Tax Planning: A Must for Your Business

How much do you understand about your business’s tax situation? Simply filing taxes each year without first engaging in strategic tax planning could mean your business overpays its taxes. Your tax, financial and legal professionals can provide guidance with the big picture in mind.

Why Hire a Tax Consultant?

While your accountant may have the expertise needed to file your taxes, he or she may have little experience developing a strategic tax plan. A professional tax consultant generally will know current bookkeeping practices and the ever-changing tax laws that affect your business and can help you develop a strategy that maximizes savings and business profitability.

When included in the planning process, your financial professional can offer an additional perspective and insight into your specific business situation.

Moves To Consider

Reducing adjusted gross income (AGI) may result in a smaller tax liability. Here are steps you can take to help lower your AGI and manage taxes.

• Contribute to a retirement account for yourself and your employees.


• Contribute to a Health Savings Account (HSA) as part of a High Deductible Health Plan (HDHP).


• Invest in business insurance. Premiums are tax deductible.


• Offer employees fringe benefits, such as health, disability, and long-term care insurance; tuition assistance; childcare assistance; transportation benefits, etc.


• Develop a marketing plan. Advertising and marketing costs may be tax deductible.


• Charitable contributions made by your business may be tax deductible.

A Limited Opportunity

The qualified business income deduction (QBI) allows eligible self-employed and small business owners to deduct up to 20% of their qualified business income. A professional tax consultant can help you navigate the complex rules and calculations determining your eligibility. QBI is scheduled to sunset in 2025, unless Congress acts.