Bay Yacht Agency Annapolis MD

Business Plan

Confidential page. This page will give you access to some necessary resources, and contains a form which you can fill out. This form will be used together with additional information to present a business plan, and prepare you for an interview with a CPA.
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INDEX this page:  

Discussion, right--All info is on this page-scroll, or use index, below

  1. Figure your tax bracket
  2. Submit your financing (if you want a detailed plan
  3. Fill out the form
  4. See additional Support information.

As easy as 1,2, 3. Get your business plan.

Figure your tax bracket!

 Click here. If you're not sure of your marginalTax Calculator tax bracket--this simple Java script can help. It doesn't save any information and is supplied by a third party. Find your marginal rate now, and then apply as much of theĀ  tax advantage as you like to watch your marginal rate reduce and the effect on reducing your tax liability. For example, say you have $400,000 in income with $100,000 in deductions currently--make the calculation, and then increase your deductions $100,000, $200,000 or more. You can print your results and they will look something like this:

Now you can qualify for writing off 50% of your boat, plus qualify for the 179 expense allowance of up to $250,000. Use as much as you need, and then use the rest of the tax advantages over subsequent years.

2. If you want the detailed business plan, fill out the finance application, otherwise skip to section (3) and just fill out the form.

 If you haven't yet filled out a finance application, do it here. NOTE: Do not contact a marine finance company without first talking to us.

You should also send/bring in tax returns as indicated.

3. Fill out the form...

and indicate your marginal tax bracket and whether you want a summary or detailed plan. If you have questions, just email Eric Smith with your cell number and a convenient time to get back in touch.
Go right to the Request a Business Plan" form,
Contact BYA live... 410-263-2311

1-800-YACHT20

Getting the business plan.

BYA is a national sales partner with: Logo

and Let's Go Cruising, on the Chesapeake.

Find out how the latest tax laws will effect you in our program...

A quick review of where you are with our BAB program...

You should have read our basic page that explains the program in general. If not, please go to:

http://www.bayacht.com/invest.htm

If you wanted to review some sample, summary business plans (or want to review them while you're waiting for custom information), please go to:

http://www.bayacht.com/resource/password/Ab11115.html

This page gives you links to a number of simple, summary business plans, as well as to a discussion of the tax benefits available.

The Next Step...

Review any of the white papers here, or go on to the "Request a Business Plan" form, below...

If you aren't sure of your tax bracket please go to the left column and figure out what that might be Figure your tax Bracket--or give me a call.

What do you want to do...

1. Get a custom summary business plan, based on the information you supply on the form below.

2. Get a detailed business plan with monthly and annual cash flows, exit strategy, the works--customized for you. In order to provide this depth of information, I need the form filled out completely and I need you to send in a finance application with your tax returns.

You will be given the choice of option one or two when you fill out the form.

Want to review the boats available? Go Here.

Eric Smith, President, welcome!

  Return to index

White papers--supplementary information.

Go right to the Request a Business Plan" form,
1. The difference between a charter company plan
and a management plan like BAB.  Click here.
2. An overall review of our program in some
detail. Click here. Includes equipment list for different boats.
3. Why have a home based business? Click here.
4. What you need to know about the tax aspects
of this program. Click here
5. Even better--information for you and your tax advisor to direct you right to what's needed and what's different. Click here

Do you know your marginal tax bracket?

If yes,

Go right to the Request a Business Plan" form,

If no,

Go to the calculator, (top left--this page) or at least look at last years taxTax Calculator returns. If nothing else, what was the tax bracket you were in for Federal taxes? Add your state bracket. Now how much income would you have to offset to drop you into a lower, more comfortable tax bracket.

In the form below, enter your marginal tax bracket (6), and the first years deduction (22) that you want.

Again, if you want the most detailed business plan, I need the information from the financing application, and your tax returns--go to that information on this page here.

Request a business plan

E-mail address (*)
First Name (*)
Nick Name 
Last Name (*) 
Spouse/Partner
Primary Phone: (*):  Work #  or cell if possible
(CONTACT) 
Preferred Phone listed above (*):
Other Phone:  
Other phone is:
FAX  

Plan I want: Summary plan, I will submit a finance application later. Or Detailed plan--I am submitting finance application now. Both are custom. The detailed plan includes monthly and annual cash flow and complete tax information, the summary plan includes annual numbers, averaged. Both will be customized based on the information you provide below.

Plan I want now

Boat information: (See the boats here)

Bay Yacht Agency-sailboats :Jeanneau monohulls (36, 39i, 39DS, 42i, 42DS, 45i, 45DS, 50i, 50DS, 54DS) and Fountaine Pajot Catamarans Sail: (36, 40, 44, 48, 60) For our program, we can also work with: Selene Trawlers (36-64')and Jeanneau Power boats (32, 34, 36, 42, 46, 50) but talk to us, before you talk to any other dealers.    Fountaine Pajot Power Cats (35, 46, 55).


NEW/USED  (*) TYPE(*) 

Size range interested in.(*) See list above, or go to our New Boat Page.
Describe (Brand/model): Be specific! Jeanneau 42DS Fountaine Pajot Sail Cat--44'

Time frame--when do you want to start using the boat:

About my financial status (Please try to fill in yellow shaded boxes!)

1. My income pattern now
2. My recent past income pattern
3. Anticipated future income pattern
4. Do you have any other active business activities/income, Describe (Rental property, own a business, etc.)
5. Spouse/Partner who might contribute-Discuss.
6. Tax Info. Federal and state. Your estimated tax bracket. See Calculator, right. Calculator will take you off our site. Close page after calculation to return. (Need Java installed) BETTER TO ENTER YOUR BEST GUESS, THAN NOT TO ENTER ANYTHING. % Federal, generally 20-38% on average. (Marginal) You should also add your state bracket to this (generally about 5%) Or-- Calculate your tax bracket with this handy calculator.
% Average Tax Bracket, including State.
$ Your taxable income last year
 % Your state tax as a percent of total.
7. Ever been bankrupt  Yes/No
8. Ever been Audited   Yes/No
9. Total Purchase price: (From Proforma, or est.)
10. Are you considering obtaining Marine Financing? Note: This keeps your other lines of credit available-boat is collateral. Generally simple interest, no-pre-payment, similar to home mortgage. Yes/No
11. A. Are you a U.S. Citizen?
B. Do you pay U.S. Taxes?.		 U.S. Citizen. Yes/No U.S. Taxes? Yes/No

12. Downpayment:		 (% or Amt.--Typically 10-20% down req.)
13. Term of loan in years: (10, 15, 20, ?)   20 is typical-you can pre-pay with no penalty.
14. Interest rate (Form 6.75%) % If uncertain, use 6.75%.
15. Approximate, Date of first payment: Form 10/01/08
16. What area would you like to use your boat in, principally, during the program.:
17. Use pattern (This is confidential):
18. Exit Strategy:
19, Type of business, if you know (Most people set up an LLC):
20. First year plan
21. What date did you want to put your boat in service (sign the management agreement): This will be the first year you get tax advantages. You must have settled on the boat. Normally date when you expect to settle on the boat...(Can be before, or after actual delivery!)
22. How much of your income do you want to offset in the first year?  You can qualify for up to 50% bonus depreciation and $250,000 in 179 expense allowance. You could enter $25,000, 100,000 up to $387,500 on a $500,000 boat -- conservatively, a rule of thumb would be to enter up to 60% of the boats price as a maximum number--if you think that you can use that much. It's also o.k. to enter $0 and simply spread your deductions out more evenly. %   of boats price.  For example from the tax table:

33% on the income between $182,400 and $357,700; plus $42,755.00  If you had taxable income of $282,500 you would be paying 33% tax plus $42,755. If the plan got rid of $100,000 in taxable income, you would not only not pay taxes on that amount, but you would drop into the next lower bracket. And don't forget, with state taxes generally based on Fed taxes, your rate may well be even higher.

23. Taxable income from last year. (Or estimated this year.)
24. What is your Liquid? (Before you put up the boat payment). What total do you have in savings, stocks or other assets or financial instruments that could be liquidated rather quickly. --Depending on what financing we get for you, you shouldn't need to use more than about 10-20$ of the boat's price--but there are several reasons for needing this information.

The rest of the form is optional, but helpful. To submit the form now, click here (Or scroll down).

Please offer a further, brief description concerning your business plans:

1. Type of business, if you know (Most people set up an LLC):
2. Where would you charter your boat? In second box, choose combination if you think that you might-follow-the-sun. Tell us more in the final box. Please give us some idea--don't leave blank! FTS

3. What other business uses would there be.
4. How active would you be
5. What kinds of ways would you participate-list all that apply. (Hold down control key for multiple selections.)
6. What is your primary goal (Choose one)
6A. What goals appeal to you most Choose multiple
7. What is your exit strategy most likely to be.
8. When do you plan on retiring?
9. First year plan
10. About my retirement plans
11. My primary home port for the first few yrs.
12. Use after the program
The type of charter business you would set up.
A simple bare boat business is most common. (Bare boat means without a captain, or captain hired separately. This is the most common way for this type of business to be set up.)

My status and understanding of business

1. Have you or do you own a business or an interest in a business.
2. Do you have an understanding of depreciation and business issues?
3. Do you generally understand how the tax law would affect your setting up this business?
4. My philosophy regarding taxes
5. How do you feel about aggressive tax avoidance?
6. How do you feel about the statement: All should pay their fair share.
7. My life Philosophy
8. Who prepares your tax returns
9. Is he knowledgeable about the details of setting up a business?
10. Would you want to consult, or have your advisor consult with our CPA

Your understandings so far...

This will help us to know where to concentrate our discussion and what further information that we can send that might help you.
Do you understand how depreciation works
The 179 expense allowance
Tax advantages in general
Why you need to be an active participant and how to do it
The other advantages of a corporation
Know what your marginal tax bracket is and how to calculate
Understand why to set up an LLC or Corporation
Do you know what recordkeeping is required and how to simplify it
How to avoid hobby loss rules
What area do you need the most help with.
Choose all of the areas that you need help with
Where will you get your information?

Please understand: You don't need any great understanding about any of this. A competent advisor can set up everything for you once they understand your goals and, with your tax returns, your financial situation. Believe me, we can make this easy, or, we can make sure you understand everything if you're a hands on person.

RE: the terms of financing for the business plan--fill in what you know or prefer

Now, enter any other notes here, and submit the form. We'll be back to you, normally within 24 hours with a business plan, and if you've indicated that you want to talk to our tax advisor, she will contact you for an appointment.

If you would like to meet with a recommended tax advisor--Approximate time that you would like to meet with referred tax advisor (During week, weekend, evening--give date/time if possible)

Other information you would like to share.

Disclaimer--By submitting, you indicate that you understand.

Confidentiality statement--by submitting you agree...

IMPORTANT: If you get a message that you didn't fill out a required field, hit your return button and scroll up to find the missing information--it will be in a field marked with an "*"

You might want to read the What Next info below, before you hit submit and re-decide whether you want the  more complete information or not... the "Plan I want" box above.

What next...

If you do not send in a finance application, you will receive a rather specific, summary business plan based on the information that you provided.

If you did send in the finance application, we will provide a more detailed plan showing first year month by month cash flow and very detailed information. We will also supply more complete tax support information designed so that you can easily understand it, but also put together in such a way that it can answer questions that your tax advisor may have.

In both cases, we will also provide a proforma with a suggested list of equipment for the specific boat of interest, and an option sheet showing what's available for that boat.

After receiving that information, we will talk and we can run various what-if scenarios, and provide access to tax advisors and other experts as needed. At that point, we can enter into a "Hull Reservation" with a small refundable deposit which will lock in the prices quoted, get finance approval and to hold a specific production slot for you. This simple agreement holds your place in production and in our fleet for you, while you get the information together to make a final decision--generally for about 2 weeks.

If you have any questions, please call our office at: 410-263-2311. If you have questions about

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 Bay Yacht Agency, "On the harbor, Annapolis"  Since 1972

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Call, Sales/Management  410-263-2311

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Bay Yacht Agency Group

Power/Sail/New/Used/Charters
On the Harbor in Annapolis
326 First Street, Suite 29
Annapolis, MD 21403 (map)
Sail/Cat Trawlers: (410) 263-2311

Power 410-263-2312 or Cat Trawlers .
(410) 263-2964 (fax)
info@bayacht.com

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Let's Go Cruising 410-263-1818

info@letsgocruising.com

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