Business Start Up Tax Help

[VMS]

Virtual Managed Solutions is the name of our new business. We are based in Northern Maine, comprised of the ATX employees who were laid off back in December. Our business is offering remote IT services to Tax and Accounting Offices.

We have 23 computer technicians that we want to hire. Would it be more beneficial to hire them directly as employees or to go through a PEO company (staffing agency).

Also if anyone is familiar with Maine taxes. Do you know of any tax benefits for companies located inside a HUB Zone.

Also if anyone has a moment, we would appreciate some feedback on our website which is www.virtualmanagedsolutions.com. Any advice or suggestions you can offer would be greatly appreciated.

Thank You

Beth Boddy
Virtual Managed Solutions
1-866-674-4867

[Brad Imsdahl]

Normally, we do not allow new posters to post links on our website or advertise their business.

I am making an exception for you. I have a soft spot in my heart for employees who lose their jobs because some big corporation came in and bought their company.

[JohnH]

Brad:
I applaud your decision to make an exception in this case.
This is a fine group of dedicated people who didn't deserve the shabby treatment they received, and I wish them the best in this endeavor.

[VMS]

Thank You

Thank You for the support. We needed to try to find something to do, 5 plus years of supporting tax software is not necessarily a skill that can easily transfer to something else in the job market of our area.
But I would appreciate any suggestions anyone out there would like to offer on our services, website etc...

And advice on the Staffing Agency would be very helpful, I've been struggling going through the different offers and plans, and this is very new territory for all of us...

Thank Again,

Beth
Virtual Managed Solutions

[DaveO]

I can't comment on Maine tax issues

But can comment on employee staffing issues. They are appealing in a startup because you can "try before you buy". If someone doesn't work out you can try another. Try to get a work to hire clause in your agreement so after a time 6 mo to a year you have the option of hiring the person out right.

On the downside it's harder to develop your own corporate culture when you have a mix of employees and temps working together. The agency will have its own priorities and you have yours. However a strong work to hire policy can overcome this. There is a Kawasaki plant here that hires production workers only through a staffing agency.

I would avoid the "employee leasing" programs as they make it hard to build team unity (imho).

I wish you the best of luck in your venture. The very best times in my career were spent with a fast growing start up company. We went from annual gross revenue of $250,000 to $23 Million in 3 years, from 5 employees to over 1500. Made the Inc 500 3 years in a row. Don’t think I have enough endurance or the desire to fight my way through airports to do it today buy it sure was a blast then.

I'm assuming that you have a good enough handle on the tax issues so that part isn't a factor.

[Black Bart]

Overlooked this post by

new company VMS, whose employees are those unfortunate former ATX support folks in Maine who CCH, after buying out ATX (the software I use), callously fired just before tax season while cyncially and simultaneously promising to maintain support at then-current levels.

Here's my chance for a rerun and also a second bite at the apple for their post.

Feb. 5, 2008

ATX Unimproves!

Just noticed this past weekend -- ATX support was closed. We had an EF problem come up late Saturday, called, and got a recording. Hours are now Monday through Friday from 8:30 A.M. until 6:00 P.M.

Last year they were open nights and weekends; staying up and staying right with me (well...sort of...I mean, at least we were on hold together). Now; the new, unimproved ATX; courtesy of corporate consolidator CCH. I'll bet it went something like this...

New CCH CEO: Okay -- where can we cut?
Former ATX tech support manager: But...you recently stated, very publicly I might add, that you were committed to providing the same level of service that we did.
CCH: I am, I am. But your support was just so-so anyway, wasn't it? We'll continue that with a few minor adjustments.
ATX: Such as?
CCH: Well, there's fifty to a hundred techs up in Maine on the corporate udder -- cut 'em loose.
ATX: But those are experienced and knowledgeable people; it'll take months to break in newbies. Tax season's right around the corner and --
CCH: Look, we've already got their money -- that solves 99% of our problems. As to theirs, you already had 'em used to an hour on hold, right? Okay, now they hang on for two; so what? It's not a perfect world. Besides, who'll miss people from...what is it?...Maine? Where's that at, anyway?
ATX: What about support hours?
CCH: Nine 'til five. What about them?
ATX: Normally yes, of course, but during tax season -- are we open nights and weekends?
CCH: The stress of extended hours is a major factor in employment-related accidents. As a highly-regarded and responsible corporate citizen, CCH is committed to a safe working environment. We feel that enforced prolonging of the intense concentration required of technical support personnel tends to exacerbate rather than ameliorate workplace demands and contributes to on-the-job injury. While they may simply be keyboarding, nevertheless, we are unwilling to expose our employees to unreasonable risk. Therefore the board has issued a directive to sunset prior time scheduling.
ATX: Say what?
CCH: No overtime!
ATX: But...my God...they'll throw fits...they can't be working like dogs for all hours while we're off snoozing, lolling around, strolling in the park, whatever...this is their time of the year; it's extremely important to our customers. These 3 1/2 months are a financial make or break for tax people. They need our help, sometimes desperately, and you pledged to give it to them -- in exchange for a pretty hefty fee, I might add. We can't just give up; we can't just throw up our hands and walk out of the office as if everything's hunky-dory and it's a normal work week. You made a lot of promises to these people, both express and implied and they've supported this company for years with their money and their loyalty. What are you going to do for them?
CCH: Look, if they complain too much we'll retaliate by shutting off that uh...that uhhh... whaddayacallit...the Knowledge Base. Geez, what a corny PR name -- anyway you closed down their ATX board and got away with it, didn't you?
ATX: This is different! A message board is one thing; real support from a real tech is another.
CCH: Oh alright -- you hicks from the sticks are a major pain, you know that? Got any relatives in Maine? Okay, okay; throw 'em a bone -- make it eight-thirty 'til six.
ATX: Well, that's not much; just a token, really. And if it's not enough?
CCH: I'll call India.