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Tomorrows Tax Day, Don't Pay, I'm Certain

Mon, 14 Apr 2008 11:50:00 -0400
“Certainty? In this world nothing is certain but death and taxes.” Except for not patenting electricity Benjamin Franklin is usually correct.

In regards to the life cycle of your web hosting company his timing is impeccable.

Your company should do everything possible not to pay taxes. You can either give it to the government, great benefit there, or grow your business and hence the economy. Hire more employees (let them pay taxes), spend money on capital equipment and that whole channel line pays taxes. But remember you don’t want your company to pay taxes. Not on April 15th.

Smart and profitable industrialists, hopefully like you, avoid taxes. That is one of the commanding reasons for acquiring a business. Most web host firms have lousy balance sheets. They have depreciated the assets and have nothing to shield profits, they pay taxes.

I always find it sort of magical that you can acquire an asset (buy a company) that was fully depreciated yesterday, put it on your balance sheet today (stepping up the assets as accounts say) and voila! you have a complete new depreciation schedule protecting your cash. Sort of like asparagus cropping up in the spring, where did that come from?

So you say…“I am profitable but don’t have any money to make an acquisition Tom”. Even a better reason to take out a government loan. That is exactly what not paying taxes is, a differed no interest loan from the government. And if you screw up sort of risk free.

Now Ben was correct…nothing is certain but death and taxes. In your case the death of your company. Don’t frown, this is just the end of the investment period…maybe the buyer of your company will keep the name, who cares?…your out. Now you want to pay a lot of taxes, big time taxes. You have taken those government loans and parlayed them into your success. As Franklin said taxes were certain, he just did not state when.

More about Tom:

New Commerce Communications

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Previous Posts

Layered Tech Ready for Integration

Tue, 15 Apr 2008 00:00:00 EST
April 15, 2008 -- ( <http://www.thewhir.com> WEB HOST INDUSTRY REVIEW) -- The prospect of integrating its acquisition, however, raises the specter of some of the most notable failures in the hosting business of the last year. But Layered Technology says it is prepared for what follows.

What is Domain Kiting?

Fri, 09 May 2008 09:33:52 +0000
There are often odd terms thrown about in the web hosting and web development worlds that just don’t make any sense the the common man on the street.  Phil drops me in an e-mail asking…
“What is domain kiting?  I have heard it is related somewhat with domain deletion and AdSense from Google.  Do you ...]

Zoho Doubles Customer Count in 5 Months, Racing Google Apps to 1 Million User Mark

Mon, 05 Mar 2007 17:20:00 -0400

When I first met Raju Vegesna at the Office 2.0 conference last October, Zoho had just passed the 100,000 user mark. Less than 5 months later, Raju says they're closing in on 200,000.

While Nielsen/NetRating (PDF) claims that Google has a 92% share of the web-based productivity apps market, Raju points out that Zoho and ThinkFree together attract as many unique visitors as Google Docs and Spreadsheet. (See Ismael Ghalimi's elaboration on the user count discrepancy.) 432,156 users visited Google Docs last December; that's 3% fewer than in October. Zoho, on the other hand, has undergone rapid growth (as CEO Sridhar Vembu puts it, "we try harder") - and hopes to beat Google to the 1 million user goal.

By the way, when Raju and I were introduced, a colleague of his described him as Zoho's PR strategist. I just found out that in addition to attracting favorable coverage in every possible media outlet, he was also in charge of company's data center infrastructure. (Raju recently managed to offload this responsibility.) He insists it wasn't as much work as it sounds, because Zoho's apps run on a self-healing grid that's attached to a pool of standby servers. If any application server dies, the appropriate code will automatically be deployed on one of the standby machines. The failed hardware can be swapped out whenever someone has time. As for customer data, everything is replicated three times and backed up offsite.

(Zoho's Rackable servers are colo-ed at Savvis and Equinix. They're in the process of migrating from 32 bit to 64 bit machines with dual core Intel Woodcrest processors and 8 to 16 GB of RAM. The new machines arrived last week, but won't be deployed until late March. As Google's recent hard drive study shows, a longer burn-in period can help weed out faulty hardware.)

Zoho's HR processes are similarly efficient. Adventnet, Zoho's parent company, has 600 employees (and counting). Whenever a new Zoho product is conceived, a dedicated team of 2-6 developers is allocated to the project. Having rapid access to talent gives Zoho a tremendous competitive advantage. Forget Google Office; the loooong list of ideas and partnerships that Zoho's in the process of implementing might coalesce into Zoho Life: single sign on access to an ever growing suite of fully integrated web apps that do... everything.

Keep an eye on Zoho; they're setting the standards for delivering a seamless SaaS experience. And sign up for an account if you don't already have one. Lastly, stay tuned. They've got some big announcements on the way.

Go to Hostican.com

Missions Alive

Fri, 18 Apr 2008 09:50:10 -0500
The ministry of Harvey and LeAnn Waddelow, Missions Alive exists to motivate, educate, recruit, and equip churches and individuals for worldwide Christian missionary service.


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