If you are thinking about starting a business or wondering how you can make the one you already own run more effectively, consulting a financial professional can deliver valuable benefits. A lot of details go into making a business run smoothly, and few business owners have the specific knowledge and experience necessary to properly attend to all of them. By consulting outside experts about questions such as business structure, taxes, and payroll, you can save yourself time, stress, and the consequences that flow from missteps.
When you start a business, one of the first questions you will have to answer is what its structure will be. You might choose to form a sole proprietorship (the simplest business structure), a general, limited, or joint partnership, a limited liability corporation (LLC), or an S corporation (S Corp). Each type of business has its own legal and tax consequences. A business finance professional can help you determine which type bets fits the needs and goals of your new business. If you already own a business, a professional can advise you of whether and when it may be beneficial to switch to a different business structure as your business grows and its needs evolve.
If your business has or will have one or more employees, you need to think about payroll. Payroll tasks can eat up a great deal of a business owner’s time, and even the most diligent can make costly mistakes. With constant changes in the tax code, it is hardly surprising that one in three business owners face IRS penalties for payroll tax errors. You can reduce the risk of error and focus more of your time on making your business successful by hiring a professional to do payroll for you. A competent payroll service will keep your payroll records, pay your employees on time, and accurately calculate taxes to keep the IRS off your back.
Professional Tax Planning and Preparation
The sooner you begin tax planning for your business, the more profitable it can be. Missing out on valuable credits and deductions gives your business an unnecessary handicap. If you are just starting out, we can help you claim start up costs so you can start saving from the beginning. We can also help you make smart moves to limit your company’s tax liability in the future. Aside from choosing the most cost-effective business structure, your can realize tax advantages by providing various benefits to your employees.
Putting a retirement plan in place for your employees can have multiple advantages. It can help you to attract and retain high quality employees who will contribute to your success. According to a study by MetLife, the availability of retirement benefits is the third most important factor in employee loyalty to small businesses. Even the smallest companies can begin a 401(k) for its employees. The SIMPLE 401(k), for example, is especially designed for small businesses and relieves the employer of costly compliance measures that are required when providing a traditional 401(k). Whichever plan you choose, you may be eligible for a tax credit of up to $500 per year for the first three years that you offer it. Because employees’ contributions to a 401(k) are pre-tax dollars, offering a retirement plan can also reduce your payroll tax obligation. Speak with a tax and financial planning professional to find the best retirement plan option for your business.
Employers with fewer than 25 employees can take advantage of tax incentives for voluntarily providing medical insurance offered through the Small Business Health Options (SHOP) marketplace. Beginning in 2014, qualifying employers can claim a credit of up to 50% of health insurance premiums for two consecutive taxable years. A business tax professional can help you determine the specific benefits of setting up a health insurance plan for your employees.
Your business may benefit from providing work opportunities for individuals in certain at-risk categories, including some veterans, workers with disabilities, and those on public assistance. Although the Work Opportunity Tax Credit (WOTC) is currently expired, negotiations are underway in the Senate to extend this benefit through 2015. See the IRS website for details of the credit.
Boelman Shaw Capital Partners provides tax and financial consulting for any type of business. Contact us today for assistance with payroll, business structure, and tax planning to help your business run more effectively and profitably.
Material discussed herein is meant for general illustration and/or informational purposes only. Because individual situations will vary, the information shared here should be used in conjunction with individual professional advice.