Personally speaking, Summer is a great time of year for beaches and BBQs, but when it comes to the business side of your life, Summer can also be a great time of year to thoroughly go over your business financials and other important areas when it comes to overall business operations.
Here are 5 Mid Year “Smart” Business Tax Strategies that will help you with things you can do now…in order to have a better outcome with your Business taxes when it comes time to file next year.
While you’re spending time at the Beach 🏖…here’s a few things you can do:
1. Re-evaluate your Business Structure. You may have started out as a Sole Proprietorship when you launched, but maybe it’s time to convert to an LLC, or maybe even form a Corporation or an S Corp. With the new tax laws that went into effect as of 2018, it might actually help your business in a great way if you switch your business structure. And if you never officially “established” a business structure, maybe now is the time to do so!
Click Here to visit my other website – Hardge Connections LLC – where I discuss the pros and cons of the different business structures.
2. Review your business financials. Too often we Entrepreneurs wait until the end of the year to begin racing around to organize our finances, but that brings a lot of pressure and will often result in lots of important information being left out due to you operating in “rush mode” as well as you standing a higher chance of making mistakes. It may help you to look over your financials now while we’re in “mid year” to begin getting things in order including populating your bank and credit card statements, among other things.
3. Review your Estimated Tax Payments. Now is a great time to review the Estimated Tax Payments you’ve made so far this year, and if there were no payments made, make sure you take a look at your business revenue earned from January through end of June in order to determine an estimated amount you should send to cover your Federal “AND STATE” income taxes. When doing this calculation, don’t forget that you are entitled to deductions, so you really may only owe the estimated tax that applies to the estimated net profits thus far.
4. Review and/or set up your Retirement Accounts. There are different maximum contribution levels based on the type of retirement account you have. Two popular plans are SIMPLE and SEP (Simplified Employee Pension Plan) but I encourage you to Click Here to visit my other business website – Hardge Connections LLC – where I talk in greater detail about Retirement Account options.
5. Meet with your Tax Professional if you have one. He/she can help you with all of the above to help ensure that your business financials are on the path to success and that you are implementing strategies to help you keep more of what you make. After all, it’s great to DIY your business tax planning but sometimes, in order to truly maximize and see results with business tax savings, you might do better leaving it to the professionals.
If you are seeking a quality, experienced tax professional who understands your business, and can help you to truly rake in all the tax benefits of owning your own business, etc, Contact Me today.