Tax Planning – Strategies for Businesses

CPA services provided by Contryman Associates, P.C., Investment Adviser services are offered through Contryman Wealth Advisors

Description:
By meeting with Contryman Associates tax professionals throughout the year, we can assist you with strategies to capitalize on provisions of current tax laws that may minimize taxes on your personal and business income by taking advantage of possible deductions, credits, and exemptions. We can also advise against unnecessary business and financial risks taken in an attempt to minimize taxes.

Benefits:
Because Contryman tax professionals also have broad business knowledge, you may get more than just an accurate tax return – you may benefit from our sound business advice, as well. We can help you determine the appropriate legal structure for the business to minimize taxes and owner liability. This involves choosing the type of legal entity to own and operate the business.

Businesses often overpay taxes because of missed tax deductions. We can advise you on allowable deductions. Some planning considerations for start-up businesses include the following:

  • Front-end tax planning is critical for partners and S-corporation shareholders.
  • Related party transactions can be structured with an eye toward minimizing FICA and self-employment (SE) taxes.
  • Investigation and start-up expenses should be identified and properly handled.
  • Several depreciation alternative elections and cost allocation decisions should be made which can significantly affect tax liabilities.

By meeting with us throughout the year, we can help you maximize deductions for purchases you may make, including advice on when it may be best to make capital purchases. We can tell you which assets may be eligible for “bonus” depreciation, which purchases may be expensed and which should be depreciated. We will also help you determine the inventory method that will be most beneficial to your business.

As the owner of an unincorporated business, you may be able to hire your children and fully deduct their pay. We can advise you on the tax benefits of this strategy and how to implement. If you are self-employed, you may be able to deduct health insurance costs for yourself, your spouse, and your dependents and you may be able to deduct a portion of the self-employment tax that you pay on your income. You may also be able to deduct home office expenses. We will help you determine this deduction and the expenses that are allowed.

Note that the examples mentioned here are only a very few of the tax planning strategies that may apply to your situation to help reduce your tax liability.

Process:

  • Meet with your Contryman tax professional
  • Discuss your business operation including the structure of your organization, current and planned purchases, number of employees, inventory set-up, insurance for yourself and your employees, and any other related information
  • The Contryman professional will review your past tax returns and supporting documentation to learn more about your business and determine possible additional deductions that may be taken and tax credits for which you may be eligible
  • We can file amended returns if additional deductions are determined
  • We can help develop a plan for your business designed to minimize taxes on your personal and business income
  • We can meet with you throughout the year to advise you on financial decisions that may affect the taxes you pay

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