As we have seen over the last five years, tax laws are constantly changing. It can be hard to keep track of all pending bills and how they can affect you, but you don’t want to be caught uninformed and hit with large penalties or tax hardships. Efficient tax planning is crucial to make the most of each unique tax situation.
While this is not an exhaustive list, here are some circumstances where you need to reach out in advance of making any large business decisions. Each of these may have a significant impact on your company’s tax burden and need to be planned accordingly.
- Selling or buying a business. When selling or buying a business, there are advantages and disadvantages to the timing of the transaction, the type of sale (asset vs stock), the sales price, and more. Your CPA can help you determine the best strategy to maximize the after-tax sales price of your transaction.
- Expanding your company. Expansion can lead to multiple tax issues, especially if your company is entering other states or global markets. There can be state tax registration, income tax filing, sales tax filing, and other state tax compliance issues when entering new states.
- Buying and renting real property. There are many things to think through when considering the purchase of real property for your business. Your CPA can help you set up the most tax efficient entity structure for maximizing tax deductions when acquiring real property.
- Expanding workforce. Depending on the size of your company, hiring just a few people can make a big difference in your tax liability. You also need to consider whether you are hiring employees or independent contractors and how that could create additional tax filing consequences. There are also various tax credits for hiring certain qualified employees that your CPA can lay out for you.
- Deferred compensation. If you are considering deferred compensation plans for high income earners in your business, there can be additional tax implications for you and your employees. Your CPA will be able to discuss the advantages and potential drawbacks of different plans to help you make an informed decision.
The business development and tax team at Rodefer Moss specializes in advanced planning to maximize tax benefits while minimizing tax liabilities. The sooner we can assess your current situation and future plans, the better we can help you understand and prepare for potential tax consequences.
If you are facing a business decision, please contact us as soon as possible. We will work with you to maximize business growth and tax benefits while remaining compliant with current law.
Don’t wait until it’s too late. Contact Rodefer Moss in advance of these important changes.
