Tax Planning Tips for Businesses

Tax Planning
Tax Planning

Frank L. Zerjav, CPA is the founder of Tax and Advisory firms located in St. Louis County for nearly 40 years of trust that provides professional services to clients nationwide. Frank L. Zerjav, Sr.and his team of licensed Professional Tax Advisors and Professional Tax Resolution Experts help clients to apply the BEST TAX PRACTICES FOR BUSINESS & REAL ESTATE OWNERS, PROFESSIONALS, INVESTORS AND INDIVIDUALS

The following checklist is designed to help clients to stay up-to-date on all tax related issues, and away from the scrutiny of the IRS:

 Keep and retain good records about who is an “employee” and who is an “independent contractor.” Contractors must furnish their invoice for payments made.

 Invest in good software accounting systems – those that track your records and regularly provide updates to new IRS rules.

 Hire a professional tax accountant who has experience and expertise in your type of business, whether it’s a real estate investor, construction industry or professional practice.

 Keep and retain good records on how much you paid for, and the date you placed in service, all business equipment, business vehicles, etc.

 Don’t even consider using funds you have withheld for employee payroll taxes.

 If your spouse, child, mother-in-law, or other close relative works in your business, make sure he or she abides by the same employment rules as your unrelated employees.

 Retain all relevant tax records for at least seven years, and if your records relate to property and depreciation, keep them until the property is disposed of, plus an additional three years.

 Keep detailed records on how you use your personal or business-owned vehicle for business vs. personal purposes.

 If your hope is that your practice or business will continue after you die, under the leadership of another family member or designated heir, take steps to protect the business against a forced sale in order to pay inheritance taxes.

 Don’t become emboldened by thinking that the IRS will have to “prove” that you have done something that doesn’t conform with the tax law. The burden of proof is always on you, not the IRS.

 Become familiar with the tax rules surrounding starting, running, selling and shutting down a business. Determine whether you should operate as a Partnership, a Corporation, an LLC, or a Sole Proprietorship. Your professional tax accountant should be closely familiar with structuring the right entity for your situation.

 If you can’t pay the taxes you owe to the IRS, or another tax agency, contact your tax professional right away. This situation won’t get better by ignoring it.

Professionals and business owners need to be focusing on tax planning all year long to avoid missed opportunities and to capitalize on scores of perfectly legal opportunities to lower their taxes. Never make important financial decisions without at least considering the tax consequences. Savvy owners factor taxes into their planning throughout the year and stay on top of continual tax law changes.

For more information, contact by phone or email
(314) 205-9595 or toll free 888-809-9595


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