Here is a trick that not a lot of business owners know about. Tax returns. As a business owner, it is well known that you must play distinct roles to keep your profits coming in. However, it is impossible to be a free-kicker and a goalie at the same time. You must complete different tasks, on a daily, weekly, and monthly basis. But some of these tasks must be completed for you, usually by a third-party provider who knows what is best for your business. An expert strategic tax planning company can help you out. Here’s how it goes and why you should work with a third-party provider like Corporate Business Solutions Inc. to get the most out of your business tax returns.

Tax Expertise

The most crucial factor why you should be working with a third-party provider is their expertise. There are tax professionals out there that simply know the ins and outs and all the loops of business tax returns. They can easily represent you to the IRS concerning taxes, as they stay updated with all the new state and federal tax laws and policy changes. The policies change every year, and as busy as a business owner is, it is time-consuming to keep updated.

When you work with a well-versed strategic tax planning provider you always stay on top of your game, as you are also making sure you come clean through every audit, and you do not miss any tax opportunities. An expert will help you get the most out of your business tax returns while also assuring that you do not pay more than you should be paying.

Business Credits and Deductions

Your local CPA is focused on tax preparation and by nature is looking at past transactions to keep you right with the IRS.  However, there are often opportunities for tax savings by working with a firm that utilizes attorneys who specialize in tax matters who bring an entirely different level of expertise than the CPA who prepares your returns.  These specialized attorneys can prepare a strategic tax plan that can take advantage of certain tax credits and deductions for future returns by making changes to the operation of the business.  Sometimes this may involve creating multiple entities that can provide both asset protection and tax savings that result from the re-organization. Business owners may also find tax savings in changing the way they compensate themselves from a simple paycheck.  Tax attorneys can provide a level of expertise that is now available to small business owners which heretofore were only available to large corporations.

Donations

Donations to any charitable organization that qualify under the law are usually deductible. So, consider developing a list of charitable organizations the business would like to support to contribute to the social good of the community. Receipts are mandatory for all the donations that you make for cash or goods, as evidence of the value of the cost of the materials that you have donated.

Tax Returns

Keeping track is a must if you are to get the most out of your business tax returns.

Every business owner should consider getting a strategic tax plan done by a firm that specializes in tax planning for small and medium-size businesses by tax attorneys.  The IRS is not going to tell you what credits and deductions you may be missing!

Going into a business partnership is like going into a marriage but without any of the “fringe benefits’’.

You could argue that you should know more about your future business partner than you need to know about your future spouse!

Before the partnership begins

You need to know if your partner has any skeletons in their background, as well as why they want to get into this business with you, and what their vision is for it.

You will almost certainly vet any employees you hire, so vetting your business partner is even more crucial.

If there are issues, make sure you are fully aware of them and discuss each one fully. If you and your partner cannot get on the same page over each of the issues, walk away.

Make sure you both understand all the paperwork you are signing and use different lawyers.

If any business partner is married, or they get married, ensure their spouse also signs all partnership and operating agreements. This is to protect both partners and the business in the event of a divorce.

The partnership agreement

Make sure all parties clearly understand who is responsible for what, and what each can and cannot do on behalf of the business. These duties and responsibilities need to be written down and agreed to.

Make sure that all contributions of capital are noted and updated, who receives the profits, distributions, compensation, and losses from the business, and under what circumstances might a vote on some issue occur.

Exit strategies and buy-sell agreements are prepared and fully understood. Don’t forget to utilize the various insurances developed to protect small to medium-sized businesses.

Be aware of what situations might trigger expulsion from the business, and if a partner does leave, will a non-competing provision be put in place, and how will that work.

Successful partnerships

Businesses that do operate successfully are usually set up as limited liability companies as this provides many protections for all parties concerned with the business.

Other common features of successful partnerships include accurate recording of all communications and retention of all documentation. It sounds boring, but it can be a real business saver when things might seem to be turning sour.

Ensure all tax information and bookkeeping duties are handled professionally and legally. Don’t ignore this. Too many businesses have run into problems because of a trusted employees taking 100% responsibility for all the money transactions and secretly pocketing a small fortune for themselves.

This leads to the most important factor in achieving a successful business partnership.

Do not think that the business will ever get to a point where it practically runs itself. Once you take your eye off the ball of running the business something unexpected will almost certainly crop up and you will be unprepared for it.

Checks and balances must be maintained, each partner must keep an eye on the other partners to ensure they are still pulling their weight and taking their business responsibilities seriously.

For professional advice to make sure your business will always stay on the right track, you can always talk to Corporate Business Solutions Inc. for assistance.