self employed tax preparation

You’ve got a great business, but there’s one major problem that’s keeping you up at night. How to reduce your taxes?

You know your Tax planning strategy is not up to par. 

What is Tax planning strategy?

We’re no strangers to the uniqueness and pressure of running a small business. We’ve been there, and so have many of our clients.

Bottom line: Small businesses need to make more profits at the same time be compliant with tax laws. For that, they need a plan.

That’s what we’re here for! Believe me we’re all tired of the tax planning fluff available online, soyou’ll find none of that here. Instead, you’ll get all the guidance for tax savings and other investment decision making tools that can be implemented efficiently.

Keep reading to discover a Tax planning strategy that can help propel your small business into success in 2021 and beyond!

Define your objectives

Before you dive into the details, you need to figure out what you’d like to accomplish.

You can start with high-level objectives such as “More Savings” or “Reduce Taxes” or both. However, you should break those down into low-level goals so that you can accurately track your money. Once you define your objectives in detail, you will be able to implement the tax planning initiatives and start making progress.

With the right Tax planning tools, you’ll be able to easily track your money and quickly adjust your plan to make the progress.

Dive Deeper into Your initiatives

So, you’ve defined your tax plan, but you still need to take things a little bit farther. The next step is to identify the short term and
long term financial goals to achieve. It needs to be crystal clear and resonate with your target goals.

Retirement Plan

Setting up and funding a retirement plan for yourself and/or your employees can save you money on taxes. To take advantage of tax savings, make sure it’s a qualified retirement plan. It must be one that’s recognized by the IRS to allow deferment of taxes on earnings until the earnings are withdrawn. Many options are available depending on your business, your goals, and your needs. We can help to figure out which is best for you.

Buy Equipment and Vehicles for Depreciation Deductions

Businesses can take tax write-offs on purchases of business equipment, machinery, vehicles, and sometimes even real estate. These write-offs can sometimes be taken in the first year you own and use the equipment. 

Plan for timing your Business Expenses

Timing your income involves moving it from one year to another. You first have to determine the year in which you expect to pay
the most in taxes.

Review your current expenses before the end of each year and prepay some of those amounts if you want to reduce your income for the current year. You can also increase your expenses and decrease income by making expenditures such as stocking up on supplies.

 Profit optimization: A small business’s Secret Weapon

You’re now armed with the powerful tools for avoiding risks due to tax laws and a plan in place.

Where do you go from here? What real tactics can you use to catapult things into action? You might be tempted to research new tax saving strategies but I’d encourage you to step back and think about how you can make “old” tax saving strategies work for your business.

The exact Tax planning strategies that each business uses willvary. Growing a small business on a tight budget and reducing tax liabilities is challenging, but not impossible.

If you’re looking to include Tax planning Strategies and you want specific action items you can implement right now, Lakeline Tax is here to help you with all your Tax planning and tax preparation needs. Sign up for a free consultation!

Lakeline tax and bookkeeping services has maintained an up-to-date knowledge base of all domestic and international tax laws. We use every legal deduction possible when preparing your taxes in order to reduce your liability and maximize your benefits. As an Enrolled Agent Lakshmi Ramkumar, will be able to represent you in negotiations with the IRS.

Lakeline Tax provides tax preparation services for everyone including Individual Tax PreparationSelf-Employed Tax Return, Business Tax Preparation, Partnership & Corporate Taxes, Bookkeeping, and Tax Resolution. No matter what your needs require, you’ll benefit from our experience, expertise, and Friendly customer service.