Forums: Discussions for entrepreneurs and small business.

Unfortunately the economy has taken its toll and I have needed to close a franchise I owned as a C-corp.  I now have about $350K in losses on the books. Luckily no banckruptcy and all debtors should be paid off.  I was planning on keeping the C-corp alive and somehow capitalize on the losses. i.e. turning vinegar into honey.

Hopefully the 1st $350K of my next businesses earnings will be 100% tax free.  Has anyone done this and come across any unexpected pitfalls? 

Whatever it is I do next will be completely different and will not be with a franchise.  Sucks when franchisor charges higher margin on product, collects royalties while your losing money.

Never again a franchise!

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Sorry to hear about the business.

You didn't mention it so I will point out that your losses can be carried back as well as forward.  That would be cash back in your pocket right now. This is an area that is fairly complex in tax law; including limits on how much can be used against income generated in a different operation. I srtongly suggest that it will be well worth the investment to discuss the strategies for optomizing the use of the NOL's because if you don't play it right you could end up leaving money on the table even if you have the business income that should let you use it. 

Good luck