The holiday season is fast approaching along with all the joys that come with it. But for business owners, the delights of winter also come mixed with worry and angst regarding the end of the tax-year. Owing taxes is something that every small business owner wants to avoid. Help in reducing business taxes is just one of the things we do well.
The best case scenario for every manager and entrepreneur is to reduce tax burdens as much as possible. We do so by mitigating their income taxes owed and possibly rethinking what business entity structure to utilize. Broadly speaking, there are several important things you’ll want to consider right away. This can be especially true for entrepreneurs who live in areas with relatively high taxes such as those near one of our three offices in Vienna VA.
Take a look at what can be deducted. It may seem as obvious as checking with the IRS (or their website) to see what you can write off . But also what you can’t. However you won’t really know for sure until you check with qualified tax preparers and experts like Business and Financial Solutions. The tax code can be complicated—especially as it related to how many deductions you can claim for your business. Work with a team of experts that have an understanding of the intricacies of tax law. And let us show you the best ways to navigate them. This is your best choice when it comes to mitigating the income tax you pay for your small business. Reducing taxes for non-profits and small-businesses is something we take very seriously.
Consider taking steps that reduce your taxable income. For example, take a look at sheltering some of your profits into retirement plans. Traditional IRAs and 401(k)s grow tax-deferred and therefore you can deduct the contributions. While there may be advantages to the Roth IRA as well, when it comes to reducing your tax burden today, traditional tax-deferred accounts are still the best way to go.
Deciding how to structure your business is one of the most important decisions you’ll make from a tax perspective. Because the setup costs, the complexity, and the amount (and way) you end up being taxed will all be contingent on how you opt to structure your company. Business and Financial Solutions (BFS) can help you navigate the differences between a C-Corporation, S-Corp, LLC, and more. We can help you look at whether a structural change is right for you. What deductions you claim, how you structure your organization, and how you prepare for your tax situation will depend on the region of the country you live in. BFS takes a customized approach to your tax situation to help you save as much money as possible.
Working with an accounting firm for the purposes of tax reduction is a practical approach. A business requires the expertise of an accounting firm and professional tax preparers. Why not get both under the same roof? Bookkeepers and tax preparation companies do not necessarily adequately have those skills needed for small businesses, and will have to be incorporated with the use of a good accounting firm.