Powering Up Profitability: Increased Revenues with Tax Strategies
Welcome back to our series on Powering Up Your Profitability. We are going to be sharing 5 Tips with specific action steps you can take right away! If you missed last week about planning for growth you can visit it HERE.
If you are eager to learn about all of these 5 tips right away, along with 5 more, download our 10 Tips to Increased Profitability HERE.
This tip is all about keeping more of the money you make! Imagine increasing your income without any extra work! The answer lies in tax planning.
The time for tax planning is at least 3, possibly even 6 months before the end of your tax year. When you wait until your tax year is over the only option you have is to pay the tax you owe.
A forecast will help you know when it will be important to bring on a Tax Professional for strategizing, to know when your income levels will warrant a review of entity structuring, or to understand a new area of the tax law and how it relates to your business. This is a big step in keeping more of the money that you make.
There are many strategies available to us as entrepreneurs to keep more of the money we make in our pocket. I believe that it is our fiscal responsibility to do so. We can have a much greater impact on our families and in our communities with a dollar in our pocket than the government can have with that same dollar in their pocket.
Entity structuring is one way that helps us to pay less in tax and it is also how we protect our assets. In the beginning we all want, at the very least, to be established as an LLC. This establishes the “corporate veil”. When managed properly this is what separates you personally from your business and lets the world know they are doing business with a business and not an individual.
When to structure in payroll or an additional entity depends on you and your goals. The reason for doing any of it is to help you keep more of the money you make and then to have your money working for you instead of you working for it. There are many strategies for wealth development and they are not a one size fits all.
ACTION STEP: Mark your calendar now for a time to review 2018’s tax implications with your CFO and CPA. Remember that can be as early as June 2018! If you are still needing to file your 2017 taxes we are happy to now offer tax filing services! To explore working with us simply comment below.