Cox Padmore Skolnik & Shakarchy LLP
866-716-3813
Menu

Tax planning for the success of a business

As most business owners are aware, tax liabilities and circumstances can fluctuate with changes in the business. If a business begins earning more money, tax liabilities may increase and these changes can come about throughout the year.

Proactively conducting business tax planning allows the business to strategize concerning tax situations in advance rather than dealing with business taxes as a crisis situation down the road. There are several ways a business can improve its tax situation to keep more of its working capital rather than paying it in taxes.

One option is to start a tax deductible retirement fund. There are a number of different options to consider that can suit the individual needs of the business. In some circumstances, retirement plans may allow a business to provide its employees with raises without paying additional payroll taxes.

It may also be possible to provide benefits to employees that are not taxable either to the employee or business, so it is important to be aware of what those benefits are. Purchases of furniture and equipment may also provide important tax benefits for a business, but it is important to understand the difference between taking the deduction for the purchases and claiming depreciation for the purchases.

Choosing an entity form is always important, however, it can also be useful to re-evaluate that decision if it makes financial sense to do so. For businesses netting over $100,000 annually, it may be an especially important consideration to re-visit this topic. Different entity forms provide different tax advantages a business should always be aware of and carefully consider.

During the year the circumstances of a business can change as it enjoys greater success. Tax planning changes should also be made to keep up with the growth, evolution and success the business enjoys.

Source: Fox Business Small Business Center, "5 Tax Planning Tips for Your Small Business," Bonnie Lee, July 11, 2014

No Comments

Leave a comment
Comment Information

Consult Our Skilled, Pragmatic Manhattan Commercial Litigation Attorneys

Tap To Request An Exploratory Consultation ยป

Entrepreneurial, Corporate and Individual Legal Services For Domestic And International Clients

To Request A Consultation By Phone, Call: 917-512-4332 (NY/NJ) | 917-512-4332 (CO) | 866-716-3813 (Toll Free)

New York Office
630 Third Avenue 19th Floor
New York, NY 10017

Toll Free: 866-716-3813
Phone: 917-512-4332
New York Office Map

Great Neck Office
98 Cutter Mill Road, Suite 310N
Great Neck, NY 11021

Toll Free: 866-716-3813
Phone: 917-512-4332
Great Neck Office Map

Hackensack Office
27 Warren Street, Suite 304
Hackensack, NJ 07601

Toll Free: 866-716-3813
Phone: 917-512-4332
Hackensack Office Map

Denver Office
1060 Humboldt Street
Denver, CO 80218

Toll Free: 866-716-3813
Phone: 917-512-4332
Denver Office Map

  • google plus
  • facebook
  • twitter
  • linkedIn
  • Review Us