<p>As a self employed (home based business) how do you calculate your Net worth of Business owned?</p>
<p>Is being self employed a pit fall on the FAFSA?</p>
<p>There are a couple of ways to calculate your business valuation when you are self-employed. You can go to the college board site and download the business form from the CSS Profile and use that, it seems like a very safe and justifiable way to do it. Or you can calculate the resale value of your business, if you were to sell it today through a business broker, what would you get? I think it depends on whether you have a busines with a lot of equipment and valuable, tangible items or if you are more in a sales and service business where the value is the client book of business and goodwill.</p>
<p>Thank you somemom, I will go go to collegeboard.com. I am in the sales and service business so the economy has a lot to do with how I do. </p>
<p>I had a steady job that I was laid off from in August, so my 2005 income will be half of my 2004. Hope the colleges understand that as well.</p>
<p>In sales/service, if you don't have a lot of inventory & accounts receiveable, then your business may have a very minimal value..........a couple of computers that may have cost you $1-2k new, btu which are a basically valueless now, a desk, some office supplies, and a nice fax/phone copier.....$200-500 garage sale if you're lucky.</p>
<p>Then there is the value of your existing clients, do they produce an ongoing revenue stream you could sell to another person in your line of work or are they only valuable for potential future business.</p>
<p>I tried to look at it from the perspective of going out and getting a job and selling my biz, what would I get?</p>
<p>Keep in mind that CSS Profile school estimations may be wrong for those who are self-employed. Often many “business deductions” are added back in as income, so your income may be perceived to be higher than it is.</p>
<p>net price calculators may be very wrong for the self-employed, so beware.</p>
<p>This thread is eight years old and the information is from a time when the rules were different, before all the “no loan” programs began and before FAFSA did not require a business to be valued.</p>
<p>This thread should be closed and a new one begun with current information if someone has a current question.</p>