Small business and corporation tax planning can be a complex topic. Here are some general tax planning strategies that small business owners can consider:
- Consider a Tax Status Change: Small business owners have several options for structuring their business. They can operate as a sole proprietor, partnership, limited liability company (LLC), S corporation or C corporation. Each of these options has different tax implications.
- Leverage Tax Credits: Tax credits are even more valuable than tax deductions because they reduce your tax liability dollar-for-dollar.
- Defer — or Accelerate — Income: Depending on your business’s financial situation, it may make sense to defer income until the next year or accelerate income into the current year.
- Set up — or Contribute to — a Retirement Account: Retirement accounts such as 401(k)s and IRAs offer significant tax benefits to small business owners.
It's important to note that every small business is unique, and there is no one-size-fits-all approach to tax planning. Consider consulting with us a qualified accountant a financial advisor who can help you develop a customized tax plan that meets your specific needs.
Lastly, a tax deduction is a deduction that reduces a taxpayer’s tax liability by reducing his adjusted gross income and potentially, taxable income. The more deductions we can find, the higher your potential for lowering your tax bill.
We want to make sure we minimize your tax liabilities and maximize your return. Let us help you organize your finances and make the tax reporting more efficient.
