<p>I wish I would have asked this question before already submitting the CSS, but I know we'll be submitting it again, so having a better idea of a more accurate answer would be helpful.</p>
<p>One of the questions is "what is the market value of your business". We made up an arbitrary number... a total guess.</p>
<p>H's business is an intellectual business... no assets to speak of (a couple of computers and some office equipment, no land as he rents his office space), he has no employees, he has no contracts with other companies for business (each job comes to him one at a time and all clients are able to choose any company they want to do their business). H has a list of clients he has worked with before and could presumably "sell"... that's about it for value of his business I think. H's business value is essentially the value of his personal skills.</p>
<p>Any thoughts as to what would be a fair market value of the business?</p>
<p>There are a number of resources and calculators, many on the internet, that will help you value a sole proprietor business or an experienced CPA who has valuation experience can advise. There are a number of accepted methods for valuing a business e.g. if you wanted to get some financing, if you wanted to “sell” the client list, etc. There are many anecdotal reports on CC how various colleges have viewed businesses, most often it’s reported that the Profile colleges add back into income some expenses (if they are run through the business).</p>
<p>Annasdad, it’s more connected to “what” the business is and how you are structured (or not structured). If you use a Schedule C there are expenses that some of the Profile Colleges add back to income even if you put down that the “businesses” have zero value. There are also anecdotal reports on CC where some college “valued” the individual. I can’t remember the poster but she was quite upset that they had given her a value. Who knows the mysterious ways of private college finaid offices LOL. FAFSA only schools are very straightforward.</p>
<p>Mine is going to be zero also. I work out of my house on a 5 year old desktop computer. The contracts I have are work for hire agreements and cannot be sold to someone else.</p>
<p>I just said it might not make a difference if you put down zero. I don’t know what you and your wife do. That doesn’t mean everyone can put down zero. They will use the tax forms and make changes to income if they decide to…that has nothing to do with “valuing” a business.</p>
<p>Also my H is self-employed so I have read and filled in the Profile biz supplements.</p>
<p>^ I am asking for information/feedback/ideas, not looking for facts, as indeed, this IS CC. I am a gatherer. </p>
<p>I am not looking to make financial decisions… just looking for information best provided to CSS for financial aid. It generally looks like there is no clear answer and perhaps would be best managed with a phone call to the individual colleges. </p>
<p>I do appreciate the feedback and I do not wish to get involved with the turmoil that is happening on another financial aid thread.</p>
<p>For those who have provided feedback to the question, thank you.</p>
<p>I valued my business to what it would get in the market place if sold. The assets are over 20K but all depreciated and I would not get any money except for AR. Therefore, I put “0” which may not be correct. However, the school gets a copy of my tax returns and business returns which pretty much spells out details of the business.</p>
<p>^^Same here^^. My husband’s business is incorporated and he is the only 1099 contract “employee”. The business has no contracts that could be sold (no contracts at all right now), no income for the past couple of years and the only asset not fully depreciated is his 1998 Honda CRV. So for the past couple of years I have valued the business at the current Blue Book value of the car – last year I think it was $5000. The school does see the business tax return, and so knows that there is no income currently generated. We do not know how the school uses the info, other than they have met our full FAFSA “need” in each of the past two years.</p>
<p>I faxed the FA Office & told them my business had no value (cell phone & old mini van) and I provide support to a CPA. The FA Office emailed me and said they would not require me to do a Business Supplement on the CSS PROFILE. No assets in my self-employed business.</p>
<p>We own a business which requires a valuation to be done every year for the IRS form 5500. A seperate company does the valuation. Based on the valuation this year, our market value is in the negative figures. I put 0 for the value, but explained in detail at the end of the form.</p>