Another Cash Flow Sale at BB! (from Nevin)

EDITED ON 4/22/22 TO ADD: SALE IS ENDING SOON!
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Since many of you create reborn dolls as a business, I don’t mind sharing the business reasons behind this cash flow sale. The knowledge might help you at some time in your business.

But first… and for the next few days…

ALL vinyl kits 50% OFF!
ALL bodies 50% OFF!
Additionally, we are releasing our SILICONE Steven Sleeping today, at only $295! (regular $595).

Now, for the business reasons…

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Until the 2021 tax year, our company (as an LLC) has been taxed as a “Partnership”, with Denise and myself as the “Partners” (Nevin Pratt and Denise Pratt). But beginning with the 2021 tax year, we switched to being tax as a “Corporation”.

What does that mean?

It means that for 2021, the tax withholdings were paid under the “Partnership”, but are now due to the IRS under the “Corporation”. And since the election to be taxed as a “Corporation” just happened, that means that there have been NO corporate taxes withheld and paid during 2021. Of course, that also means we overpaid as a “Partnership” and will get a refund there, but that doesn’t help our corporate tax return. Plus, that refund won’t come until later.

We need to come up with a ton of money NOW for the corporate return.

When I asked our accountant if this issue was avoidable, he said “no, because if you had tried to pay as a corporation before the corporation election was completed, the IRS would not have known what to do with the money”.

Thus, this problem was unavoidable.

I think it sucks, but there isn’t anything we can do about it. It is just a curious quirk of the law.

And yes, it means I need to generate a ton of cash right now, for Uncle Sam (the IRS).
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So, to repeat…

ALL vinyl kits 50% OFF!
ALL bodies 50% OFF!
Additionally, we are releasing our SILICONE Steven Sleeping today, at only $295! (regular $595).

Sale will last until the funds requirement have been met.

Nevin Pratt, CEO
Bountiful Baby

10 Likes

We are glad to be of service and help you do your duty for Uncle Sam :smiling_face_with_three_hearts:

2 Likes

I’m just glad to know that all of the sales weren’t a sign of bb going out of business as some of us thought they might be.

4 Likes

Nevin, thank you for sharing with us.

2 Likes

Thank you for sharing this information.