Expert Tax Strategies for Business Owners in the Construction Trades
Shaun Lawrence, CPA
I have worked over 15 years to help improve the cash flow and net profits of my business clients by aggressively and legally reducing their tax liability to the lowest possible. I have worked with some of the most elite CPAs and financial advisors in the country. I prepare custom Tax Plans backed by the tax code and courts. Using Advanced Tax Strategies, I save clients thousands of dollars each year by working with us. This includes those of you that already have a CPA or tax accountant! Too many overlooked tax strategies!
CLICK BUTTON TO SCHEDULE A PHONE CALL
During our call I will ask you questions about your business and tax situation to determine what Advanced Tax Strategies we can use to save you $$$.
There are many parts to a custom tax plan that depend on your unique tax situation. No plan is the same. Let us help you put the pieces together so you are not voluntarily paying too much money to the IRS. Schedule a consultation above.
Business & Individual Tax Preparation
Our extensive experience includes tax preparation for all business types including partnerships, LLC’s, S corporations and C corporations. It also includes sole proprietorship’s and single-member LLC’s which report their income and expenses on Schedule C of the owners individual tax return. We go beyond strictly compliance and work with business owners to use new and existing tax laws to achieve the best results for our clients. Planning throughout the year helps our clients get favorable results on their business and individual tax returns.
The Best Entity Structure for your Business
A big part of your tax planning strategy is picking the best entity structure. This is more important now with the new tax rules and requires additional analysis to make the best decision. Your tax strategy should ONLY start here and I so often see way too much tax paid for this reason alone.
The New 20% Qualified Business Income Deduction and unique rules, limits and phaseouts applied makes entity selection more difficult; not to mention the reduced tax
rates for C corporations. The new corporate rate of 21% makes it enticing, but there are other factors at play and it’s usually not the best option for small businesses. Pass-through entities (S corporations, LLCs, Sole Proprietorships) can make up for this reduced rate with the 20% Qualified Business Income Deduction. There are many variables with these new tax laws and each company would be wise to run the different scenarios to see which option is best.
Some Items to Consider:
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Any distributions by C corporations that are not wages are considered dividends and are taxed at the individual level (double taxation).
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If your adjusted gross income (AGI) on your individual return is less than $315,000 (phaseout starts), you will be able to take full advantage of the 20%Qualified Business Income Deduction (QBID).
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The QBID phases out at $415,000 AGI for law firms and other service businesses. A higher income practice would make converting to a C corporation more worth while, but its not the only factor.
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Another consideration is how long will the new rules last. Currently the 20%QBID expires after 2025 and the 21% rate is permanent but who knows what will happen.