Stick Like Glue Radio #124 On this episode of Stick Like Glue Radio I interview entrepreneur and tax coach Diane Gardner, which works with entrepreneurs and small business owners all over country. This is a nugget rich and money saving show – do not miss it!
On this episode of Stick Like Glue Radio I interview entrepreneur and tax coach Diane Gardner who works with entrepreneurs and small business owners all over country. This is a nugget rich and money saving show – do not miss it!
Main Questions Asked
What is a tax coach and why do small business owners and entrepreneurs need one?
What are the biggest mistakes you see entrepreneurs and small business owners make when it comes to tax?
How would a small business owner work with someone like yourself?
Are there any general rules about LLC versus S-CORP?
How does a business owner decide what type of business they should have?
If someone is a solopreneur, how do they decide at what point to get financial help?
What is the difference between tax preparation, tax projection and tax planning?
Key Lessons Learned
Billions of dollars are overpaid each year by small business owners due to not taking advantage of deductions
Less than common deductions can mean thousands of dollars each year on tax
A tax coach takes a look at your tax and financial information, conducts analysis and identifies areas where you are possibly overpaying taxes
Businesses often outgrow their initial entity type e.g sole proprietor, LLC or S-Corp
Having the wrong entity for your business is a big tax mistake that can cost you
Deciding on your Entity
An LLC is very flexible and can act like a sole proprietorship or a general partnership, S-Corp or C-Corp
LLC are state controlled and some states don’t recognize or ‘like’ it
When deciding on what kind of business you should be, it pays to do an in depth analysis from a liability and tax standpoint
Ask yourself how much liability exposure you have in your business, how important is continuity of life and fringe benefits?
When to Get Assistance & How It Works
Its best to have a professional assist with your tax return from the beginning
When you have employees is a good idea to have a book keeper as some laws are federal and some state
These days you can work with a professional easily; Email, phone, skype, mailing, Dropbox is all part of working with a remote tax assistant or tax coach
Tax Preparation, Tax Projection and Tax Planning?
Tax Preparation – Recording history of what happened in the previous year
Tax Projection – A separate engagement and takes historical data and have consultation on what business is doing in the current year
This estimates the business expenses as well as gross and net income
This gives the business an idea of how much tax they owe in the coming year
Tax Planning – Working into the future 3-5 years
Takes an all encompassing look at the personal and business life
Look for money already being spent that could potentially be a tax deduction
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