Tax planning is not a December activity. The businesses that pay the least in taxes are the ones that plan in January and execute all year. Here are five strategies we implement for every client.
1. Entity Structure Optimization
The difference between an LLC taxed as an S-Corp and a straight LLC can be five figures annually. We model every client’s structure against their actual revenue patterns.
2. Retirement Account Maximization
SEP IRAs, Solo 401(k)s, and defined benefit plans are legitimate ways to defer significant income. The right vehicle depends on your cash flow timing.
3. R&D Tax Credit Identification
Many businesses qualify for R&D credits without realizing it. If you are developing new processes, products, or software, you likely have qualifying activities.
4. Quarterly Estimated Tax Management
Overpaying estimates is an interest-free loan to the government. Underpaying triggers penalties. We calibrate quarterly to stay in the safe harbor zone.
5. Year-End Acceleration and Deferral
Timing is everything. We model which expenses to accelerate and which income to defer based on your projected bracket for the current and following year.