Too many small business owners are overpaying taxes by thousands of dollars every single year because they are missing out on the key tax strategies which are available to entrepreneurs to work with the tax code rather than fight against it.
Do you feel like you are missing out on the ‘secret’ tax strategies that other entrepreneurs are using to lower their taxes? I’d like to share with you my Tax Planning Framework, which we've used to help entrepreneurs lower their taxes and grow their wealth.
Here it is: First, Situational Awareness. That might not seem like a tax strategy, but it is the foundation of effective tax planning because applying tax strategies without first understanding where you are right now can lead to major errors in applying the wrong strategy. Creating a tax projection to first understand what taxes you are paying and why will then allow you to use the right strategies to address specific pain points.
Once you know where you are, you need to decide if you have the right identity structure(s). Should you be taxed as a Partnership, an S Corporation, a C Corporation, or a Sole Proprietor? Utilizing entity structures correctly is often the tax strategy that creates the largest tax reduction for small business owners.
Entrepreneurs frequently ask me “what deductions can I take in my business”, but honestly, that’s the wrong question. The question you should be asking yourself when you have a deduction you want to take in your business is how you can legally claim that deduction. Almost anything can be deducted if it is an ordinary and necessary business expense.
I love helping entrepreneurs think proactively about taxes so that they can maximize deductions, set up the most effective entity structures, and create long-term wealth plans which use the incentives that are already in the tax laws to encourage and help business owners drive our economy forward! If you’d like to learn more about how we can help you lower your taxes and build long-term wealth and tax strategy, let’s connect!
