Having a financial advice coach can possibly save you thousands come tax time.
One of the last things that a small business person considers in starting a business is the impact of income and other taxes on the bottom line. Coaching for taxes is a big part of the whole coaching experience.
Setting your structure for success from the bottom line up is one of the first steps for a beginning business; established businesses can also make changes to their structure if need be to take advantage of tax perks.
Taxes are be one of the biggest expenses of a business; reduction and deferral of these taxes directly impact the bottom line of your income and your cash flow.
What will you be? An S-Corporation might help you plan for social security taxes, but it might also limit any retirement deductions. An LLC is great for special allocations, but the guaranteed payment provisions might require more complexity. Sole Proprietor or Disregarded entity. Might be just the thing for your business when losses are occurring, but with substantial profits and the 3.8% surtax, does it work for you? Don’t forget the C corporation….but not if you own property! There are pros and cons to every type of organization.
You run a business and can hardly be expected to know how to answer all of these questions, that is why you hire good accountant’s and attornies. Your coach will help you to develop the questions and project the future so these professionals will be able to do their job at reasonable fees. Your coach should earn his keep in this area alone.
Taxes are complex, but you need a basic understanding of them to be in business