Can an effective tax planning strategy help you avoid writing Uncle Sam another big check next year?
If you’re like most small-business owners, that check you wrote the IRS last month (not to mention the hassle involved in preparing your returns) likely gave you a case of heartburn. Small-business owners are naturally oriented toward a DIY mentality. But if that includes doing your own taxes, you probably aren’t planning properly.
Let’s look at just some of the benefits that tax planning can offer you, as an entrepreneur and small-business owner.
No. 1: Tax Planning Saves You Time and Hassle
When did you gather your records and sit down to work on your tax returns this year?
If it was a day or two (or even a week) prior to the filing deadline, you likely endured a few highly stressful late-night sessions of frenzied sorting, calculating and hair pulling. And once the envelope went in the mail, you probably tucked away the shoeboxes where they’ll stay until the same time next year.
When you adopt a comprehensive planning strategy, you think about your taxes all year long — in a good way. So instead of dealing with your receipt pile once a year, you can manage your financial affairs easily and consistently.
No. 2: Tax Planning Saves You Money
For many small-business owners, saving money is the most important benefit of tax planning.
You probably don’t have much time to memorize the federal income tax code or keep up with the changes the IRS implements each year. An experienced attorney has that knowledge and puts it to work on your behalf. This means you can take advantage of every legal avenue for minimizing your tax burden.
Effective planning strategies help you maximize the deductions you’re entitled to. Your lawyer can work to lower your tax rate and ensure you take all available credits.
And because no one-size-fits-all approach can work for doing taxes, you will have the benefit of truly personalized attention and planning strategies tailored specifically to your needs and goals.
No. 3: Tax Planning Secures Your Future
Why did you start your business?
Likely you wanted to have more control over your time and your future. Spending more quality time with family and friends is important today, but in the future, retirement will become a looming priority. Tax planning is one of the most effective ways to help ensure your business’ future as well as your retirement.
An experienced tax attorney will listen to your goals and recommend strategies to help you achieve them. Investment strategies cannot only help secure your future, but they can also reduce your tax burden now.
Using an attorney for your tax planning will also help keep you out of legal trouble, lowering your risk of incurring penalties and interest charges — or worse — tax evasion or fraud charges.
The Froisland Law Firm serves business clients in Salt Lake City, Utah, providing professional tax services. You have worked hard to establish your small business. Protect your investment with comprehensive tax planning strategies.