I. BUSINESS START-UP AND ORGANIZATION SERVICES

A business start-up advisory service includes acquainting a business owner with the necessary federal and state registration requirements and understanding what it takes to start a business from the beginning or acquiring an existing business and taking over. The vital components include, but are not limited to the following:

1. Discuss the sources of revenue and expense.
2. Review market conditions and the prospects of sales build-up.
3. Identify the necessary expenses required to run the business.
4. Identification of staff and an assigned work force.
5. Developing a viable business plan, including financial projections.
6. Location and ownership of the business.
7. Obtaining the necessary federal and state tax registration numbers for sales tax, meals tax and payroll tax withholdings.
8. Formation and opening of an entity checking account.
9. Developing a team of professional advisors, including insurance professionals and competent, qualified legal advisors.
10. Weekly operations and responsibilities including payrolls, setting up of business and out-source controllership functions.

II. BOOKKEEPING SERVICES

Our firm will provide periodic bookkeeping and accounting services to local businesses, including the following:

1. Reconcile cash accounts on a monthly basis.
2. Reconcile accounts receivable and accounts payable
3. Print and disburse checks, deposit proceeds into the corporate checking account.
4. Administer weekly, monthly and quarterly payroll obligations.
5. Prepare plain paper management financial reports on a regular basis.
6. Communicate directly with your accounting firm or other professional advisors.

III. ENTITY SELECTION AND SET UP SERVICES

We will advise on the selection of an operating entity and the reason for such selection

1. Identifying the legal exposure that the business has.
2. The reason for setting up the entity.
3. Explanation of the different types of entities currently in existence.
   CORPORATIONS - C TYPE
   
   CORPORATIONS - SUB CHAPTER TYPE
   
   GENERAL PARTNERSHIPS
   
   LIMITED LIABILITY PARTNERSHIPS
   
   LIMITED LIABILITY COMPANIES
   
   SOLE PROPRIETORSHIP
   
   BUSINESS ASSOCIATIONS
   
   NON-PROFIT ENTITIES
   
   CORPORATE FOUNDATIONS
   
   TRUSTS
   
   REAL ESTATE INVESTMENT TRUSTS
   
   DEVELOPMENT COMPANIES
4. Explain and consult on the different tax documents required to file an entity tax return, and the unique structural benefits of each one.

IV. TAX PLANNING AND ADVISORY SERVICES

We will provide business and individual tax planning services that will minimize the tax obligation through compliance and timely filing of individual and entity returns.

1. Individual tax planning from Form 1040 - personal income tax returns.
2. Entity tax planning services, including second level tax and analysis of corporation built in capital gains.
3. Advisory on basis of ownership, loss limitations, and passive activities.
4. Advise on entity merger, sale, consolidation, and dissolution.
5. Retirement planning including the advisory set up for retirement accounts and the selection of a qualified plan administrator.

V. TAX PREPARATION SERVICES

We will prepare individual, entity, association, trust and partnership tax returns as required. Our firm uses CCH PRO FX tax software. The tax preparation process is a vital part of the compliance.

1. Individual tax returns Form 1040 and all required attachments.
2. Corporation tax returns Form 1120 and all sub parts, including required schedules and state filings.
3. Partnerships, Limited Liability Companies, Limited Liability Partnerships and all required federal and state documents.
4. Trust tax returns Form 1041 and all attachments.

VI. FINANCIAL STATEMENT SERVICES AS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

We will prepare entity related financial statements as required by banking institutions, law firms and other agencies. The preparation of monthly, quarterly and annual financial statements benefit the owner of the business by staying informed and on top of the numbers.

1. Compiled financial reports
2. Reviewed financial reports
3. Audited financial statements

VII. BUSINESS VALUATIONS AND COMPANY OWNERSHIP ISSUES

We will provide business valuation services to determine the value of a business for the following reasons:

1. Sale or transfer to a second generation.
2. Estate reasons due to death of the owner.
3. Family succession issues.
4. As required by generally accepted accounting principles.
5. Sale of the business - merger into another entity.

VIII. ESTATE PLANNING AND ADVISORY SERVICES

We will provide estate planning services to identify the need to protect personal assets and minimize the estate probate process.

IX. REAL ESTATE PLANNING SERVICES

Owning, acquiring or selling real estate can provide a unique benefit. Real estate transactions should be maximized by knowledge of several tax planning factors, including:

1. The benefits of owning real estate personally or inside a separate entity.
2. 2. Taxation of real estate through capital gains.
3. 3. Tax free exchange of property and deferral of gain on the sale of property to a future date.
4. 4. Commercial real estate development issues.
5. 5. Sale of real estate and lease back provisions for property used in your own business.
6. 6. Understanding the use of debt and avoiding recognition of income and the sale of real estate.
7. 7. The use of real estate as an investment vehicle.
8. 8. The use of real estate for family and business tax planning.

We look forward to servicing your business and personal needs MATHIAS, BARNES & HENSHAW, P.C.