From business expenditures to careful reserves, there are a diversity of approaches that business owners can utilize to reduce the share of their business income that can be taxed.
Four major factors a business should consider are:
Are we making smart purchases and investments?
Do we know which deductions we can legally make?
How do we avoid an audit?
How can we reduce our tax exposure?
Do our charitable contributions count?
Are we eligible for Federal Tax Credits?
To ensure that you are calculating your business taxes correctly, work with a tax preparation specialist or certified accountant throughout the year. A qualified advisor can outline the laws and regulations relevant to your strategic decision-making that will reduce your tax liability and ensure that your business receives every deduction, credit, or tax exemption possible.
I am available at your convenience to discuss these matters, I can be reached at JeffreyLevine.Solutions today.
You don’t have to be a rocket scientist to start a business, but it does require you have a basic knowledge of key skills. The key skills involve understanding how to effectively manage people, operations, sales, marketing, strategic planning, and financial accounting objectives. If these skills are not your strong suit engage consultants, advisors, and employees to supplement what you lack. Focusing on your strengths and delegating your weaknesses gives you an advantage at rapidly scaling your business.
Strategy is defined as knowledge of specific goals, the uncertainty of unexpected events and the need to take into regard the likely or realistic conduct of others. Strategy is the blueprint of choices in an organization that demonstrate its purposes and objectives and defines the type of company it will turn out to be.
Management strategies are a series of techniques for controlling and directing a business to achieve a set of predetermined goals. They include strategies for goal setting, leadership, business administration, and operational activities that provide a clear sense of direction for the company and its employees about its market, consumers, credibility, and competitors which ultimately induce systematic profitability.
There are many factors to consider when taking on this sort of venture and I suggest getting the right counsel from the beginning to support you in those endeavors. If you or your team would like a consultation to discuss your strategic business planning strategies, schedule an appointment at JeffreyLevine.Solutions today. I would be glad to be of service to your organization’s needs.
If you own shares in a company understand that if you collect any dividend payments from that company, you will be responsible for the tax consequences. However, if the holding company you own also owns your shares in the corporation, dividends paid to your entity will largely be tax-free.
United States tax law allows a holding company to receive a deduction for dividends received from its corporation and to defer a percentage of the taxable income.
What Is a Holding Company?
The traditional holding company has no operations, activities, or direct business; however, its specific purposes are to owns shares in another company. The assets can consist of shares of stocks that can be backed by anything that has value. If you are planning on investing in companies through stocks, securities, or bonds, you will encounter the term “holding company.” Many of the most successful companies in the world are holding companies.
Ways To Use A Holding Company
Assets in a retirement fund can be utilized as a type of pension if required if they are in a holding company
Company profits can be converted to the holding company as dividends
Tax-free dividends can be distributed to the holding company as the beneficiary
Holding company shares can be placed in a trust
The holding company can be held by single or multiple people creating the leverage to divide dividend payments and taxes.
Subsidiary vs. Holding Company
A company can set up a subsidiary, and if the subsidiary doesn’t succeed, the parent company is not liable for the debt as the two companies are separate entities who pay their own taxes on their income. A subsidiary company can make its own choices and manage itself, without approval from the parent company which can still maintain its control by just being the sole shareholder.
To learn more about how you can benefit from revolving your tax plan around your holding company and subsidiary company, schedule your free consultation today at JeffreyLevine.Solutions today.
If you are around the age of 50, I am sure you are considering the best financial decisions that will benefit you and your loved ones while allowing you a comfortable retirement.
A retirement plan must be concise, relevant, and based on a growing financial model. To best assess your retirement goals the best thing you can acquire is a retirement calculator. You can find one on a general search engine. The retirement calculator will help you see exactly how much is enough to maintain your financial comfort. This tool will allow you to calculate expenses vs income and investments as well as assist with understanding what will be the best age to tap into social security benefits or pension when required, how long your 401 (k) or IRA contributions will last and the value with leveraging your investment income.
Setting realistic goals that reflect your true finances including short and long term expenses can significantly aide you into a smooth transition once you leave the workforce and journey into the world of a successfully planned retirement.
When calculating your retirement financial needs consider as a priority the longevity of your existing mortgages, estimate health expenses, including long term care, and make sure you are investing the maximum into your retirement accounts.
While making sure that your investments continue to grow and are sustainable, remember its always ok to take on a freelancing gig or a hobby like teaching something equitable to those who need your expertise. It is a great way to earn extra income and do some great things in your spare time.
I would love to assess and ascertain your retirement goals and am looking forward to helping you realize a relaxed transition with proper planning. Feel free to reach out to me, no matter what age you are as retirement is not an age thing, but an inevitable thing depending on goals and circumstances. I can be reached at JeffreyLevine.Solutions where you can schedule your free 20-minute consult.
Proper financial forecasts will help you develop operational and staffing plans, hone down the most effective business model and make your company look more attractive to investors.
Here are 3 primary points you should ponder when forecasting your business for ultimate growth that should be revisited monthly, quarterly, and yearly for maximum sufficiency in conjunction with your business plan.
- Itemize fixed and variable costs plus overhead expenses first. Start with expenses, not revenues while leaving ‘padding’ for the costs of labor, licensing fees, insurance, legal expenses, marketing and advertising
- Create two sets of forecasts: conservative (think smart) and ambitious (think big).
- Understand the ratios that reconcile revenue and expense projections:
Gross margin = Total Direct Costs compared to Total Revenues
Operating profit margin = Total Operating Costs compared to Total Revenue (-financial costs)
Total accounts in comparison to each employee
For more details on growth forecasting for your startup or existing business, I am facilitating consultations to discuss your specific needs.
Schedule your free consultation for you and your team at JeffreyLevine.Solutions today.
Ask yourself these key questions when tax planning to ensure that you receive the largest possible tax savings:
1. Does your tax team include a tax planner or advisor who is knowledgeable about current tax laws?
2. Is your strategic tax planner aware of your entire financial agenda?
3. Is your advisor knowledgeable in both personal and business tax laws and filings?
4. Have you reviewed your previous tax years returns line by line with the advisor to discover viable changes relevant to you?
5. Are your tax, financial, and legal team on the same page?
6, Are you getting your primary tax advice from a neighbor or family member?
7. Does your current tax plan encompass your estate goals, retirement objectives, philanthropic interests, existing investments, business revenues, and personal income?
8. Are you meeting with your advisors between April and September?
9. Is your investment income realizing the most tax-efficient benefits?
10. Does your retirement plan include IRAs, 401Ks, and substantial life insurance where applicable?
Keep in mind there is no order of importance related to these questions as they are all equally important to your overall financial success.
If I can be of service to help you design, plan, and implement your financial or tax plan do not hesitate to reach out to me at JeffreyLevine.Solutions today for your free 20-minute consultation.