Success story: LaBARGE Products Inc.
LaBARGE products meets needs of U.S. military with assistance from MO PTAC
When Charlie LaBarge founded his namesake company 35 years ago in St. Louis it was as an industrial rubber products distributor. As time marched on, so did the size, goals and market of LaBARGE Products Inc.
Charlie LaBarge founded the St. Louis-based manufacturing and distribution company that bears his name in 1973.
In the 1980s LPI began supplying the Department of Defense, and grew in fulfilling various needs. With this growth LPI concentrated on contract manufacturing of component parts for fuel and water related needs.
By the early '90s government contract work contributed a larger portion of the company's business. LPI filled some big orders with the advent of U.S. military operations Desert Shield and Desert Storm during the first Iraq war.
"In just under 160 days we started and completed over 66 prime contracts with the Department of Defense," recalls Charlie. During that stretch LPI shipped more than 250 tons of material and equipment. More than half of that material was shipped via airlift to Saudi Arabia.
By the late '90s, LPI had evolved into a prime contractor of U.S. military support systems such as: refueling and water supply equipment, hydraulic power systems, air transportable hospital water distribution systems, portable latrine stations and C-17 engine maintenance platforms.
Today the company's government contracting efforts serve the Army, Navy, Air Force and Marines with ground support equipment and fuel and water systems, including trailers, transport modules, anchors and hose reel systems.
Visit www.missouribusiness.net/ptac/success/labarge.asp for the complete story with additional photos.
Banking considerations for technology companies
"Risk. Innovation. Deal Term Sheets. Flipping the Business." High-tech words and phrases like these describe the very essence of hundreds of technology companies in the state of Missouri.
For traditional business banks, terms like "conservative" and "risk-averse" are more appropriate terms…a profile that is very different from the energetic technology companies and all of the trappings of entrepreneurship.
Commercial banks usually loan to companies in established industries with long track records of profitability and strong financial statements. However, if you own a new high-tech company and are not yet generating a profit, most banks probably won't talk to you. So where is the middle road for Missouri-based technology companies looking for a banking partner?
Continue reading about banking considerations at: www.missouribusiness.net/docs/banking_tech_company.asp
Business going green
Can we green our way out of a recession?
Two new national best sellers make strong arguments that the only way to reverse the current economic spiral is through investment in green technologies and jobs.
Thomas Friedman's Hot, Flat and Crowded and Van Jones's The Green Collar Economy: How One Solution Can Fix Our Two Biggest Problems both claim America can be a global leader by focusing on vast, untapped capabilities in environmental restoration, solar, wind, biofuels, geothermal and energy efficiency.
If President-elect Obama fulfills his campaign promises, new federal dollars in the form of loans, grants and incentives will be applied for training and hiring people in green jobs and clean energy.
Even without this infusion of funds, there is some evidence that green businesses are faring better in this economy for two reasons: many green businesses have taken steps to dramatically reduce waste (resulting in lower operating costs), and customers recognize a greater value in green products and services.
Continue reading about greening our way out of a recession at: www.missouribusiness.net/eac/green_out_recession.asp
Ask a specialist: Independent contractor vs. employee
Question: I have heard that if an employer requires and publishes a weekly work schedule—even though he calls the person who does the work an independent contractor—has made the worker complete an application for employment, requires the worker to take a drug test, and provides a company car and work space, the employer may be required to pay minimum wage for the worker's services. Is this true?
Answer: The answer is twofold. The core of the question is whether a worker is an independent contractor or an employee. It does not matter what the worker calls himself or what the worker is called by the business that uses the worker's services; the Internal Revenue Service determines a worker's status. Whether a person is an employee or an independent contractor depends on the facts in each case.
The general rule is that an individual is an independent contractor if the person for whom the services are performed has the right to control or direct only the result of the work and not the means and methods of accomplishing the result.
For example, an employee's work schedule can be set by the employer; an independent contractor's schedule is set by the contractor. Independent contractors must supply and use their own equipment when performing the work. Using company equipment could change the contractor's status to an employee working for the company.
Following are some guidelines the IRS uses to determine if a worker is an independent contractor:
Read the rest of this two-part response about employees at: www.missouribusiness.net/docs/ask_contract_employee.asp
2009 retail promotion calendar available
Plan creative promotions to energize sales
With the national and global economies in their current condition, retailers need to consider virtually every possible idea to promote sales.
To entice spending customers to their stores, retailers can link special promotional activities to events and themes indicated in the newly available 2009 retail promotion calendar, compiled by the Ohio Council of Retail Merchants. The calendar is available at www.missouribusiness.net/docs/retail_calendar2009.pdf.
For ideas on how to use the calendar for marketing, see the article on "Making the Calendar Work for Your Business."
Did you know...
...How many new jobs small businesses create?
Since the mid-1990s, small businesses have created 60 to 80 percent of the net new jobs in the United States, according to the U.S. Small Business Administration's Office of Advocacy.
In 2005 (the most recent year for which data are available) employer firms with fewer than 500 employees created 979,102 net new jobs, or 78.9 percent. \Meanwhile, large firms with 500 or more employees added 262,326 net new jobs or 21.1 percent. For an in-depth look at employment dynamics by firm size from 1989 to 2005, see www.sba.gov/advo/research/data.html#us.
...Now you know.
Last month: How important are small businesses to the economy?
Next month: How many people are employed by small firms in the United States?
IRS tax talk
Jan. 13 IRS Webcast to give small businesses head start on upcoming tax season
The 2009 tax filing season is right around the corner. The Internal Revenue Service's January Tax Talk Today (TTT) Web-based program, "Getting Ready for Filing Season 2009" gives small business owners a head start with a special 100-minute program at 1 p.m. (CST) Jan. 13.
Tune in to this extended program to hear TTT panelists discuss updates to forms, the latest tax law changes, common errors to avoid and IRS processing issues that will assist you in preparing your 2008 business tax returns.
Sponsored by the IRS, Tax Talk Today is a free, live, monthly interactive Web cast aimed at educating tax professionals and their business clients on the most contemporary and complex tax issues. They are encouraged to watch and submit questions.
To access the Web cast at no charge, viewers can register online at Tax Talk Today at www.taxtalktoday.com. They can view Tax Talk Today with Windows Media Player and Real Player. Both players are free software that may already be installed on your computer. If not, click the link for Installing System Software to view Internet Broadcast under "How to View" at www.taxtalktoday.tv/index.cfm?page=8.2114.
The following show, "Surviving an IRS Audit," scheduled March 10, also might be of interest.
To learn about the availability of IRS products and services, subscribe to IRS's e-News for Small Businesses. To see a representative sample and to start a free subscription to e-News, just go to IRS.gov at www.irs.gov/businesses/small/content/0,,id=154826,00.html, type in your e-mail address and submit.
IRS announces 2009 standard mileage rates
WASHINGTON — The Internal Revenue Service last month issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:
- 55 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2008-72 contains additional information on these standard mileage rates.
More information on IRS rulings and tax law is available in the IRS Small Business Resource Guide online at MissouriBusiness.net.
Send this newsletter to a friend
Visit www.missouribusiness.net/newsletter to read previous newsletters archived on our Web site.
For more information about doing business in Missouri, visit MissouriBusiness.net or contact one of our service centers.
Subscribe to this newsletter at www.missouribusiness.net/newsletter_sign_up.asp. Unsubscribe information is found at the bottom of each eNews letter. We will never share or sell your e-mail address to others.
