Small Business Owner Tax Tips – Part One

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Small Business Owner Tax Tips Part One
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• Reducing your tax liability as a small business
  owner, is doubtless a priority for you, and
  understandably so. Thankfully, there are a few
  tax strategies that you can discuss with your tax
  advisor to minimize your tax liability now, and
  for the coming year
• Deduct 20 of your qualified business income
• While this may apply to your business, it isnt
  automatic, and youll need to talk with your tax
  advisor to determine whether the deduction can be
  applied or not. Typically for income from
  pass-throughs, tax laws do limit this particular
  deduction for certain service businesses.

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• For the future, despite the potential 20
  deduction mentioned above, you might wish to
  discuss with your tax expert about changing your
  status from a pass-through business to a
  C-corporation, as the 2017 Tax Cuts and Jobs Act
  reduced income tax rates from 35 to a flat 21
  for all C-corporations.
• Formulate a tax paying plan
• Disruptions to your cashflow are not welcome
  under any circumstances, and the best way of
  reducing this risk, is by having a detailed idea
  of the overall outlook for your business for the
  tax year.

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• Whether this means that you set money aside to
  cover for unexpected eventualities or arrange for
  a line of credit to pay the IRS, there are
  several options open to you. Talk with your
  accountant or tax advisor about the possibility
  of paying quarterly estimated taxes for the
  upcoming year, which could enable you to better
  manage your tax requirements.
• Talk to your tax advisor about a retirement
  savings plan
• Employer sponsored retirement savings plan, such
  as SIMPLE IRAs, 401(k) and SEPIRAs, may be
  tax-deductible, but youll need to discuss your
  options in detail with a tax specialist, as each
  plan has different amounts that the employer and
  employee can contribute, along with different
  available investment options, and youll want to
  assess how easy they are to set up, too.

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• If youre starting a retirement plan for your
  employees, you may be entitled to a tax credit to
  help defray that cost, but again, your tax
  advisor will need to help you understand when
  youll need to establish the plan some have
  until the due date of the tax return for 2021,
  while others must be set up before the end of the
  year, if not sooner.
• While its easy to read about tax tips online,
  there can be no substitute for the experience and
  knowledge of a tax professional they can save
  you hundreds in tax dollars and help you
  formulate cost cutting, efficient tax strategies
  to reduce your burden as your business
  progresses. Engaging with a tax professional is
  always a sound investment, and there are few
  small business owners who regret their decision
  to work with one on a permanent basis.

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• Outsourcing your accounting needs is often the
  most cost-effective way to engage with tax
  professionals, since you pay them only for the
  work they carry out for you.
• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami, Heyer Associates would be a right
  option.