How the business is structured can change how the income is taxed.
Planning around entity structure, tax elections, owner compensation, distributions, retirement contributions, and the decisions that come with growing a business.
The tax return starts long before the return is prepared.
- Current entity structure
- Federal tax classification
- S Corporation election considerations
- Owner salary and distributions
- Business deductions
- Retirement contributions
- Estimated tax payments
- Owner transactions
- Multiple-business structures
- Changes in income or ownership
As the business changes, the tax structure may need another look.
Is the current entity still the right fit?
A structure that worked when revenue was lower may not always remain the best fit as the business grows.
Is owner compensation being handled correctly?
Salary, distributions, draws, and other owner payments can create different tax consequences depending on the entity.
Are taxes being planned during the year?
Growing income can create estimated-payment and year-end planning needs before tax season arrives.
Are multiple businesses working together efficiently?
Ownership, intercompany activity, and the way related companies are structured can affect the overall tax picture.
Start with the structure. Then look at the numbers.
Review
Current entities, prior tax returns, income, payroll, ownership, and business activity.
Evaluate
Identify areas where the existing setup may create unnecessary tax exposure or administrative problems.
Plan
Develop recommendations around the business’s actual income, structure, and goals.
Revisit
Review the strategy as revenue, ownership, or the business itself changes.
The tax strategy may need to change with it.
A structure should support the business that exists today—not the one that existed when the company was formed.