Equity, also known as net assets, is a finance term that refers to the amount of money that a company’s owners have invested in it. Also referred to as “owner’s equity” and can include non-monetary assets such as time, energy, and other resources. 

Equity is also defined as the difference between your company’s assets and liabilities (what you owe).

A company with strong (positive) equity is appealing to potential investors, lenders, and buyers. Investors and analysts also consider your company’s EBITDA, or earnings before interest, taxes, depreciation, and amortization.

The tax laws are very complex. Our short blog articles cannot cover in full all the nuances of the rules. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out on your own. Consider giving this marketplace a try by posting your project and signing up here.

If you are a licensed tax professional and are interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.