For assistance in identifying all the deductions to which you’re entitled, contact our office. We’re here to help you pay the lowest tax allowed by law.

Cut Your Business Taxes!

Here are a few simple tax strategies that are available to most business.

The best tax planning is done before the fact. It is difficult, if not impossible, to plan for the best tax treatment when the transaction is already completed. Call us while you are still in the thinking stage of any major financial move. We are here to assist you.

Give careful consideration to the legal form of your business. Both the tax and non tax consequences can be significant. The basic forms of business include sole proprietorship, partnership, corporation, or limited liability company. We can assist you and your attorney in determining the best form for your business.

If your business is incorporated, it is often a good idea for you to personally own the business real estate and lease it to your corporation. There are a number of tax and nontax concerns relating to real estate ownership. See us before you acquire new business property or before you change the ownership of property you already have.

Avoid being penalized for underpaying your taxes. Self-employed individuals generally are required to pay taxes through quarterly estimates which are due on April 15, June 15, September 15 and January 15 of the following year. Late or inadequate payments mean that you will be assessed penalty and interest charges in addition to your regular tax liability. You are required to make estimates even if it is your first year in a new business.

Don’t subject yourself to tax penalties by mis-classifying an employee as an independent contractor. The IRS is aware that employers prefer to treat some workers as independent contractors to avoid paying payroll taxes and fringe benefits. Some types of businesses are more closely watched by the IRS than others. If you’re not absolutely sure how to classify a worker, please contact us.

Hire your children to work in your business. The wages paid will be deductible by the company and taxable to the child, probably at a lower tax rate than yours. Keep in mind that the amount you pay your child has to be reasonable for the service performed.

You can compound the benefits of hiring your child by having him or her contribute to an IRA. Use a Roth IRA, and your child can accumulate a sizable tax-free retirement nest egg.