What every business owner should know when it comes to filing taxes!

Proactive Bulletin BoardThe tax code contains many tax-saving and reduction opportunities, but to take advantage of these opportunities you must act throughout the year. When tax filing times rolls around, it’s often too late to take advantage of many of these tax savings opportunities. The most important thing you can do is meet with your tax professional every year between June and November, tell them how things are going, and ask them to help you find tax-saving opportunities that will reduce your taxes and provide other benefits. For example, it might make sense to put your kids or another family member on the payroll. Remember, they need to do something to earn their place on the payroll, but that can be anything from stuffing envelopes to answering phones or even cleaning the office. This transfers income from your tax bracket to theirs and can even qualify them for a ROTH IRA. Setting up a pension plan might just make sense as well, as it could reduce your taxes, put money away for retirement, and even provide some funds that are creditor proof. There are many opportunities, but you have to be proactive to take advantage of them and you must do this in a timely fashion.