There are exclusive tax breaks for business owners.  A classic strategy is to move everyday expenses under the business.  This allows an individual to use pretax money on everyday expenses.  There are strategies around business trips, meal, entertainment, commuting, and many others that are commonly overlooked.

The correct entity structure can maximize a business owners’ profits and protect the taxpayer from overpaying the IRS.  Sole Proprietors, Partnerships, S Corps, C Corps all have important features and the optimal use will depend on your goals, objectives and level of income.  In many cases, we will recommend multiple entities to maximize the benefits of each. 

There are over 70,000 pages in the IRS code.  Within this complex web of words lawmakers created opportunities for business owners to reduce their tax liability.  Many of these loopholes were deliberately designed and all are time tested and have avoided IRS scrutiny.  These loopholes are our firm’s “secret sauce”. 

As the strategic goals and operations of a business changes, so should the tax strategies adopted to support them.  Business owners need to keep a close eye on the regulatory environment to make sure they are paying the least amount of taxes possible.  The Tax Cut and Jobs Act was the largest regulatory in recent history and it created planning opportunities. 

There are a wide variety of industries that have special tax provisions, including real estate professionals, manufacturing companies, solar, health care, filmmaking and others.  There are also a wide variety of income levels that require different strategies.  For each level of income, there is a different set of strategies that will work for you. 

Asset protection is a critical part component of estate and tax planning.  The goal of asset protection planning is to insulate assets from civil money judgements and frivolous credit claims.  Asset protection planning is all about taking money off the table in good times so that you can walk away during the bad times. 

Business owners must evaluate a myriad of insurance types to protect their business interests, recruit employees, and have a good night’s sleep.  Types of insurance include medical, dental, life, AD&D, E&O, general and professional liability and many more.  Many of these insurance types have a tax component and when used correctly can save you money in taxes and build long-term wealth.

It’s no mystery that contribution to a tax deferred retirement account each year can lower your current tax liability.  There are many different types of retirement plans like 401(k), 403(b), SEP IRA, Traditional IRA, deferred compensation plan, and many others.  Each of these plans have various complexities that will determine which plan and how much to contribute. 

Real estate is a great investment tool to build long-term wealth.  It’s also an amazing tool for tax planning.   Such provisions like depreciation, 1031 Exchanges, avoiding FICA on your income, lower capital gains rates, borrowing against the equity, self-directed IRAs, section 199A, opportunity zones, and many other features make this a valuable tool for the real estate investor.