Bankruptcy

What Do You Call a Business that Loses Money?

By Joseph McDaniel, Esq.

That is, it might be a business that has been around forever, and has just experienced a short-term downturn in business volume and gross income. But if that kind of business gets more dough in the door, it's still party time!

Then you have a business that's been going for a full five years or so and the owners have been subsidizing it during each year of its young life.

What do you call a business like that?

A hobby. And a pretty bad idea, depending on the amount of money that the poor owners have been dumping into it to keep the business breathing.

What do you call a business where the owners have dumped in all the dough they could beg, borrow and steal, and the owners have only been able to keep the doors open by the simple expedient of not paying business-related taxes?

And those taxes will give rise to personal liability on the part of the business owners?

Well, you call that business a restaurant!

Just kidding.

You call it a really bad idea.

NOTHING IN THIS BANKRUPTCY BLOG CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY ATTORNEY WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on September 01, 2010 (boomark / email).