On the tax planning side, we review throughout the year. Depending on the client, a quarterly or at least a semiannual review is used to analyze the tax implications at both corporate and individual levels. We use Year-to-Date data and timing along with multiple scenarios to determine prospective income and expense.
Our system allows us to reduce the tax liability significantly
If your company is an S-Corporation or an LLC, you know how relevant this is since the income passes through to the shareholder or member.
The idea is to pay as little as necessary under the current tax structure and to take advantage of all of the tax breaks available both current and expiring.
We also make sure that the appropriate estimated tax amounts are being paid to eliminate all penalties and to avoid a big tax payment surprise in the future.
There are many areas of tax planning that can be beneficial in reducing the tax bill including:
- Pension plans
- Proper timing of capital expenditures
- Accrual or cash basis timing of expenses
- Shareholder salary versus dividend payments
- Charitable contributions – cash or stock
and many others depending upon the characteristics of each particular entity and individual.
We work with our clients to select the tax planning vehicle(s) that are right for them and their business.