Time to Change Your Strategy
Financial and Tax Ideas You Can Believe In
If you own a small business or professional firm and your combined income exceeds $250k, you are a target for tax increases. If you aspire to reach the $250k level, you need to plan for tax increases.
Record deficit government spending is threatening the US economy at levels not seen in over 30 years.
Although it is always wise to annually update your tax and financial strategies, this year it's even more important with all the changes taking place.
At Michael R. Choate & Co., CPAs, we believe the time to change your strategy is now. In other words, hope for the best but prepare for the worst. Here is how to begin:
Income Tax Strategies
- Organization Structure - Reconsider your entity type and ownership structure. Should you bring in other family members as owners? Form new or spin off entities? We can show you how and why you should change.
- Owner's Compensation Package - Reconsider your compensation package in light of current and proposed tax increases. Certain benefits are taxed at lowered rates or deferred to future years. (Salary, dividends, insurance, retirement plans, corporate loans, car allowances, meals & entertainment, travel, rent, etc.)
- Employee Compensations Packages - What jobs can be outsourced? Consider part time vs. full time employees. What about employee leasing? There could be many changes in this area.
- And many more... Let us review your unique situation and tailor a tax strategy that works for you. Contact firstname.lastname@example.org.
In a changing economy, we recommend you review and update your current financial strategy. Be proactive rather than reactive.
- Restructure and payoff debt - Let us analyze your company debt and recommend changes in debt structure that will add protection and save interest expense, too.
- Update your business expense budget - What expenses could be reduced if business turns down? What expenses that are increasing could be offset with expense savings elsewhere?
- Cash is king - The good news is that economic downturns often result in buying opportunities. Bargains are available... Save cash to be ready and in a strong position.
- Restructure and payoff debt - High interest credit cards have got to go. Maximum effort should be used to reduce unsecured debt. Refinance home mortgage if possible. Interest rates are at a 30 year low.
- Update your personal expense budget - Identify discretionary spending. What changes could save you money, reduce debt and increase investment cash?
- Review and update your investment strategy - Let us review your investment portfolio and offer ideas for a better way. Compare investment strategy with debt reduction strategy. Also, look at real estate strategy and business acquisition opportunities. Remember, cash is king. You need cash to seize the moment.