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🗝️ 𝟯 𝗞𝗲𝘆 𝗧𝗮𝘅 𝗦𝗮𝘃𝗶𝗻𝗴 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗳𝗼𝗿 𝗘𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝘀 𝗬𝗼𝘂 𝗠𝗶𝗴𝗵𝘁 𝗕𝗲 𝗢𝘃𝗲𝗿𝗹𝗼𝗼𝗸𝗶𝗻𝗴 Tax season can be overwhelming, but there are strategies every entrepreneur should consider to maximize savings: 💎 Home Office Deduction: Keep proper documentation for home office expenses to avoid audit issues. 💎 Maximize Deductions: Be mindful of overusing deductions like vehicle purchases, and consult a professional for long-term planning. 💎 Business Classification: Choose the right business structure (LLC, S Corp, C Corp) to optimize tax benefits and minimize liabilities. Proper planning today can save money in the long run. Take the time to strategize with professionals. Read the rest of the Entrepreneur Media, written by Kale Goodman to know more about it! (ctto) Share your thoughts and COMMENT below. ⬇️ ➖➖➖ For more than 20 years, I've helped thousands of accounting professionals start & build the premier accounting, bookkeeping & tax firms in their area. My passion has led me to provide the training, certifications & coaching needed to get you paid what you are worth. Using our proprietary system, we give you the confidence and competence to build your accounting business. ***** 👉 Type the word "ACTION" in the COMMENTS below, and we'll give you our FREE training program: “The Turnkey Business Plan for accounting professionals”. This will show you how to start a business, market to clients, and increase your profits. https://lnkd.in/eXCwyJRW #money #taxes #consultants #entrepreneurs #accounting #accountant

Did you know you might be paying 𝐦𝐨𝐫𝐞 𝐭𝐚𝐱 than you need to? 🤔 Let me share a story that might feel familiar... Professional service firm owners often outgrow their business structure without realising it. It's like wearing the same suit you bought for your first job - it might have fit perfectly then, but now it's holding you back. 𝐏𝐢𝐜𝐭𝐮𝐫𝐞 𝐭𝐡𝐢𝐬: You're making more money, hiring staff, winning bigger clients... but your business structure is still dressed like a startup. The Structure Growth Stages 📈 Stage 1: Startup Structure - Sole trader/basic company - Maximum tax exposure - All personal risk - Limited growth potential Stage 2: Growth Structure - Company with trust ownership - Income streaming options - Asset protection in place - Room for expansion Stage 3: Optimised Structure - Strategic profit retention - Family participation - Succession planning ready - Maximum tax efficiency Think of your business structure like a smartphone. Many of us keep using an old phone even when it's slowing us down, has limited storage, and can't run the latest apps. Just like upgrading your phone unlocks new capabilities, upgrading your structure unlocks your firm's potential. Meet Michael (an accountant just like me). His firm grew from a home office to 5 staff in 2 years: 𝐁𝐞𝐟𝐨𝐫𝐞 𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐔𝐩𝐝𝐚𝐭𝐞: - Sole trader setup - Paying 47% tax on profits - Personal assets at risk - No family involvement - Limited funding for growth 𝐀𝐟𝐭𝐞𝐫 𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐔𝐩𝐝𝐚𝐭𝐞: - Company/trust combination - Company tax rate on retained profits - Protected personal assets - Family income streaming - Growth funding available 𝐓𝐡𝐞 𝐑𝐞𝐬𝐮𝐥𝐭?  - $32,000 tax saved in year one - Used savings to fund new practice software that cut file prep time by 40% - Protected his family home - Ready for future growth 𝐓𝐇𝐄 𝐀𝐂𝐓𝐈𝐎𝐍 𝐒𝐓𝐄𝐏: Ask yourself these 4 questions: 1. Has my revenue doubled since I set up my structure? 2. Am I paying more than 37% tax on profits? 3. Could my family help reduce my tax? 4. Are my personal assets protected? If you answered 'yes' to any of these, your structure might be due for an upgrade. Want to know if your firm has outgrown its structure? Drop a "📱" below and let's check if you're due for an upgrade. PS: Just like you wouldn't go back to your old flip phone, none of my clients have ever regretted upgrading their business structure. The only regret? Not doing it sooner. #ProfessionalServices #BusinessStrategy #TaxPlanning #BusinessGrowth #PracticeManagement #AccountingFirm #HelloLedger #GoodbyeWorries #Business101

📃 𝟯 𝗧𝗮𝘅-𝗦𝗮𝘃𝗶𝗻𝗴 𝗧𝗶𝗽𝘀 𝗳𝗼𝗿 𝗘𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝘀 𝗧𝗵𝗮𝘁 𝗔𝗿𝗲 𝗢𝗳𝘁𝗲𝗻 𝗢𝘃𝗲𝗿𝗹𝗼𝗼𝗸𝗲𝗱 Tax season can be stressful for business owners, but there are strategies you might be missing that could save you money. Here are three essential tips to help you maximize your tax deductions and avoid leaving money on the table: 🔳 Take Advantage of the Home Office Deduction ◼ Ensure you document all business-related expenses to justify your home office deductions and avoid potential audits. 🔳 Optimize Your Deductions for Future Benefits ◼ Avoid overusing deductions like vehicle purchases; instead, work with an accountant to create a long-term deduction strategy. 🔳 Properly Categorize Your Business ◼ Selecting the right classification (LLC, S corp, C corp, or sole proprietorship) can significantly impact your tax obligations. By implementing these strategies, you can ensure you're making the most of your tax deductions while setting your business up for long-term success. Take the time to review your options and consult with a tax professional to stay ahead and keep more money in your pocket. Read the rest of the article at Entrepreneur Media, written by Kale Goodman to know more! (ctto) Share your thoughts and COMMENT below. ⬇️ ➖➖➖ Over the last two decades, through strategic tax planning, I have helped multi-entity business owners increase business profits, pay less in taxes and keep more money. Through the "Smarta Method," I have successfully saved business owners on average more than $20,000 in income taxes annually. With over 1,600 tax strategies available, the "Smarta Method" identifies the ones that: 💰 Increase Business Profits 💰 Increase Business Cash Flow 💰 Increase personal wealth 💰 Reduce Taxes ***** 👉 Type “MARTA” in the COMMENTS, and I will send you a FREE PDF copy of my "5 Proven Steps to Stay in Charge of Your Hard-Earned Dollars and Keep Your Taxable Income in Your Pocket! https://lnkd.in/eMt53yuy #finances #yourvaluedcpa #entrepreneurs #startup #inspiration #businessowners

👉 Understanding Different Business Structures in the U.S. and Their Suitability Choosing the right business structure is crucial for entrepreneurs. The decision can affect taxation, liability, and operational flexibility. Below is an overview of various business structures, including partnerships, LLCs, S-Corps, and C-Corps. 1. Partnership ⭐ Simplicity and Flexibility-Easy to establish with less regulatory burden. ⭐ Direct Taxation: Pass-through taxation avoids double taxation. ⭐ Shared Responsibility: Partners can leverage each other's strengths. ⭐ Personal Relationships: Strong personal ties can enhance collaboration. Best Suited For Small businesses with a few owners looking for flexibility and direct control over operations. 2. Limited Liability Company (LLC) ⭐ Limited Liability Protection:** Shields personal assets from business liabilities. ⭐ Pass-Through Taxation:** Avoids double taxation. ⭐ Flexibility in Management:** Owners can choose how to manage the business. ⭐ Fewer Formalities:** Less regulatory burden than corporations. ⭐ Ability to Attract Investors:** Can offer membership interests to investors. Best Suited For Entrepreneurs seeking liability protection and tax flexibility while wanting to maintain a manageable level of complexity. 3. S-Corporation (S-Corp) ⭐ Pass-Through Taxation:** Income is not taxed at the corporate level, avoiding double taxation. ⭐ Limited Liability Protection:** Personal assets are generally protected from business debts. Best Suited For Small to medium-sized businesses aiming for tax benefits and liability protection while meeting the eligibility requirements. 4. C-Corporation (C-Corp) ⭐ Limited Liability Protection: Shields personal assets from business debts. ⭐ Easier Capital Raising: Can issue multiple classes of stock to attract investors. ⭐ Unlimited Growth Potential No limit on the number of shareholders and can include foreign investors. ⭐ Perpetual Existence: Continues regardless of ownership changes. Best Suited For Larger businesses looking to scale, raise capital, or prepare for an IPO, with significant potential for growth and investment. 5. Sole Proprietorship ⭐ Easy to Set Up: Minimal registration and paperwork required. ⭐ Complete Control: The owner makes all decisions without consensus. ⭐ Tax Simplicity: Income is reported on the owner's tax return. ⭐ Lower Cost: No incorporation fees or complex regulatory requirements. Best Suited For Individuals starting small businesses or freelance work, seeking simplicity and total control over operations. Choosing the right business structure involves evaluating your business goals, liability concerns, and tax implications. Whether you prefer the simplicity of a sole proprietorship, the protection of an LLC, the flexibility of a partnership, or the potential for growth with a C-Corp, understanding these structures is vital to your entrepreneurial success. Stay tuned for more insights into U.S. taxation. Chidimma Nwosu-Okoli

Blueprint for Success: Crafting the Ultimate Business Plan for Your Tax Prep Venture Imagine stepping into the world of entrepreneurship with a clear, strategic roadmap in hand. This was the game-changer for Alex, a budding entrepreneur ready to dive into the tax preparation industry by acquiring "Reliable Returns Tax Service." Alex's Journey Through Business Planning: 🥇Vision and Goals: Alex started with a vision for "Reliable Returns," outlining how he planned to expand services and harness the latest tax software, setting clear, measurable goals. 📍Market Analysis: He delved into the local market, identifying key competitors and client needs, ensuring "Reliable Returns" could stand out in the crowded tax prep landscape. 🎗️Operational Strategies: Alex mapped out operational logistics, from staffing to client management processes, all designed to streamline operations and enhance client satisfaction. 🏦Financial Projections: Alex developed realistic financial projections, providing a clear picture of expected revenues, expenses, and profitability. 🍾Risk Management: He identified potential risks and devised strategies to mitigate them, preparing "Reliable Returns" for unforeseen business challenges. Why a Business Plan is Non-Negotiable for Tax Prep Companies: 👉🏽Clarity and Direction: A business plan gives you a clear direction and sets measurable objectives, essential for new owners navigating the complex tax industry. 💵Funding and Financing: Lenders and investors need to see a solid business plan before committing funds – Alex knew that a well-crafted plan could open doors to necessary capital. 🍩Operational Efficiency: It lays out the operational framework, helping you streamline processes and improve client service – crucial in the tax prep world where efficiency equals profitability. 🥠Market Positioning: A good business plan helps you understand your market position and competitive edge, key to attracting and retaining clients. 📈Growth Strategy: It allows you to plan for the future, setting the stage for growth and expansion in the evolving tax services sector. Advice to Aspiring Entrepreneurs: Embark on your tax preparation business journey with a solid plan in hand. Let Bethany McClellan and Rapid Business Plans illuminate your path. The right business plan isn't just a document – it's your blueprint for success. Alex’s adventure from aspiring entrepreneur to confident business owner highlights the transformative power of a well-conceived business plan. Are you ready to chart your course in the tax preparation industry with the same clarity and foresight? #BusinessPlanEssentials #TaxPrepSuccess #EntrepreneurialJourney #StrategicPlanning #RapidBusinessPlans Peak Business Valuation

Most common tax mistakes new businesses make (and how to avoid them)   Starting a business is more than a career move: it’s a leap of faith. New business owners build everything from the ground up, juggling countless responsibilities and making decisions that could shape the company’s future. But in the rush to grow and succeed, taxes and finances often take a back seat. And that’s where trouble starts. Small oversights can lead to penalties, missed opportunities, and even cash flow problems.    Here are the most common and avoidable mistakes new businesses often make when it comes to taxes:   1. Not Keeping Proper Records - Lost receipts, incomplete invoices, or forgotten expenses—it happens more often than you think. Messy records make tax time stressful and can mean missed deductions or worse, audits. Whether it’s a simple spreadsheet or an app, staying organised from day one makes all the difference. 2. Mixing Personal and Business Finances - Many new business owners blur the lines between personal and business expenses. This creates confusion and raises red flags with tax authorities. Opening a dedicated business account is a simple but effective way to avoid this. 3. Missing Out on Deductions - Home Office? Business travel? Startup costs? Many new businesses don’t claim deductions they are entitled to, simply because they don’t know about them. A little research or a quick chat with an expert can help unlock some serious savings. 4. Skipping Professional Advice - Many new businesses try to save costs by doing everything themselves, including taxes. Hiring professional help can feel like a stretch when a new business is starting out. But the reality is, tax mistakes can end up costing much more in the long run. Today, affordable solutions like software or bookkeeping services make it easier to get expert support without breaking the bank.   What’s the takeaway? Stay organised, keep personal and business finances separate, and don’t be afraid to ask for help. A little attention to your finances now can save a lot of headaches later.   What’s one piece of financial advice you wish you knew when starting out? Share below—we’d love to hear your thoughts! - #SmallBusinessTips #TaxPlanning #FinancialAdvice #BusinessGrowth #Entrepreneurship #StartupFinance #TaxMistakesToAvoid #MoneyManagement #BusinessSuccess #TaxDeductionTips

If you own a business or have income from a side hustle, the amount of unknowns are staggering… - What does this mean for taxes? Do I file a business tax return? What can I deduct? What is considered income? What is taxed? - What happens when I add an employee? How do I pay them? What are payroll taxes? What are all of these payroll tax filings? What is a 1099? - How do I manage my business? What is QuickBooks? How do I track my income and expenses? What about banking and credit cards? What about my vehicle? What is a home-office deduction? - How do I pay myself? Can I take money out of my business bank account? Can I pay my spouse? Can I pay my children? What does it all mean? - What is an S-Corp and why do I hear people saying I should become an S-Corp? What are self-employment taxes? - What about insurance? Do I need business insurance? What about medical insurance? - Can I use my personal credit card for the business or does the credit card need to be in the name of the business? How about my vehicle? How about a loan? - What are these annual reports and other state filing reports that need to be filed? What is a BOI report? Sure, you can go cheap and utilize an accountant and speak to them once a year, simply for filing your tax return. They will spend 30-60 minutes on you and charge you at least $750-2,000. But how about all of these other questions? These questions can have an enormous impact on your business and taxes. How about tax planning and strategies that save you $10,000+ per year? How about having accurate and organized books so you can know your income/expenses and taxes at all times during the year? How about having all of this stress of the unknown eliminated, and adding a legitimate business CPA to handle all of this so you can focus on running your business and growing your wealth? The best part - The tax savings often offsets the fee entirely or close to entirely. The value proposition is extraordinary and the smartest business owners have realized this, and are transforming their businesses, lives, and future wealth when they make this choice. Times have changed from the days of CPAs only seeing clients once a year for a tax return filing. The market has spoken. Those who embrace it will thrive and flourish.

When it comes to setting up/running a company, one of the first questions that business owners ask accountants or google is “what even are dividends and how much tax will I pay?” There’s no such thing as a stupid question but when it comes to finding answers it’s not always easy, you’re met with a lot of ifs buts and maybes, many different answers to the actual question and so more than likely you end up more confused than you were in the first place.   This is why we try to make things as straight forward and easy to understand, so that our clients can do what they do best, run their business. So, let’s get down to it, when you’re running your own business, you’re no longer getting a payslip from your employer, but you do obviously need to withdraw money from your company for all that hard work you’re doing. A lot of our clients take their full tax-free personal allowance as a salary over the year to start with, then their remaining income as dividends. Yes there’s a few things you must take into consideration and one of the first things is that you do have to be making a profit, but really this is common sense, after all you want your business to thrive so going into debt or leaving nothing behind to pay the bills isn’t an option. It may take a little time if you’re just starting off to start seeing your dream becoming reality and to start living your best life so don’t be disheartened and keep pushing, it’ll be worth it. Once you’re starting to see more left behind in your account after all your expenses and any tax liabilities are covered, that’s when you can think about dividends. It’s a tax efficient way to pay yourself and because it’s not a basic salary there’s no National Insurance contributions to think about. So, what about tax? Well unfortunately your dividends are not tax-free, but they don’t attract they usual rates that you’d be liable to if you’d taken the money through payroll. Here’s the basics of it, the tax you’d pay this tax year ending the 5th of April 2025 would be calculated and paid through the self-assessment tax return process. You benefit from the first £500 you take as dividends tax-free (down from £1,000 for the tax year ending the 5th of April 2024) then after this it depends on the amount you’ve drawn from the business. There are 3 different tax bands, all lower than the general income tax bands you’re used to seeing. After you’ve taken the personal allowance if you take up to £37,700 in the year, you’d be subject to 8.75% tax on the amount, the next bracket is £37,701 up to £125,140 which is taxed at 33.75% then finally anything over £125,140 is taxed at 39.35%. I’ve rambled on a bit, but we’ll just do a little example in the comments to finish off. #dividends #tax #makemorekeepmore #taxefficient #keepgoing #ukbusiness

Yesterday I mentioned that Twenty Eighty is entering a new era, and we have a number of initiatives on the go. So for those interested in following our journey, you might be wondering what, exactly, am I talking about. Whelp... here it goes: Twenty Eighty has always been about freedom. That’s why we called ourselves Twenty Eighty actually. It’s a play on Pareto’s law, where the biggest results are typically created (or driven) by the smallest actions. Put another way… our clients do what they do best, we do what we do best, and we are all better off because of it. We are doubling down on that vision of freedom. To put that in words... We envision a world where we can help our clients with their finances cradle to grave. We envision a world where we take a holistic approach to drive better strategies and better results. Think of how nice it would be if you could come to a firm that knew your business affairs, personal affairs and sat a table of their experts down to talk about you, and what's best for you in every aspect. That's what we're aiming for. In this world we’re putting the focus on people first. To us that means that our relationships will be the most valuable asset our clients have (how else can we properly advise if we don't have that relationship?). In this world we're taking an advisory first approach. Nothing we do will be commoditized… not our bookkeeping, not our tech, not our tax. Everything will be transformational (this is my favorite word of 2024). And to do it all, we’re taking this world vision and expanding it across new service lines: tax (we always did basic - we're completely upping our game here), personal financial planning and investment management. What does this all mean? Well, for our clients it will mean: - They get a single touch point. With a team that knows everything about them. Advising them on everything tax and finance related, both for their personal self and their business. - They will get high touch, high value relationships, something that is often talked about, but seems lacking in our industry. - They get a cross functional team, with varied skill sets and varied view points. - They know exactly where they sit financially, something that should be easy to deliver, but is actually quite difficult. - They will know exactly where they should be going, something that is also easier said than done. For our clients it will also mean: - No more communication issues. - No more wasted time. - No more missed opportunities. - No more wondering if there’s something better. To some this might seem over the top or altruistic. To us, it’s what most small business owners are looking for… and it’s the vision of freedom that we think they deserve.

Side Hustle Tax Tips: Is It a Hobby or a Business? When it comes to filing taxes, hobbies and businesses are treated differently. The key difference is that businesses aim to make a profit, while hobbies are pursued for pleasure or recreation. Whether you’re enjoying a hobby or running a business, if you receive payments through apps for goods and services during the year, you may get an IRS Form 1099-K. These payments are taxable income and must be reported on your federal tax returns. How to Determine if It's a Hobby or Business Deciding whether your activity is a hobby or a business involves considering several factors. Here are some key questions to help you decide: Profit Intent: Does the time and effort you put into the activity show you intend to make a profit? Profitability: Does the activity make a profit in some years, and if so, how much profit? Future Profit: Can you expect to make a future profit from the appreciation of the assets used in the activity? Income Dependency: Do you depend on income from the activity for your livelihood? Losses: Are any losses due to circumstances beyond your control, or are they normal for the startup phase of your type of business? Operational Changes: Do you change your methods of operation to improve profitability? Businesslike Manner: Do you conduct the activity in a businesslike manner and keep complete and accurate books and records? Knowledge and Expertise: Do you and your advisors have the knowledge needed to carry out the activity as a successful business? Carefully reviewing these questions can help you determine the nature of your side hustle and ensure compliance with tax regulations. For personalized advice, consult with a tax professional.