
Tax Strategies in Business
Tax Strategies for Business Owners
5 Essential Revenue Opportunities For Businesses
- Start saving for your retirement. Establish a retirement plan. Your accountant can help you decide which type of plan is best for you, such as a defined contribution plan, like a 401(k) or SEP IRA, or a cash balance pension plan to save more per year.
- Employ family members. Having family members work in the business can help reduce the household tax burden and increase retirement savings.
- Reduce self-employment tax as an S-corporation. . You have until year-end to elect to be taxed as an S-corporation retroactively. While this will allow you to reduce or avoid significant self-employment taxes, it may also reduce the amount of Social Security income you will receive in the future. Your accountant can help you determine the best course of action.
- Compare C-corporations to S-corporations. An S-corporation can allow you to avoid being taxed twice for earnings. A C-corporation gives you the ability to make use of tax-free employee benefits such as meal expenses, medical, disability and long-term care insurance, and tuition reimbursements. Make an appointment with us to discuss the best option for you and your business.
Please refer to the IRS website https://www.irs.gov/ for answers to specific questions about your federal taxes or the tax authority in your specific state for questions about your state taxes.
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