Tax Considerations in Business
You always wanted to be in your own business so you could control your own destiny. Then, the Tax Man cometh and you even wonder if you are working for minimum wage after he puts his hand in your pocket. At VaughnCPA, we understand and will help you each step of the way, from advice on lease/purchase decisions to determining whether an activity is passive or not, and whether if matters.
How you structure your business is one of the most important decisions and you, your accountant and your attorney should advise you on the basis of many factors, including taxation. Corporate tax rates may be as high as 35% (or higher in case of personal holding companies). Limited Liability Companies, Partnerships, S Corporations, Secular Trusts and Disregarded entities in addition to the old standby proprietorship may pass through tax or have some tax at their entity level. Proper planning, meaning asking all the right questions, is something we at VaughnCPA will be doing as we evaluate your situation. Legal considerations come into plan. Some choices will mean higher Social Security Taxes, some will limit your deductions. There is no one right answer, but our CPA firm will surely find the most suitable situation for you and present all of the pros and cons.
Retirement planning works hand in hand with the business tax considerations. There are many types of plans and choosing is important. Health Care for your business? Even knowing the questions to ask is difficult. Business energy credits present an opportunity and an obligation. Cost segregation studies, capitalization of improvements, inventory valuations, possible double taxation on earnings…..The list of tax matters that must be considered when preparing a return and planning for the year does not end.
Our CPA Firm listens to the answers of our questions, and also to the unsaid body language and nudges that are part of communication.
Business taxes are complicated and take you away from your important job of making the money. Let us take the anxiety out of this part of your life.