A proper tax strategy ensures you’ll pay the least amount of tax allowable by law, regardless of your business or investment situation.
At Capital Advisory Group, our clients often ask: “What is the most important consideration in creating a tax strategy”.
Like so many things, there is no easy button. But, when it comes down to it, there are 3 important things to consider when creating your tax strategy:
1. Your Financial Goals and Dreams
Start by identifying your personal and financial goals and dreams.
Where you want to go, and what you want to do has a significant impact on how your tax strategy is created today and how it will evolve along with you.
A successful tax strategy takes into account your goals for your business, your investments and your family. Be sure you create a tax strategy that fits within all these goals!
2. Your Business Structure
Meet with a trusted advisor and review how your businesses and investments are currently structured. Then, examine the advantages/disadvantages of other structures - both now and for the future.
Perhaps you should change the type of entity (or entities) you currently have? Perhaps you should add entities to take advantage of tax savings available to certain entities?
A trusted advisor who understands the benefits of various entities can help you determine the entity structure flexible enough to serve as the basis for tax savings for the rest of your life.
3. Your Deductible Expenses
Do you have expenses you are paying personally, that, if properly structured and documented, could be paid by your business or investment activities?
If you have such expenses, you’ve just found permanent tax savings! Your tax strategy should identify the deductions, how to document them and who (you or your business or your investments) should pay them.
Don’t stop now. As you begin implementing and executing your tax strategy, it’s important to continually monitor your tax strategy to make sure it is still serving you to ensure you pay the least amount of tax allowable by law, regardless of your business or investment situation.
Give us a call today at 636-394-5524 to review your tax strategy and to ensure you pay the least amount of tax allowable by law.