Tax Planning Strategies

Proper tax planning usually starts with your choice of business entities.  Should you be a LLC, a Corporation or a simple Sole Proprietor?  Should you elect S Corporation status or not?  Each situation should be discussed and the appropriate entity chosen based upon the type of business activity, potential liability factors, retirement goals, tax factors versus the desire for simplicity. 

The next basic step in tax planning is to maintain good records.  Being aware of the facts remains the best option for good decision making in your business.  Beyond that, our obligations to the various tax agencies require us to support deductions we take and taxes we pay. 

Although as business owners, we spend most days thinking about ways to increase income, tax planning sometimes requires planning to reduce income in order to lessen the tax bill.  In addition, taxable income can be reduced by increasing deductions.  Knowing what can be deducted and keeping track of these deductions is paramount in tax planning. 

Including a properly funded retirement plan also remains one of the best ways to tax plan, as well as planning for the future likelihood of reduced income.  In addition, tax credit eligibility knowledge is very important including education and savings credits.

Finally, making estimated tax payments during the year coupled with proper tax withholding will lessen the tax and smooth out cash flow.



Professional Business Solutions, Inc.
www.GoPBS.biz
141 NW 20th Street, Suite B5
Boca Raton, Florida 33431
P: 561.393.9802      F: 561.393.9823
E: Jeff@gopbs.biz

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