How much can a small business save with a proper tax strategy?
The amount varies by business structure, revenue, and industry, but most small business owners who work with a tax strategist rather than just a tax preparer find they reduce their tax liability by 10 to 30 percent annually. The difference is planning ahead rather than reporting after the fact.
What is the difference between tax preparation and tax strategy?
Tax preparation is reporting what already happened. Tax strategy is planning what will happen so that your liability is reduced before the year ends. A tax preparer files your return. A tax strategist helps you make decisions throughout the year — on payroll, purchases, structure, and timing — that reduce what you owe.
Should my small business be an LLC or S-Corp for tax purposes?
It depends on your revenue and how you pay yourself. An S-Corp election can reduce self-employment tax significantly once your business generates consistent profit, typically above $50,000 annually. An LLC taxed as a sole proprietorship is simpler but often more expensive at higher income levels. This decision should be made with a tax advisor who understands your full financial picture.
When should a small business owner start thinking about tax strategy?
Day one. The structure you choose when you start your business has tax implications for years. Most business owners wait until they owe more than they expected and then scramble. The owners who pay the least in taxes over time are the ones who plan from the beginning and revisit their strategy every year.
Does Premium Services Corporation offer tax strategy in Spanish?
Yes. Premium Services Corporation provides full tax advisory services in both English and Spanish. Dr. Marla Sabater and her team serve bilingual business owners across Rhode Island and New England.