Tax planning for the small business owner involves negotiating a maze of local, state, & federal regulations. Smart owners conduct feasibility studies first before making any other kind of investment. Failure to do so could result in substantial losses.
Some businesses have failed completely because of excessive taxes. In most cases, the companies failed to create a payment schedule. The company directors failed to estimate the amount of taxes that would be owed. When tax time arrived, they lacked sufficient funds to pay the taxes owed. Their only alternative was to declare bankruptcy.
A thorough feasibility study could have prevented the company’s failure. The directors would have been able to reduce the amount of taxes owed, which is perfectly legal. A tax planning analyst may have advised the directors to pay the company’s taxes quarterly.
Reducing costs in other areas, such as payrolls, might have been necessary to ensure sufficient funds to pay the quarterly taxes. An analyst could also have suggested where cuts could be made to protect against future losses.
You could be involved in every aspect of running the company. You might need to find suppliers, hire employees and select a location. Among the first things you should do is prioritize, select the things that you alone must do, and delegate the rest. Unless you happen to be trained in tax planning and analysis, this is one of the things that should be delegated. The laws concerning taxes are complicated, and they change frequently.
An analyst could find that running your company in the location you selected is unfeasible. That’s rare, but it does happen. If you have yet to commit to a lease, you can easily move your small business to a more tax-friendly location. Federal, state, and county credits are available for businesses opening up in specific locations. You might even qualify for a grant.
Syriac CPA Tax & Accounting Services offers the best accounting and bookkeeping services in California, assisting individuals and organizations in various industries and stages of development. We are the most effective Tax Consulting Cerritos firm. Individuals & organizations of all sizes can pick from a variety of services.
Accountant and bookkeeping, business consulting, personal and corporate taxation, and a variety of other services are included. Syriac CPA Tax & Accounting Services has over 20 years of expertise and pure skill in streamlining procedures and saving large sums of money for a wide range of businesses. For a free consultation, contact Syriac CPA Tax & Accounting at 1 (818) 960-9758.
