Understanding Tax Planning Strategies for Small Businesses

Understanding Tax Planning Strategies for Small Businesses

Tax strategies for small businesses are crucial to their success. Small business owners need to take the necessary steps to effectively manage their taxes and minimize tax liability. Proper financial management isn’t just about revenue, wages, and payroll. It’s also about evaluating assets and reviewing tax exemptions—tasks that accounting software can’t execute. Here are the ways Guardian Tax professionals can assist you with tax planning as a business.

Identifying the Tax Gap

Managing your finances without the help of a tax advisor can be a challenging task because tax gaps are often overlooked. However, identifying the tax gap is a strategy that can help lower or eliminate unnecessary business tax costs. This strategy can help uncover where a small business may be incurring costs and rectify any errors or omissions to ensure business owners are only paying what is legally required. This, in turn, saves the business a significant amount of money. Most Certified Public Accountants aren’t set up to implement a unique business structure, so it’s best to bring in a tax advisor to perform an assessment and ensure savings.

Here are some of the tax costs that can be addressed with our tax strategies for small businesses:

  • Federal taxes: Federal taxes are considered marginal or progressive taxes within federal law that are applied to all forms of revenue and earnings.
  • State taxes: State taxes are a type of tax within the law that is levied by the state and applied to individuals, corporations, and estates (including property).
  • Estate taxes: This type of tax is applied to property, including real estate, cash, stock, revenue, and more.
  • Taxes on personal income: This tax is levied on cash, wages, salaries, dividends, interest, and other types of taxable income an individual earns annually.

These are financial burdens that can be addressed with the help of tax professionals working alongside the traditional Certified Public Accountant and financial team.

Understanding the Continuity Gap

Continuity risk refers to the period in which business operations are interrupted due to unforeseen circumstances. When developing a tax strategy, business owners need to address these because they may lead to potential losses and disruptions.

A few examples can include the loss of a key employee or the failure to transfer leadership and financial control of the company. Succession is an integral step to growth for many businesses, and having plans in place can make or break a small business.

So, when thinking about business tax planning, owners will have to think about exit strategies and employee retention to ensure the company’s position lowers its overall risk and costs. These are tasks accounting software can’t address. That’s why our team has the right professionals to assist you, including an experienced Certified Public Accountant and tax attorney. We have the knowledge and expertise to support your team.

Closing the Wealth Gap

Tax strategies for small businesses should also include closing the wealth gap and intertwining success and longevity. There are a few factors and questions that businesses should consider when developing their tax strategies:

  • Legacy: Did you know that assets do not transfer to heirs and may be unnecessarily depleted by beneficiaries?
  • Liquidity: Is your property mostly non-liquid, such as real estate and business interests? If so, your estate may be forced to sell the assets at a discount
  • Legal Risks: Are there any legal risks you should know to protect your company regarding ongoing compliance or law?
  • Estate Risk: Are there any taxes incurred when transferring property and hard-earned assets to your beneficiaries?

It’s imperative to keep these in mind when it comes to optimizing your company value and realizing tax savings. Thankfully, our tax professionals can assist your Certified Public Accountant with these efforts.

Choosing Guardian Tax Consultants

At Guardian Tax Consultants, we apply a unique financial structure to businesses that we work with to help them with tax-saving strategies. With the proprietary financial structure created, you can realize savings and lower your tax burden as well as protect your businesses. We can help you revise your structure, reduce long-term risks, strengthen your financial position, and grow your wealth purposefully. We’ll support your financial team and accountant, and we’ll remain your partner to ensure law compliance year after year. Schedule a call today to learn how you can leave a meaningful legacy confidently with our partnership.


Understanding Tax Planning Strategies for Small Businesses


We are expert tax consultants dedicated to maximizing business wealth and minimizing tax burdens through strategic planning.

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