in your state. Check local banks or online financing sources for a lender that’s been green-lighted by the SSBCI. Then, as you would for any business loan, collect financial statements, credit reports, and other key documents and fill out the loan application. Another route would be to reach out to your state directly. States around the country call their overseeing agencies innovation or venture development corporations; sometimes they’re economic development groups; some of the agencies cover specific issues such as housing. Whatever the name, you can find a list of programs in states – and, just as important, the contacts – here. We’re not saying that getting money will be easy or quick. We are saying that it’s another potential source of funding for your business in these unprecedented times, and we’d be happy to help you tap it. Remember, you don’t have to go it alone in your business (and you shouldn’t). Relying on trusted helpers to help your business thrive in every season is just good sense. We here at ONeill & Bergado would love to be one of your trusted helpers. So, don’t hesitate to reach out if you need some guidance on whether the SSBCI is right for your San Francisco Bay Area business: (408) 775-7790 We’re here to help you build something lasting. In your village, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth

The Hiring Tips Your San Francisco Bay Area Business Needs

ranjan.254 / June 19, 2025

It seems like everywhere SMBs and retailers are short-staffed (and hiring). At the same time, with high inflation plaguing the country, other businesses are in the middle of layoffs. It seems as if these two realities would meet together, and establish an economic equilibrium … but from my (anecdotal) and limited analysis of the data, the sides of this particular equation don’t seem to be balancing yet. So, here we are. And if you’re in the “to hire” group, I’m sure you’ve learned that finding the right kind of help is way easier said than done. There are so many new things to consider right now, and the pressure to offer higher wages conducive to match inflationary pressures can complicate the process. Still, it’s not an impossible feat. In fact, it’s a highly manageable task I’d like to give you some tips for tackling in your San Francisco Bay Area business. Also, as a side note, with the September 15th deadline (for corporate entities) barrelling towards us please make sure that we’ve gotten everything we need from you, k? Any questions, shoot me a note or use this: (408) 775-7790 Ok, aside from that stuff, we’re also happy to be a sounding board as you take a look at how to improve your hiring process and find the right kind of people for your San Francisco Bay Area business. And here are some things we can talk about… The Hiring Tips Your San Francisco Bay Area Business Needs“We can’t completely eliminate the chances of hiring somebody wrong. It is very much like dating.” – Pooja Agnihotri You’ve got an on-premises, in-person job to fill. When you get a sec, you pull a resume off the top of the tall and long-ignored stack on your desk, dash off an email to the downtrodden job-seeker and within seconds you get a response asking when they can please please please come in for an interview?? Salary doesn’t matter. I’ll get to it … you think. Then you wake up. Today, you need every trick in the bag to retain employees so your company can keep running. Before you throw up your hands, think through hiring as a systematic process – like any other business move. Here’s my take. Hiring Process Tip #1: Set up a recruiting system If you hadn’t guessed, the unemployment rate has been falling more or less steadily for at least a year and a half. Gone are the days of “I’ll get to it.” You need a system to find people. Block out the time. Dedicate a half hour every day or a couple times a week to hunt for job seekers. Get yourself lots of room, a comfy chair, and mute your phone. Get resumes through the door. Most online recruiter sites will let you set up a resume alert that will efficiently ping you with people who come closest to matching your needs. Social media gets mixed reviews in general, but it remains a great recruiting tool. You can share job postings with your entire network (a good idea online and in person, by the way – think Chamber of Commerce). Posting photos and videos of your company and office space can entice suitable candidates. Other kinds of recruits. Recent retirees should be considered as a possibility. As inflation continues to pummel wallets nationwide, it’s also driving many of these skilled workers back to the workforce. And use the right people you have already: Your staff is part of your network, too, and an employee referral program can encourage more of your employees to help find the best talent they know. (For referral incentives, cash is still king.) The well-written job description. This continues to be one of the biggest draws for applicants. Use specific titles and spell out day-to-day responsibilities and needed skills. Don’t be shy about bragging about your values and people – in a recent survey more than 7 out of 10 respondents said those are key when responding to ads. Use a code word. One sneaky tip for a description: Ask applicants to include a code word in their cover letter, like “Mention [blank] in your reply …” Put this request two-thirds or three-quarters down in your description, but not at the end. This way, their cover letter will tell you if they bothered to read the entire job description. Have the money talk upfront. These are hard times for employers. The old rule says the first person to mention money loses… But there’s no getting around that applicants still look for this detail first. You’re going to have to talk money sometime, and it eventually saves everybody time to talk about it from the get-go. Provide a pay range in the description. Hiring Process Tip #2: Scan So now you’ve got your pile. How to get through it quickly? – The cover letter gives you a fast impression of the applicant’s personality and a notion of whether their experience fits what you’re looking for. What’s your gut reaction? By the way, did they use your code word? – Your first scan of the resume can turn up bad spelling and grammar but also look for keywords that fit your job opening. Scan a second time for skills and qualifications. Compare the applicant’s toolbox to the description of your job. – Read the job history closer. Any suspiciously short work experiences? This process – which with any luck you’ll get faster at – will help you see if the applicant qualifies for an interview. And keep all strong resumes. Even if they don’t fit this job, they might fit a future opening. Hiring Process Tip #3: Take a seat … Used to be the interviewee was the one selling themselves, and to a degree, that’s still true. But with the labor shortage today, you have to sell too. Big smiles and… Now, hiring is just the beginning of maintaining your workforce. This is the season of investing in your employees, showing them real value and appreciation. Sure you can throw money at people, but that may not

Business Growth, Cybersecurity

Why Your San Francisco Bay Area Business Needs Cyber Insurance

ranjan.254 / June 19, 2025

In today’s online-driven world, it’s no surprise that securing sensitive information is essential. Just like you cover your San Francisco Bay Area business for other possible risks (property damage, theft, injury, etc.) so should you also be thinking of how to keep your business safe from virtual attacks. And lest you immediately think: But – my business is completely different! Well, read on. Data breaches are rampant these days (In fact the IRS just had one. Yikes!). So, it just makes good sense to put protocols into place to prepare. And there is one specific way to prepare that I want to talk about today. Now, with the 3rd quarter estimated tax deadline around the very near corner (9/15) as well as the corporate deadline – which is looming very large for us right now – I also want to make sure we are in good communication about anything on your end that we need to know to help you. Let me know if we need to talk: (408) 775-7790 And to continue looking out for you, I’d also like to get into what you can do to pad your San Francisco Bay Area business in terms of protecting your technological assets… specifically, a little something called cyber insurance. Why Your San Francisco Bay Area Business Needs Cyber Insurance“Passwords are like underwear: You don’t let people see it, you should change it very often and you shouldn’t share it with strangers.” – Chris Pirillo The computers suddenly slow to a crawl. Customers start complaining they’re getting nonsense emails from your address. Out of nowhere, your system is telling all your employees to reset their password. And the biggie: You try to open a file and are told in big letters they’re now ENCRYPTED. Congratulations: You’ve most likely been cyberattacked. What started in recent years with headline breaches of big boys like Facebook, Yahoo, Uber, and Target has become so common now that a whole industry has grown up to insure companies against these hackings. What is cyberattack insurance – and how do you shop for it? What have you got to lose? Maybe it’s been a while since a household name in this country was cyberattacked, but maybe that’s also because the attacks are getting routine. Toward the end of last year, 1 in every 61 organizations the world over was hit by ransomware each week. The U.S. remains a top target. What does the insurance industry think of this, well, mess? As you probably know, with business insurance, “exposures” translates into how often a business is susceptible to risks that can cause loss and in turn affect premiums. In terms of cyberattack, do you have a lot of customer data? A breach in that case could mean big liability to an insurance provider. You should start your insurance shopping by assessing what the insurer’s going to have to pay for if you’re breached. How is your data stored? If electronically, how’s the security of your system? Do you use a cloud provider? How do you back up your files? How often? Where are the backups kept? Do your employees take laptops out of the office? (That last one’s very common – and some companies don’t think about it until it’s too late.) The average small business has to pay well into the five figures to recover from a cyberattack – if not more. What you’re shopping for Your standard business liability insurance either doesn’t protect you at all in the event of a cyberattack or gives you only barebones coverage. Not enough. Cyber insurance generally comes as either first-party coverage (which helps you get your own network and systems back) or third-party coverage (to help clients, customers and partners hurt by the attack on your system). Your policy should cover data breaches, cyberattacks, ransomware extortion, and terrorist acts. You should also see if the carrier will defend you in a lawsuit or regulatory investigation (look for “duty to defend” in the fine print) or provide coverage that exceeds other insurance you have. Coverage usually addresses: Loss of data. Your business policy typically covers your computer equipment but not the information that the equipment contains… Data that these days is even more important to keep your company running. Business interruption. Ransomware hackers love to freeze computer systems. How much money would you lose if you were dead in the water for a day? A week? A month? Investigation and notification costs. Depending on your industry, various federal and state laws require you to notify customers of data breaches. (You may even have to comply with the laws of every state where your customers live.) And you’re almost certainly going to need an outside cyber-forensic expert to drill down into what happened. Insurance can also help pay any fines or penalties you get hit with. Legal costs. Expert counsel is key – and often expensive – in this field of liability. PR costs. Brand rebuilding is pricey – and your reputation may need some TLC after your cyberattack hits the news. Cyber insurance runs about fifteen hundred bucks a year, but the devil is in such details as your type and size of business and of course the deductible, among many others. Whose market is it, anyway? As cybercrooks evolve and get craftier (latest scam: bogus offers of COVID training for employees), insurance carriers are getting pickier about who and what they’ll cover. Carriers – including Lloyd’s of London – are growing increasingly wary of policies for protection from state-sponsored hacking. Typically, carriers also won’t cover you if you have clear holes in your security before a breach occurs. They also often won’t reimburse you for future profits you lose from a cyberattack or even the costs of fortifying your systems against attacks down the road. Ask about “social engineering” attack coverage. This is when your employees follow instructions from fraudulent emails or other electronic communication. It’s technically not a system breach, so you’ll probably need a special rider to cover it. Your other questions for carriers: While it seems you’re paying

Business Growth

ONeill & Bergado’s Guide to Successfully Managing Remote Employees

ranjan.254 / June 19, 2025

Scrolling the 9/11 tributes in my social media and news feeds this past weekend served as an excellent reminder of how we all can bounce back from great difficulties. And the reminder seems especially poignant now as our nation (and San Francisco Bay Area business owners like you) continue to recover from the economic fallout of the last two years. Couple that with the passing away of Queen Elizabeth (7 decades of monarchy and one approach to ruling) and you have continuing signposts pointing to the shifting sands under our feet … and the demand to find new ways of doing things. As we had to adopt new practices post 9/11, so do we have to continue to adopt new realities post-pandemic. Among them: embracing and accommodating remote workers, both in your hiring and in your offerings to your current employees. The 5-day-a-week, 40-hours-in-an-office way of doing things is becoming less palatable in a world of more flexible work schedules and settings. So today, I want to examine the ways you can embrace this reality (if you haven’t already) and use it to your advantage. A brief note: There’s only one quarter left in 2022. But, there is still time to make positive moves to save your San Francisco Bay Area business on its taxes – and, of course, on your personal return as well, for THIS year. But, in the same way that good athletes get better in the fourth quarter of their games because they’ve done the advanced conditioning work to get there, saving on your taxes only comes throughplanning (and execution, obviously). So, let’s sit down and make a game plan for the rest of the year, and think ahead to next year, so you’re even stronger when 2023’s Q4 is here:(408) 775-7790 Alright then – time to dive into some best practices for managing remote employees, so you can continue to flourish while the sands shift. ONeill & Bergado’s Guide to Successfully Managing Remote Employees“I felt a tremendous distance between myself and everything real.” – Hunter Thompson If the pandemic taught us business owners anything, it’s that employees don’t always have to work in the office. Many operations leverage that concept these days, and it could be a great move to help your company grow. But handling employees who work remotely requires you to think about a lot of new things, from how they’re going to talk to each other to how you’re going to handle a new and evolving tax situation. So, here’s a little guide to help you with successfully managing remote employees in your business. Managing Remote Employees Tip #1: Making a connection Once upon a time, the phone was the only real method of quickly connecting other than in-person conversation. That reality is no more. By now, everybody has learned at least a little bit about the once sci-fi art of videoconferencing. Aside from glitchy internet moments or your cat getting into the frame, the concept has worked well for many companies over the past few years. When working with remote employees, videoconferencing is a must. Zoom has become the new “Xerox,” a technology brand name so widely used that it’s evolved into a verb. It is a standard tool for videoconferencing, free to get, and easily hosts multi-user meetings on your laptop. There are similar tools, too, like GoToMeeting, Google Meet, and (for a fee) Join.me. Whichever platform you use, make video meetings as regular as you would in-person. Keep them brief and to the point – we all spend enough time looking at our screens these days – but don’t be afraid to throw in a joke or a trivia game to keep folks engaged. Useful topics can also include how to set up a home office, which is still a new skill for some workers. Also, don’t forget those pesky time zones! It’s one thing to expect someone’s face to show up on your screen for a 10 a.m. meeting if they’re an hour ahead or behind you but quite another if they live on the opposite coast or overseas. For those times when you don’t need a thousand words to replace a picture, instant messaging is a quick way to chat and share docs with one employee or a whole group. Well-known messaging tools are Slack and Microsoft Teams, though there are many others. Managing Remote Employees Tip #2: The same but different A virtual staff begins just like an in-person one does. You must attract workers, and that starts with a job description. A job description for a virtual position has to be a lot clearer upfront about many details that might never even appear in the description for a non-virtual position. If you expect people to be ready to meet at 9 a.m. or if you expect them to come into the office periodically, make that clear first thing. Remote recruiting also brings your online presence under scrutiny. Make sure your company website and social media profiles are what you want to attract talent. It wouldn’t hurt to add positive info about your staff and work environment. While we’re on the subject, know that remote work options remain a strong draw for candidates and a solid retention tool for your staff. If you’ve become one of the growing number of business owners who are sold on this way of operating, make sure staffers know that – they might not be sure, otherwise. Managing Remote Employees Tip #3: Hard numbers Remote employees dividing their time between more than one state can complicate unemployment and taxes. Unemployment is the simpler of the two: Your company pays state unemployment tax to only one state, and that’s where the employee will collect the benefits. Generally, determining which state to pay includes assessing whether the work is done all in one state, where the base of operations is, and the location where your worker gets supervision. If none of those apply, the unemployment state is the residence state of the employee. The state income tax situation for employees is much more complicated right now. A recent

Business Growth

Ending Customer Relationships for Growth in Your San Francisco Bay Area Business

ranjan.254 / June 19, 2025

With the way that the economy is going, inflation, the market gyrations, etc … ANY business seems like good business. Until it isn’t. Consider … Have you ever been in a San Francisco Bay Area store when a customer starts yelling at the employee behind the counter for something tiny? The customer makes demands and throws an adult-sized temper tantrum to get their way and the worker complies because … well, the customer’s always right … right? That kind of mindset seems to persist in our free economy, and I’ve heard stories like this from various clients. They’re frustrated with these “Karens” but don’t seem to feel like they can let them go. Maybe you don’t have customers yelling at your employees (or maybe you do?), but you do have people who put a serious drain on your company. And finding a smart way to cut them out of your customer base is a wonderful thing. I HIGHLY recommend you do this, and soon. It can be hard to cut those people off because you fear jeopardizing your revenue. Or maybe you’ve worked with them a long time or have a personal relationship with them and don’t want to lose that connection. But may I pose to you that it’s time to shake off that mentality, to move past those types of clients, and get a bigger vision for the kind of customers you really want to serve in your San Francisco Bay Area business? And though this isn’t our normal client conversation fare, I’m happy to talk more about this with you. But what we’re REALLY here for is to get your business finances to where you can see the right leading (and trailing) indicators for financial health. Let’s have THAT conversation:Patti (408) 775-7790 Gale 408-775-7800 Pruning out the bad to make room for new growth in your business is absolutely something to look at. Here are further thoughts to get you going… Ending Customer Relationships for Growth in Your San Francisco Bay Area Business“Dwelling on the negative simply contributes to its power.” – Shirley MacLaine Ever take care of a plant? At some point, you probably noticed brown leaves and dead branches. You carefully picked them off or cut them away, and not long after, you saw fresh green sprouts appear. Easy to see where we’re going with this: If your business was that plant, which customers would the dead stuff be? Losing customers goes against the grain of our small business sense. But when it comes to saying goodbye, not all customers are created equal. How do you pinpoint deadwood customers – and what do you do once you find them? Ending customer relationships step #1: Discovering the bad apples Bad customers at least do you the favor of waving red flags, though sometimes they may not look red at first glance. Your top funnel and your bottom line, for instance, could be confusing you. A given customer may pump a lot of money through your door – but by the time they’re done using your company’s resources, how much of that money becomes real profit? Assuming your business model hasn’t changed and that a given tough customer still fits the profile of someone you can service, another red flag can be that you and your staff spend too much time appeasing this customer. Customers who are always demanding but never return your calls, emails, or texts and who seem to make it their life’s mission to be unhappy with your company (yet who never leave …) are just a drain. Check your books. What expensive staff hours and overhead do they consume, and how much do they pay you for that? What’s the cost to you of goods sold? This will take some sharp looking at detailed numbers and can be more of an art than a science, but it’ll be worth it if you finally spot a bad apple in your barrel. Another way to isolate the bad is to recognize the good. Which customers seem self-sufficient and don’t overburden your support team? Do they understand your side of the problem and don’t have a default of nitpicking over price? Do they talk you up in their own networks? Ending customer relationships step #2: What do I do now? Like we said, it goes against the grain for all of us to feel giddy about dumping customers. Decide solely based on figures discussed above. There’s no need to get rid of a customer out of anger – or keep one out of sentimentality. Raise prices. There’s no need to jack up your prices across the board to make up for what one bad customer costs you. If you need to raise prices, consider doing it selectively. Start with raising them on just your unprofitable customer. That may solve the problem for you. Reassess. Is the deal you have with this customer the one you signed on for? For instance, did you once give a discount for a volume of sales that never came to be? Has their management changed and is no longer so easy to deal with? Sell them more. Chances are excellent that they’re unaware of all your company can offer – another service or product might suddenly turn into a profitable customer. Educate them. Half the problem for an unprofitable client may be that they just don’t know how to use your product. Remember that nobody likes admitting when they need training. (This can work especially well with B2B customers.) Ending customer relationships step #3: Saying goodbye Raising the price and cutting the service will probably get them out the door. For one, mentally prepare for them to bolt for your competition. You might even expect to hear some negative comments. No, we wouldn’t like it, either, but that’s just business. (Don’t forget to wish your competitor lots of luck …) Such a customer’s departure will naturally inspire you to find new customers – a diversified customer base is almost always good – and remember that it’s better these days to lose one difficult customer than

Business Growth

How San Francisco Bay Area business owners can beat occupational stress

ranjan.254 / June 19, 2025

As a San Francisco Bay Area business owner, you carry the weight of your company on your shoulders. But the reward is this: when things go well – your profits are good, you’re meeting your business goals, you’re dreaming for the future, entrepreneurial FREEDOM is in the air – you have a joyful load to carry. But then there are challenges… I don’t probably need to remind you: supply chain shortages, economic recession (cuts to be made?) hiring and firing, changing suppliers, shifting inventory systems, MEETING PAYROLL — all of it can feel like a weight that can be crushing. You’re not alone, by the way. So let’s together name the fact that it’s hard to keep the ebbs and flows of business from ruling your mental and emotional state. But, if there’s anything I could press you to do (and do it today), it would be this: Find your path towards what I’ve heard called “benevolent detachment”. “Benevolent” because you are pursuing this so that business and life goes WELL (rather than neglectfully falling apart), and “detachment” because these ups-and-downs within the business should never dictate your identity, the state of your soul, or your family life. All of this is not only essential for your health, but I would posit that it’s essential for the health of your business as well. If you’re bogged down by the weight of it all, and not finding relief or support for navigating it, then your business will suffer because you are the heart (and the head) of it. Now, one step you might take toward easing the toll of it all would be sitting down with my team and me here at ONeill & Bergado, so we can take a look at where things are and help you get things to where you want them. We can dial into 4th quarter things, as well as the coming year. If that appeals, let’s get something setup so we can help ease these burdens: (408) 775-7790 And, here’s another way we can do that, via today’s topic … How San Francisco Bay Area Business Owners can Beat Occupational Stress“There cannot be a crisis next week. My schedule is already full.” – Henry Kissinger It’s all on you as the owner of a small business: the profits, losses, payroll, hiring, inventory, and keeping the lights on. Running your business may be your dream – but ceaselessly being chief cook and bottle-washer is enough to drive you crazy. Are you putting in more hours at work than anywhere else (including with family and friends) combined? Trouble sleeping? Can’t concentrate? Those can be signs your mental health needs shoring up and your occupational stress level could be part of the issue. Credit and concern First, give yourself credit for all you do. In the grind of daily business, it’s easy to forget that you probably routinely put in long hours (and longer after hours) and feel alone when you worry about where the money is going to keep coming from. Don’t kid yourself about running your own business: “Independence” can often mean “alone.” The numbers don’t stop, either – cash flow, finances, invoices… You have to keep up with admin and latest regulations. And you worry about your workers and their families. At least you’re not alone in feeling occupational stress. Four in five small-business owners recently reported having common symptoms of poor mental health at least a few times a year, including inability to focus (the most common), anxiety, bad sleep, panic attacks, and symptoms of depression. The huge business challenges of the last few endless years just made those all worse. Other warning signs unique to business can include feeling more tired earlier in the workday, getting unusually mad or frustrated with workday tasks or coworkers, and finding it harder to make decisions that were once simple. (You can also use this checklist of symptoms.) That same survey showed that almost half of small-biz owners have never accessed support and almost a third said they didn’t know where to go for help or didn’t know support was out there. We never say this – but stop reading right here if you think you’ve got a problem and call the Mental Health Hotline at (866) 903-3787. Any local mental health group or professional can hook you up with help, too. DO NOT BE AFRAID TO ASK. How to fight back When whittling your to-do list has ceased to satisfy you at the end of the workday, or if business just doesn’t seem to improve no matter what you do, turn for a bit to immediate tasks that need to be done and that you can knock down quickly (administrative stuff maybe, or other paperwork). Maybe learn a new business skill that can boost your business down the road. The new focus may bring new fulfillment. Away from the job, it’s a matter of making the time: Just as it took discipline and work to build your company, it’s going to take the same things to relieve your stress from that business. It’s not just you Though it may sometimes feel like you’re alone in your company, you’re not. You have workers – and they might feel stress, too. Seeing you deal with your problems may encourage them to tackle theirs. That can only be good for your company in the long run. Encourage regular hours and time off. Teach your managers how to spot problems in staff early. Openly discussing anxiety, depression, and other problems encourages constructive ways to fight it. It’s one more tool to keep your company on track in these tough times. That’s what we’re always here for. As a local San Francisco Bay Area business owner myself, I can relate to the burden you carry. Which is why I wanted to speak into this topic today. Thriving in business isn’t just about good numbers and client influx. It’s also about finding regular joy in what you do. And we hope this helps get you on that path. On your team, Patti ONeill and

Business Growth

How San Francisco Bay Area Owners Can Have a Productive Business Meeting

ranjan.254 / June 19, 2025

Ever finished a meeting and thought That could have been an email? Yeah, I get that. Work meetings are one of those necessary evils that too often end up being time wasters rather than savers. But you can’t simply wave a magic wand and eliminate them (though, in certain cases, it might be the dash of cold water you and your San Francisco Bay Area business need). Some are important as a means of company-wide communication, updates on various projects, strategy sessions, vision casting, connection, etc. So, how do you have a productive meeting AND limit them at the same time? That’s the question I want to take up today. Now, as a reminder, we’re in the 4th quarter and will soon be staring down the barrel of a new year and the inevitable tax compliance (i.e. tax return preparation) season. But you still have time to make moves to get your San Francisco Bay Area business better situated (i.e. tax planning) before the bell. Let’s get something on the books to discuss what that might look like for your San Francisco Bay Area business:Patti (408) 775-7790 Gale 408-775-7800 But we can also keep the meeting short. Because, well … How San Francisco Bay Area Owners Can Have a Productive Business Meeting“People who enjoy meetings should not be in charge of anything.” – Thomas Sowell The voices slowly morph into sounding a lot like Charlie Brown’s teacher, your head starts to droop, and your mind begins to liquify into thoughts that have nothing to do with this meeting. Yes, yet another meeting. We’ve become so accustomed to tedious business meetings that we’ve lost all sense that they could, with planning, be – though it does stagger the mind – productive and useful. How? Let’s all take a seat, and we’ll get started. Whose time is it, anyway? Meetings, born in corporate culture, have mushroomed. Almost half of business employees have “several” meetings a week (more than one in five people have at least a meeting every day). The average length is 45 minutes. More than a third of business meetings don’t use an agenda. The result: Seven out of 10 employees feel their time is being flat out squandered. Nearly two out of every five respondents admitted falling asleep during meetings. (Video meetings, booming during the past few years, tend to garner more favorable reviews. Almost nine out of 10 respondents said video conferences sped up work and sharpened attendees’ focus.) Executives say that almost half of meetings serve no purpose – and that two-thirds are just plain failures. When, why, and how big should your business meeting be? You can’t replace meetings totally, nor should you. Often, you have to get coworkers in the same room (or on the same Zoom screen) to swap ideas. But could something have replaced that meeting? A phone call? A fact sheet? In other words, is the meeting going to help move work forward – or replace work, only giving everyone a sense that something’s getting done? Experts say meetings should constitute at most a fifth of your work life; too many meetings can simply shatter concentration. And meetings should never be the first go-to for exchanging ideas. If your business has too many meetings, look at who’s calling them. Limit the number of workers who can call a meeting before you create a bunch of time bullies. Monday is the least popular day to have a meeting. Tuesday and Wednesday are preferred. A big question: How many people should be at a business meeting? (Your answer might be, “One…”) Size depends on what you have to cover, but as a rule you should think about the minimum needed before you message everyone to schedule a time. Who really needs to hear the points? Who gets invited to all meetings just out of habit? Who’s going to only bog things down? Amazon guru and occasional astronaut Jeff Bezos has his own rule: You should have no more people in your meeting than you can feed with two pizzas. Stick to the plan Following an agenda can keep everyone on track and cut meeting time significantly. Your agenda needs five basics: the main themes (what are you trying to accomplish here?), talking points, support documents, decisions to be reached, and action items. Get the supporting docs to attendees beforehand so they have time to digest the info and better prepare their input at the meeting. Generally, schedule a meeting at least two or three days out. To increase participation in the meeting: If nobody has any questions toward the close of your meeting, has it been a success? Sure, maybe you covered everything completely and there were absolutely no more dots to connect. More likely, they just couldn’t wait to get out of there … Are there any questions? There should be, for both the attendees and for the person who ran the show. For attendees: How did this meeting compare to the last one? Did we hit the goals in the agenda? Did the meeting give you what you need to solve problems that were present before the meeting? For the presenter: Who was distracted? Who did most of the talking? Did the talk shift to irrelevant topics? A small anonymous survey after the meeting might help, too. What worked well? Was there something missing? Have participants summarize the meeting in one word or sentence. This gives you an idea what they’re thinking and if this meeting was worth the time. There’s no avoiding meetings completely in business – but with a little work you can make them a little more necessary and a little less evil. Now, naturally, this is just a baseline to get you started. You have to figure out what works best for your San Francisco Bay Area business. I am confident you’ll find the way. And, I’m here to support you as you do. Happy to help, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Employee Benefits

Can San Francisco Bay Area Businesses Still Get the Employee Retention Credit?

ranjan.254 / June 19, 2025

Everybody keeps saying we’re slowly leaving the pandemic behind – and for San Francisco Bay Area businesses, that means that pandemic tax relief is disappearing, too. But can you still qualify for one of the most popular of the Covid-related federal breaks: the Employee Retention Credit (ERC)? Here’s the deal: you have likely heard from friends or heard aggressive marketing campaigns that are promising the moon. BELIEVE ME when I tell you how the tax professional community has been viewing these companies – it isn’t kindly. And now Congress and the IRS are gathering themselves to bring down the hammer on overly-aggressive claims in this area. So today I want to separate truth from hype. But if you want to talk more about it one-on-one, let’s get something on the schedule:(408) 775-7790 But let’s dive in, shall we? Can San Francisco Bay Area Businesses Still Get the Employee Retention Credit?“You must pay taxes. But there’s no law that says you gotta leave a tip.” – Ad for Morgan Stanley The Employee Retention Credit (ERC) is gone now, but it might be worth the trouble to retroactively file certain quarterly tax returns and try to get money back. Here’s what you should think about. Running the numbers The ERC was designed to help San Francisco Bay Area employers like you keep employees on the payroll during the tough times of the pandemic. The credit was based on qualifying wages paid to employees and was quarterly-based relief for 2020 and most of 2021. Generally, to qualify a company had to experience a significant decline in gross receipts, shut down on government orders, or have suffered supply chain disruptions. For tax year 2020, you qualified in any quarter in which your gross receipts were less than half of those in the same quarter in 2019 (with some additional details). For 2021, you could claim the ERC in any quarter in which gross receipts were less than 80% of those in the same quarter in 2019 (or 2020 if your company wasn’t old enough). (Figuring your gross receipts isn’t as simple as just looking back through your books. You may qualify even if you don’t think so at first glance. Reach out to us.) Slightly different versions of the ERC are available depending on your company size. You calculate the amount of ERC using the payroll for full-time employees (and, with some additional math, part-timers, too). Qualified wages were generally gross wages plus employer health insurance costs. The maximum credit was $5,000 per employee for all of 2020 and $7,000 per quarter per employee for 2021. If you qualified, you could (and still can) claim the ERC for qualified wages you paid in all four quarters of 2020 and in the first three quarters of 2021. “Recovery Startup Businesses” that opened after Feb. 15, 2020, and that had annual gross receipts of less than a million bucks could also claim wages for the last quarter of 2021. The recovery startup ERC limit was 50 grand per quarter; the credit was equal to 70% of qualified wages paid to employees in each quarter. Employee Retention Credit Re-filing You can still amend the IRS Form 941 for the quarters where you now think you qualified. To amend, you need to file Form 941X. Each of your quarterly 941s is considered filed by Tax Day the following April. You have three years from these filing dates to amend previous filings to try for the ERC: Tax Day in April 2024 or April 2025 depending on whether you want to apply for the credit for 2020 or 2021. You’ll need documentation to prove your decline in gross receipts or to prove that you were subject to a government-ordered pandemic shutdown. Undocumented claims about supply chain disruptions won’t help you get an ERC. Step right up The ERC changed frequently and has confused a lot of people. For instance, the American Rescue Plan extended the ERC to the end of 2021, although the Infrastructure Bill passed in November 2021 ended the ERC retroactively on Sept. 30, 2021 – but not for Recovery Startup Businesses. Got all that? Some other points of confusion include… I heard a guy on the radio tell me he could get me thousands back for the ERC overnight … Boutique ERC mills have cropped up lately, promising the moon for a cut of your easy credit money. Except: While I want to equip you with tools and data to take advantage of those tax-reducing deductions like the Employee Retention Credit as long as you can, I also want you to understand the situation fully and have someone on your team that you trust to give it to you straight. That’s one thing you can depend on when you come to me. And I’m happy to help… Helping your San Francisco Bay Area business, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Tax Planning

Our (Early) End of Year Checklist for San Francisco Bay Area Businesses

ranjan.254 / June 19, 2025

When I think about the holiday season, I think “calm before the storm.” That’s because in my profession, once mid-December hits, we’re scrambling to handle EOY matters. And then when the new year strikes, we’re holding our breath for a few weeks … and then tax season is upon us. We are very “calendar-driven” in the accounting profession. For “normal” San Francisco Bay Area business owners, this season can mean all different kinds of crazy. (But hey — we can still enjoy the smells, like turkeys roasting, cookies baking, and evergreen wreaths). And as you prepare to fill your houses with holiday cheer, and prepare for the crazy, I really am here to help. In my opinion, you need to carve more than just the turkey … you need to carve out some time to examine where things are at in your business and what you still need to get done before the stroke of midnight on December 31st. Of course, besides the helpful end of year checklist I’m bringing to you today, we can always sit down and do a once-over and find what to prioritize to lighten your tax burden and your other business burdens: Patti (408) 775-7790 Gale 408-775-7800 But, let’s start here. This is a good rundown of what you can still do over the next 6 weeks to get your business in shape and ready for a new year. Our (Early) End of Year Checklist for San Francisco Bay Area Businesses“It does not do to leave a live dragon out of your calculations if you live near one.” – J.R.R. Tolkien The close of the year is a natural time to take stock of all things, and one of them should be your business. Your money – as well as your plans for it – should be top of the list. From your people to your payroll taxes, budgets to your bank: Though financial assessment can seem to be a big basket, with proper planning you can tick off one item at a time and set yourself up for 2023. So, let’s take a look at this end of year checklist I like to share with San Francisco Bay Area business owners. End of Year Checklist Category #1: Financials Give a once-over to your key financial documents, such as your balance sheet (assets, liabilities, and shareholder equity), income statement/P&L, and cash flow statement. What to look for: Balance sheet: Are your receivables and debts in line with total assets? Higher inventories can reflect lower sales, and double-check for contingent liabilities and their due-dates. Income statement: Unexplained drops in sales and marketing expenditures: Do they correlate? If not, look back to see what went wrong. Did operating costs ever rise occasionally without a corresponding rise in revenue? Again, what happened? Cash flow statement: Operating activities should be your biggest category. Too many big but infrequent payments from just a few clients? Delayed receivables? Prepare a budget for 2023. Go over your A/R past-dues and look ahead to factor in upcoming capital improvements in addition to regular operating expenses. Check your inventory and pre-pay if possible for items and services such as insurance, professional dues, or rent that you’ll need next year. Use last year’s budget as a guide, but not as an ironclad roadmap: Every year is different. With inflation and ongoing supply-chain messes likely into 2023, it pays to plan and now. End of Year Checklist Category #2: Third parties Aside from suppliers, two of the biggest outside businesses impacting your company are your bank and your insurer. Banking: Simply, are you getting all the services you need, such as employee company credit cards? Is your access to your bank sufficient (either through in-person branches or online)? Are fees too high? Are they meeting all your credit needs (including for Small Business Administration loans)? Can you get better support or perks elsewhere? Insurance: Make sure your policy is renewed and up to date. Looking ahead to 2023 developments that you expect for your small business, do you have coverage for those changes? Need any policy riders? See if bundling coverage will save on premiums. End of Year Checklist Category #3: Employees Aside from making sure everybody checks the new calendar to slot vacations ASAP, perks and taxes are two big details to check before the new year. Retirement plans. Review reporting requirements based on the size of your plan and its participant numbers. Some businesses give end-of-year bonuses or retirement contributions to employees, which can come with a tax break. If you don’t have a retirement plan for workers, look at options for creating one in 2023 – even small companies (100 or fewer employees) can easily set up a SIMPLE (Savings Incentive Match PLan for Employees) IRA. We can help you do this. Review payroll. Double check with us if you have questions in this area, which frequently changes. Starting next year, for instance, the base annual wage for computing Social Security tax will increase to 160,200 dollars, up from 2022. Did you get any pandemic relief for payroll in the past? Make sure that such credits and loans are wrapped up heading into 2023. End of Year Checklist Category #4: Operations Tax documents. It’s never too early. Start with the financials we mentioned before and check with us about having to fill out any additional forms: Examples might include W-2s or W-3s; quarterly, state, and federal returns; or IRS Form 1099-NEC – this year, the latter kicks in for just $600 in payments to most independent contractors. Assemble your paperwork for deductions; we’d like to look at it sooner rather than later to get you all the money back that we can. Debt, income, and expenses. Generally, try to rattle debtors’ cages and get your outstanding A/R by the end of the year – cash in hand always makes bookkeeping easier. There may be times when deferring income into the new year makes tax sense. Ditto for deductible expenses: Taking a major business deduction (for capital equipment, say) can make a big difference for your company’s taxes in one year but

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