Does anyone know how a bank account balance for a sole proprietor business is listed on CSS Profile? There are no employees so I’m thinking this year it is excluded from the FAFSA, but would it be included in the current market value of the business in the Profile? The business has no real resale value, but I’m thinking this MUST be included in the Profile. Anyone with prior experience on this?
I am not a sole proprietor but I do own 50% of an S-Corp. It is an engineering firm so we do not have much capital (inventory, equipment, etc.) So not identical but maybe similar enough to give you some guidance if you do not get much feedback. It talked to a specializing in college planning, applications, and offer reviews. He said to treat the company as if you were to walk away from it (as opposed to 3-5X historic EBITDA), which for an engineering firm (like your company) has no real resale value. So we placed the value of the company as cash on hand plus the depreciated value of our equipment (mainly laptops, printers, software licenses, etc.). I believe that it is legitimate and defensible.
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If your screen name is your real name, you might want to consider changing. You will probably have to do the email contact option.
@CC_Jon can you help?
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Done. Great idea. Thank you.
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I agree with the approach stated above. I also think it’s reasonable to subtract known liabilities that would need to be paid if you sold or walked away—outstanding debt, lease agreements, insurance, etc.
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