Hello again and welcome, I’m Karla Dennis, CEO of Cohesive Tax, a tax preparation and consultation firm. We are licensed in all 50 states and are here to help you plan or prepare your taxes for the future as well as to offer you sound advice.
Today I would like to give you three tax tips for small business owners. There are three things that you can do right now as a small business owner to lower your tax bill. As a business owner the entity that you operate your business in is very important. Whether you operate as an LLC, Corporation or a Sole Proprietor can certainly determine your tax liability. it is very important that you research and determine which entity is right for you; don’t necessarily think that the entity you started with is the entity you will end up with. Tip number two is to use multiple entities so you can keep your tax bill low. One of the biggest strategies you have as a business owner is to move money from one entity to another; this is called up streaming income. Up streaming income can help you lower your taxes and keep more money in your pocket. The third strategy that you should use is to ensure you have alternative year ends for your entities. All of your entities do not have to end as of December 31. it is important that you use multiple year ends because you can move money around, save on taxes and use multiple strategies when you have multiple entities with different year ends.
Again, this is Karla Dennis telling you to review your entities, use multiple entities and alternative year ends. For more help, information and advice you can visit me at www.CohesiveTax.com or contact me via the website.