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Question:

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According to the definition of "A troubled business is an enterprise that has been in existence for at least two years and has incurred a net loss during the 12- or 24-month." When is business considered opened? is it the time an enterprise was incorporated? or when the enterprise paid the first month's rent? or it is no considered opened for business till you have payroll and sell products? In my case the business was incorporated in Aug 2009. Planning and permits took till end of May 2010. First rent was paid in June but the business was open in July 2010. What date will I be able to use to determine the if the business has been in existence for two years?

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Answers:

May 22, 2012 22:06 Joseph Whalen

There is no simple answer to this. It depends on various factors. The TYPE of business matters. There is also a question of moving from planning into operational phases to consider. The answer might be different for a retail store vs restaurant vs factory vs a service business vs professional offices vs a commercial warehouse vs something I haven't thought to mention. I don't think that the money spent up-front just to get started (the initial investment) could be considered as "losses" in the absence of a mechanism in place to generate any "revenues". This topic is worth exploring further.

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