Tag Archives: best small business tax

Tax Planning with GOP Tax Law with Tax Talk on Blog Tax Radio

Tax Planning with the OP Tax Bill uses sophiscated tax laws.  The days of simple tax strategies are gone with the new GOP tax laws.   The GOP Tax Law is written for Big  Business.  If you want to save taxes, you will need to think and act like Big Business.

Learn these sophiscated tax laws with my radio show, Tax Talk. We support a subscription-free internet content supported by advertising.  

Each episode as a 60-second commercial by the company hosting our radio show.

The first episode is the new IRS designer trust… designed by the IRS to avoid  state out of state income taxes. 

Tax Planning with the GOP Tax Bill requires you stop paying state income taxes. 

The trust is the new “Nevada self-directed trust”  You can keep control and avoid state income taxes.  

Tax Planning with the GOP Tax Bill requires you to protect yourself from the IRS’s Big Brother Supercomputer exposes the IRS “financial DNA” of each of us stored in its new Big Data computer.

Tax Planning with the GOP Tax Bill with more Podcasts

Find additiona sophiscated tax planning Podcasts on this link for  Provocative Tax Planning on BlogTalkRadio.  For small business international tax planning with the GOP tax bill, please see this link.

If you need help with tax planning with the GOP Tax Bill, then contact me, Brian Dooley, CPA, MBT, at [email protected]

Five Best Tax Saving Plans For Small Business Owners

The new GOP tax laws start in 2018. Here are the Five Best Tax Saving Plans For Small Business Owners.  

Saving taxes will require some changes in your entity structure.  You want to focus on the low corporate income tax rate.  However, you need to keep certain assets out of corporations.  These assets are your trade name, trademark, copyrights and patents, if any.

Big Business uses many tax plans that are not well known.   The five best tax saving plans for small business owners are:  

 1.    Have one use the accrual basis of account.   This allows you to avoid taxes on prepayments  (more on this link) and expense costs before they are paid.   Have one entity be a corporation.    Corporations can be taxed as a separate entity (which means they pay their own taxes) or a pass through (by election subChapter S of the tax code).

Each of these corporate taxation methods has a unique advantage.   For a start-up, the separate entity has the benefit of allowing you be late on paying income tax on the profits.  Thus, you have more money to invest in growth.

Have one corporation doing business in a tax-free state such as Nevada.

2.  If you have only part-time employees or no employees, then fund your business  with the little-known tax savings of a solo 401K plan  (more on this link).  This works only if you have no full-time employees.  Big businesses use the ESOP retirement plan.  It is a fantastic tool but most small business can not afford the annual compliance cost.

3.  If you make sales via your website, place your website on a server in a tax-free state (learn more here) Also, have the server and website owned by a corporation in the same state.  If your website sells a service or another intangible item, use a tax haven corporation to own the site.  The server needs to be in the same country as the corporation.

4.  Use an irrevocable non-grantor trust to own any passthrough entities.   Of course, have the trust in a tax-free state such as  Nevada.   A non-grantor trust has almost no audit risks.  This type of a trust files its own tax return (Form 1041) and pay its own taxes.  By moving income to this return, you have a lower “adjusted gross income.”

A lower adjusted gross income allows you larger itemized deductions and more tax credits.  It also reduces your chances of a tax audit.

5.  Don’t rely upon year-end planning.  It is a suckers move.  Usually, you end up spending money to be able for a deduction.  Big Business plans a year in advance and not a month before year end.  Each time they add a product or service, they think about tax planning.   The most effective tax planning looks at income and not expenses.

If you need help creating a strategic tax plan, then contact me, Brian Dooley, CPA, MBT at [email protected]   A recent Government study showed that tax planning businesses are taxed at 14%.  For every one dollar spent in tax planning,  ten dollars are saved in taxes.

What Big Business is doing that small businesses is not.

best tax plan, small business tax,

Small business pays more in taxes than Big Business due to a lack of tax planning. Small business thinks of year-end tax plans.  Big business thinks of tax strategies. The average tax rate of big business is 14%.

The U.S. Senate small business tax planning report was startling. While big business (before the 2018 tax laws) have an  average tax rate of 14% (more on this link).  Even with the new tax laws, small businesses are paying taxes at 44%.   

  For decades fools used tax shelters.  They “invest” their money and are told that the investment will give them deductions or a tax credit. These fools do no work hard to pay the as little taxes as possible.  They just wrote a check.

 This is not what Billionaires do.  Billionaires work hard to pay  fewer taxes. 

They avoid taxes by structuring their business deals in what is known as a “tax efficient strategy.”    This allows all of their profit to be used for growth or for saving for that “rainy day”.  

So, why is the small business owner not taxed at 14%?
– Are they too busy for tax planning?
– Can’t find the right CPA or attorney?
– Don’t want to spend money on professional fees?

Congress’s report has some answers.

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President John Kennedy – Our Obligation to Avoid Taxes and to Use Our Talents for the Benefit of Society

Just a short blog post that I hope we provide what I call “staple news”.   The chaos not only between the two parties but in the two parties can cause us to forget the tried and true course.   I picked President John F. Kennedy because he is the darling of the Democrats and those that call themselves liberals.

small business tax planning,

President John Kennedy (Democratic) is the most important president of last century. The President and Supreme Court Justice Holmes agreed… it is your duty to pay the least amount of taxes.

Yet, many of those same people have hatred towards independent voters that support the dreams and economic policies of this great President.

The photograph on the left says it all. While a government job is better than no job, it requires the Government to take (also known as steal) money from a non-government worker. A government job does not create a car, food or exports. The ideal job for a country is one that makes the country wealthier.

If you have a small business, this link has five sophisticated tax plans that your CPA may not have explained to you.  They are used the wealthy and the rich to avoid taxes so that they can create more jobs.

And there is more. Those the have the advantage of a higher education have an obligation to protect the Country by helping the population become educated. I have heard complaints about those that voted for President Trump. If you do feel that way, then please listen to JFK in this video below.

Avoiding Taxes Requires Watching the Politics of a Nation with a Huge National Debt

Successful tax planning looks for trends.  Tax planners look down the road and around the bends.  They structure now for tomorrow.   They don’t rely on year-end tax planning.

A recent article (in France) jumped out at me as I read about the American Republican Parties pretending to “reform” taxes.   France government subsidies and immigration are worst than the U.S. (thankfully).  However as the U.S. National debt combine with many states and cities facing insolvency, the battle between the have nots and the have is  looming.   New York has proposed a new tax that applies only to the haves.

Keep in mind, as you read this article, former President Obama, at an Orange County rally, told the audience those with household incomes exceeding $250,000 were the “rich”.   The $250,000 threshold continues to be the red line in the United States.   

You think it can not happen in America?  Since Democrat  Jerry Brown became governor, income taxes have increased by 30%.  The U.S, has had a tax rate up to 94%.  Add to that your state income taxes, I hope you can see that you must plan now for the future. 

Keep this in mind as you read this article.  

For your small business tax planning, you should watch the trends… which is higher taxes unless you are active in tax planning.   Great tax planning is not year end tax planning.  It is long term with a separate plan for each part of your business. 

I had the article translated  and it is below . 

Economic inadequacy or social justice? For thirty-six years, “the tax on the rich” made controversy. Emmanuel Macron wants to reform it, distinguishing between real estate and financial investments.

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