Seven Reasons to Join The Chamber

1.    Expand Your Reach – People do business with people they know. That’s why Chamber initiates more opportunities for connecting local professionals than is available through any other local organization. Business After Hours and Block Party networking events, weekly Ribbon Cutting ceremonies, Networking 9s quarterly golf outings, Eggs & Issues breakfasts, Leads Groups, Think Flagler First luncheons and annual events like Creekside Festival and Flagler Restaurant Week are all designed to raise exposure for members.
2.    Speak a Little Louder – Through a proactive government affairs program and relationships, the Chamber represents the local business community with local, regional and state government. This involves giving members a voice and encouraging pro-business policies, practices and legislation. 
3.    Learn Something New – Sometimes it’s as important to work on your business, as it is to work in your business. Throughout the year, the Chamber offers training sessions, workshops and seminars to help businesses stay on track and become more successful.  
4.    Be a Star – Membership comes with its perks, including exclusive members-only benefits. Business improvement grants, member-to-member discounts, referrals and publicity support for Ribbon Cutting or Grand Opening events are just a few opportunities members receive at no additional cost. 
5.    Gain Visibility – The marketing benefits of supporting the Flagler County Chamber are plentiful. Members receive multiple points of exposure, including complimentary radio time on WNZF 106.3FM; visibility in The Voice, a monthly newsletter than runs in the Flagler/Palm Coast News-Tribune, and 24-hour exposure in the online Member Directory at www.flaglerchamber.org. Members can also make additional investments to sponsor special events and advertise in widely read publications like The Voice, Flagler Connect, Thrive and Fantastic Flagler.  
6.    Get Involved – Opportunities for involvement are a key element of the Flagler County Chamber. Whether it is through one of the four Area Councils, a program, committee or the Diplomats, members can contribute to the work of the organization and the progress of our community. In addition to helping to make a difference, involvement can also expand your business contacts.
7.    Stay Informed – By being involved with the Flagler County Chamber, businesses gain an “ear to the ground” on what is going on in the local community. The Chamber utilizes blogs, social media, weekly emails and monthly newsletters “What’s Happening” to deliver business and member news directly to members.

Six 2014 Tax Changes for Small Business Taxpayers

BY STEPHEN BARNIER, JR., CPA®, BARNIER & WEBBER, CPAS, LLC

Benjamin Franklin is credited with saying, “In this world nothing can be said to be certain, except death and taxes.” Well, when it comes to taxes, the only certainty is constant change. The year 2014 brought its share of changes to the Internal Revenue Code. Congress failed to extend many tax breaks included in the American Taxpayer Relief Act of 2012, and these benefits expired at the end of 2013. However, as I write this Congress is considering retroactive changes that could drastically impact many small business taxpayers for the 2014 tax year. It is likely that we will not know the full extent of these changes until we get ready to file in a couple months, but here are eight anticipated changes that will impact small business taxpayers when filing their 2014 tax returns.
 
1. The Section 179 deduction limit for 2014 was cut to $25,000, compared with $500,000 in 2013. This deduction allows taxpayers to deduct 100% of major asset purchases in the year of purchase instead of depreciating the asset over its useful life.
 
2. Bonus Depreciation expired at the end of 2013. The bonus depreciation allowed businesses to deduct 50% of the purchase price of major assets, even if Section 179 was not being used.
 
3. The small business Health Care Tax Credit allows small businesses that pay at least 50% of their employee’s health insurance, a tax credit of up to 50% of the premiums paid. To qualify, the business must have fewer than 25 full-time equivalent workers with average annual wages of less than $51,000. 
 
4. The standard mileage rate for 2014 is $0.56 per mile.
 
5. There is now a safe harbor deduction for claiming a Home Office Deduction. A taxpayer can bypass providing a detailed expense record and take a deduction equal to $5 for every square foot of home office space used. The maximum safe harbor deduction is $1,500.
 
6. The Work Opportunity Tax Credit is not available in 2014. This credit allowed employers to take a tax credit for hiring workers in specific categories, including veterans, food stamp recipients, and workers in other targeted areas.
 
Our firm of CPAs, Enrolled Agents and tax professionals will be tuned into Congress over the coming weeks to see which of these tax benefits are extended, and what, if any, new tax rules are created. We will be ready to serve our clients no matter what changes come into play and recommend you contact your accounting professional to see whether any of these changes will affect your business and filing requirements.

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The Anatomy of a Partnership Agreement

BY TOM HELLMAN, PRESIDENT, SCORE 87

TOM HELLMAN

Two heads are better than one, especially when trying to build a successful small business. That’s why many entrepreneurs team up to launch partnerships.

Partners share both the risks and rewards of the venture, with each participant contributing money, property, labor, connections, and skills—often complementing each other’s talents and resources. As a result, the whole becomes greater than the sum of its parts.

But apart from the positive dynamics of partnerships there is also the potential for problems, which can doom both the business and the personal relationships involved.

If the partners decide they can and want to work together, the next step is to draft a legally binding partnership agreement. This document should be prepared with the assistance of an attorney. While the partners can make their agreement as general or specific as they feel is necessary, there are key issues every agreement should address.

SIX KEY ISSUES OF A PARTNER AGREEMENT:

•    Percentage of Ownership. This isn’t always about cash. Some partners invest with little intent to play a major role in the business. Other times, partners bring specific skills, contacts, equipment, ideas, or other resources without which there would be no business.
•    Allocation of Profits/Losses. Will they be divided according to ownership interest? And will some partners be permitted to take draws—an “off-the top” cut of profits?
•    Binding Power. Because any partner can legally bind the partnership to a contract or other liability, the agreement should specify what is needed to bind the partnership to an obligation. Also, consider if that power should be limited by person or area of responsibility.
•    Making Decisions. Two or more heads may be better than one, but who has oversight over what function, and who has the last word?  
•    Death/Departure of a Partner. A buy/sell agreement establishes a method by which the partnership interest can be valued, and the interest purchased by either the partnership or individual partners.
•    Dispute Resolution. A mediation clause will provide a procedure to prevent a conflict of any size from paralyzing the company.

While partnership agreements are not required by law, the risks of attempting a venture without one far outweigh the time and effort required to develop such an agreement.

As with a business plan, the partnership agreement is a living document. Situations may arise as the business grows that aren’t covered, forcing the partners to act quickly and maybe not as thoughtfully as they’d like. It is important to schedule periodic reviews of the agreement that will help iron out inconsistencies and head off potential areas of conflict. 

Websites, such as www.nolo.com, and a number of legal software programs offer partnership agreement templates, but don’t assume that simply answering the questions are enough. Just as every person and every small business is different, every business relationship is unique. And, as such, the partnership agreement should be tailored to meet the specific needs of the collaboration at hand. Taking time to develop a partnership agreement up front, helps keep a partnership strong over the long run.

40 Years and Thriving - A Conversation with Mike Chiumento

BY MEREDITH RODRIGUEZ, FREELANCE WRITER

In 1973, Mike Chiumento was only two years out of Stetson Law School when he left a Volusia County law firm and planted roots in Flagler County by starting his own firm, now called Chiumento Selis Dwyer. 

Last year, the firm celebrated 40 years in business – a major milestone for any business, especially one that planted roots so early in a fledgling community.

In the early 1970s, Mike was ahead of his time – a pioneer of sorts. When he arrived, Flagler County had really yet to be discovered. There were only about 6,000 residents countywide. There was not even a post office. There were no traffic lights, only one elementary and one high school. The only way to cross the Intracoastal was a draw bridge in Flagler Beach. There was no exit off I-95 to enter Palm Coast and the only way in was Old Kings Road South and Palm Coast Parkway West, which was then a one-lane dirt road leading to US 1.

Mike pictured in front of his moody blvd office

This was a time before a gas station opened on Palm Coast Parkway and residents kept five-gallon gas cans in their garages. According to Mike, the pioneer spirit flowed through the area, creating a sense of community that could only be found in a town so small.

michael chiumento showing off his kiwanis award.

“We were a very close-knit group, all in the boat together,” he said. Mike and his family lived in the 75th home built in Palm Coast, located on Cooper Court. He found an office for his new law firm in Flagler Beach, located in what is now Z-Wave Surf Shop on A1A. Later he moved to Moody Boulevard. In 1986, the firm built an office building on Old Kings Road North in Palm Coast. During that time, Mike’s son, Michael III, joined the firm in 2001.

In 2009, the firm took the plunge as one of the first businesses to move to Town Center, where their windows overlook Central Park. While the construction in Town Center has slowed, Mike still sees the development for what it is meant to be.
 
“I still believe Town Center to be the heart of our community and I have faith in its growth,” Mike said. “We feel it is the perfect place for our firm, at the hub of Palm Coast.” While the past 40 years have been exciting for the law firm, it is clear to Mike that four decades in business is no small feat in any industry. Just as most of the Flagler County community faced challenges during the economic downturn, so did his firm.

““I still believe Town Center to be the heart of our community and I have faith in its growth,” Mike said. “We feel it is the perfect place for our firm, at the hub of Palm Coast.” ”

He credits his great staff, many of whom have been with them for 15 or 20 years, and some strategic adjustments, including broadening their legal services, for their ability to recover. The firm currently has eight attorneys and 11 staff members. They now offer personal injury law, bankruptcy law, real estate law, tax law, wills, trusts and probate services, commercial litigation, business and corporate law, land use zoning and development, construction, government practice, criminal and elder law.
 
He also feels the firm’s commitment to the community has allowed them to plant such strong roots in Flagler County. Mike and Michael have both served as president of the Flagler County Chamber of Commerce and served on a variety of other community boards. “Through our community service we have met so many wonderful people, giving us the ability to keep a finger on the pulse here,” he said. “I believe that as long as Flagler County is doing well, our business is doing well,” he added.

Over the years, the firm has also served as legal counsel to the City of Flagler Beach, East Flagler Mosquito Control District, the Town of Beverly Beach, and the Town of Bunnell. It also served as Flagler County School Board Attorney for more than 15 years.
“I’m proud of the firm, what it offers and how it has grown,” he said. “We are truly a community law firm,” he added.

After so many years building its reputation and breadth of clients in Flagler County, the firm recently celebrated crossing county lines into Volusia County. In April 2014, they opened a branch office in Ormond Beach, which will allow their attorneys to meet with Volusia County residents closer to home. They also offer appointment-only services in Daytona Beach. 

“While our roots remain in Flagler County, our clientele is growing in Volusia County and we decided this was the right time to expand our office space and improve our presence there,” said Michael Chiumento III, the firm’s managing partner. “We look forward to also being involved in the Ormond Beach business community and enjoying all it has to offer.”