Why protect your business from legal taxes? Simple. It’s almost immoral and should be illegal to pay all the legal taxes that assault your business, your personal assets, and your legacy.
The IRS is ready to tax you and your business, so there’s no logical reason for you to put a big stack of money on the table for them to take. The IRS will also take full max on individual and family taxes. Any legacy planning or inheritance you may receive is also on the table. Don’t let the IRS just rake it all into their bag!
Are you 100% sure you’re paying the least amount of legal taxes the law requires?
It’s your choice. Unless you take control of your total financial life from a tax-advantaged management position, you will continue to pay a lot of money in legal taxes that you aren’t required to pay.
Why did you start your business?
You had talent and passion, and wanted more control over your time and your money.
When F. Scott Fitzgerald told Ernest Hemingway “the rich are different from you and me,” Hemingway responded, “Yes, they’ve got more money.” I think Hemingway should have added, “…and they’re business owners.”
The tax code offers business owners opportunities to remove a lot of money from the table. These opportunities are so lucrative that 40% of people with an AGI of $250,000 or more have at least one business structured as either a Partnership or S-Corp. Of those in the top one percent (earning more than $344,000 in 2009), the majority has a Partnership or S-Corp.
It’s no secret that most people are not business owners. Of those who are in business, most with an AGI of less than $199,999, according to Accounting.com, have a spouse or family friend “do the books” for their business. It would be very unusual for any of these individuals to have the knowledge and skill of a CPA who is also an expert in business and individual financial and tax management strategies.
Do more than protect your business
You became a business owner to have more control over your time and money. Now is the time to step up and finally really assert that control and power. You can protect your business and your total financial life by taking a tax-advantaged position and pay ONLY the least amount of required legal taxes that the law allows.
If you want to protect your business, contact me.
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Depending on where you operate your business, the nature and the structure of your business, the IRS has very specific codes, and laws. At first glance, these laws appear to separate your business entities from your individual entities. But if you look closer, you’ll see that this IRS “rule book” allows your business and individual entities to become team players, with the common goal of protecting and encouraging each other.
Protect your business, without breaking the rules
Taxes are unavoidable, but they’re legally controllable if you know the rules. Your overall business, family and future financial goals can be defined so that everything you do is a managed, tax-advantaged, step in the right direction that gives you control over the outcome.
Strategies unite your team: Since the Code, or the IRS rule book has given the go-ahead for you and other entities you control, such as your businesses, to operate as team players, with a common goal of protecting and encouraging one another, we’re going to make sure you play by their book.
Strategies become dynamic: You may have read the rule book, but unless you understand it, know how to apply it, and have enough experience to identify traps and upcoming changes, making realistic goals and a game plan is impossible. You must have knowledge, goals, and a game plan to build strategies.
Goals. Where do you want to be in one year, five years, and long-term? A winner? Rich? Secure? That’s a bit vague. We’ll help you get more specific and maintain flexibility to adjust as laws change and your goals are redefined through the years.
Game plan. We take into consideration current tax code, recent regulatory changes and what we expect to see in the future. Whatever the weather, no matter the roadblocks or peaks or valleys, there is a plan. Strategies make it work.
A Strategic Tax-Advantaged Plan
A Strategic Tax-Advantaged Plan is structured to meet your current goals while maintaining flexibility to adjust as laws change and your goals are redefined through the years. Your Strategic Tax-Advantaged Plan is designed the protect your business and family, as well as you and your legacy.
Examples of some tax-advantaged strategies which could be recommended might include:
- Retirement planning: By setting up a SEP IRA, a Simplified Employee Pension plan, business owners can contribute toward their employees’ retirement as well as their own. Tax savings, as well as tax deductions, could be seen for the business and the owner as an individual entity. A strategic tax-advantaged approach to the use of a SEP IRA offers powerful benefits to multiple tax entities when used in a complete tax-advantaged scenario.
- Salary adjustment: A business owner may have decided on a salary that is too high or too low for a plan which would allow them to meet their goals. When taken in context with overall tax-advantaged strategies, an adjustment in salary could alter retirement planning and change eligibility for QBI tax benefits. One hypothetical scenario projects a five-year savings of approximately $100,000.
- The home advantage: Some professionals and business owners have the option of using multiple definitions of popular and less familiar deductions within a full tax-advantaged strategy. Together, this hypothetical scenario projects a designated tax year with contributions and credits in excess of $17,000.
A fictitious business was presented a Strategic Tax-Advantaged Plan using these and other strategies to help enable the owner to meet business and life goals. The presentation package included this statement:
“Should you choose to implement all recommended strategies, your anticipated total first-year savings will be $27,886.”
Protect your business from legal taxes and DIY projects
The Tax Cuts and Jobs Act of 2017 make it foolhardy and dangerous to regulate your business tax work to a spring DIY project. Individual and family tax and retirement planning are approaching declared emergency status. A 2018 study by Northwestern Mutual reports that 21% of Americans have no retirement savings and an additional 10% have less than $5,000 in savings.
As a business owner, you have the power to take control of your time and money. You also have the right and power to protect your business and yourself against legal taxes and pay only the least amount in taxes that the law allows.
The bottom line
New tax laws aren’t for the faint of heart, DIYers, or “flying-by-the-seat-of-your-pants” kind of person. Don’t go it alone. You can have the same opportunities as my clients have to control your own financial future. I can become your CPA tax specialist and financial business and life goals adviser and you can have the control you need and want.
I earned my reputation as The Radical CPA
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