Small business owners tend to take light of the many tax opportunities at their disposal to further grow their business and secure a robust retirement.
NEW YORK, NY, January 23, 2019 /24-7PressRelease/ — Founder at Protax Consulting Services, Marc J Strohl CPA, has just revealed essential information that U.S. expatriates need to consider when seeking a U.S. international assignment specialist. For more information please visit Protax Consulting Services, Inc. (“Protax”).
The economy would not be what it is without the contributions of small business owners. They do everything from creating jobs for the masses to providing the state with many necessary services and the money they make helps uplift the communities they live in. However, in their endeavors to put their businesses at the top, small business owners tend to take light of the many tax opportunities at their disposal to further grow their business and secure a robust retirement.
Here are four tax strategies that will help you secure a better future for your business and your family.
1. Start saving for retirement
A simple first step is to establish a retirement plan that allows you to have financial security regardless of the success of your business. There are many different plans that can suit these needs, a certified professional financial planner can walk you through which plan might be best for you. A defined contribution plan, often established as a 401K or IRA, allows you to contribute up to $55,000/year. You can use these tools to lower your taxable income level below certain thresholds which can qualify your business for a better tax break.
2. Employ your family members
Employing family members can get you several tax advantages as long as you follow the rules laid down by IRS. If you employ children under the age of 18, their salaries will be subject to a lower tax bracket. This can help maximize your business’ net income.
3. Use an S Corporation to reduce business income
If you run a business as a sole proprietor, then that business is subject to self-employment tax and income tax. You can avoid this double taxing by conducting your business as an S-Corporation business, where the only requirement is payment of income tax.
4. Consider the benefits of a C Corporation
There are pros and cons for both S and C corporations and you should carefully consider which one might work best for you. While an S corporation allows you to avoid being taxed twice on your income, a C corporation gives you the ability to use tax free employee fringe benefits. These benefits are typically used in the form of meal expenses, disability, medical, long term care insurance, and sometimes tuition reimbursements.
Don’t be afraid to pursue legal actions to reduce your tax burden as a small business owner. Tax credits, deductions, reimbursements and corporate structures are all a part of tax code and as long as you follow the law and keep impeccable records you can use this to your benefit and save you and your business money.
Marc J Strohl, CPA of Protax Consulting Services has written articles published by Thomson Reuters in their Practical International Tax Strategies, Journal of International Taxation and Practical Tax Strategies publications and that are referenced and used by other U.S. tax C.P.A. and Attorney consultancy firms both in and outside the U.S. – such as the Big Four – to educate their clients and other tax experts in terms of international tax situations.
In addition Strohl conducts webinars and live presentations for CCH Wolters Kluwer, Strafford Publications, the Clear Law Institute and the New York State Society of Certified Public Accountants (NYSSCPA), Furthered Education and Lawline. He has been quoted in the NYSSCPA’s Trusted Professional, New York Post, and The Wall Street Journal.
For more information, please visit ProtaxConsulting.com
For the original version of this press release, please visit 24-7PressRelease.com here