No matter how simple or complex your business, tax considerations are central to many important decisions: how you structure your business, how you pay yourself, whether to buy or lease office space and equipment, and more. In order to plan effectively, start by estimating your personal and business income for the next few years. This is important because tax-planning strategies that help at one income level may harm at another. Once you have an idea of what your approximate income will be, you can estimate your tax burden and determine strategies relative to:
While countless tax planning strategies are available to business owners, choosing the right ones for your situation can help you avoid costly missteps and missed opportunities. A professional experienced in the complexities of business financial and tax strategies and can serve as your “quarterback,” coordinating the advice from your other professional advisors, including legal, tax, and accounting professionals. This approach helps you align advice from various sources around your financial best interests, ensuring one-off tax strategies aren’t implemented at the expense of your overall financial goals. If you’d like to discuss your unique situation, give the office a call to schedule a no-cost business ownership consultation. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. |
Determining the best tax strategies for your small businesses
October 28, 2020