Thorough tax planning, whether for yourself or your business, is the most effective way to limit the negative impact of taxes in your life. If something has been properly accounted for in advance, it is unlikely to pose much of a problem or become a burden when the time comes.
The taxes of each individual will vary greatly depending on many personal, occupational, and financial factors so there is no universal solution for tax planning. No matter who you are or what the nature of your business, you can benefit from the assistance of a professional financial advisor when it comes to tax planning.
Cash flow is important for everyone, but for those with overhead costs and potential investment opportunities it is even more so. Good tax planning assists you to maximize your liquid assets at any given time. It provides the freedom to more easily cover regular costs and also helps ensure that valuable opportunities will not be lost because of preventable negative cash flow created by poor or nonexistent tax planning. Good tax planning could potentially help save your business or secure a singular opportunity.
Whether your business is profit motivated or a not-for-profit entity, thorough tax planning helps you determine the best business (or specific transaction) structure to meet and maximize your goals. This is true no matter if you are a tax paying entity like a “C” Corporation; or a “pass through” entity like an “S” Corporation, Limited Liability Company (“LLC”) or a Partnership.