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Strategic Tax Planning Is the Answer Most Small Business Owners Are Looking For

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BUFFALO GROVE, Ill., April 15, 2011 /PRNewswire/ — For most small business owners, their business is the most valuable asset they have. Yet they often do very little to protect it and maximize its after-tax income.

While millions of Americans are filling out their federal and state tax returns, small business owners would be wise to consider whether they could benefit from strategic tax planning. Erin Hollis, Director, Tax Services for Strategic Tax Advisors (STA), said, “Tax laws for businesses are more complicated than for individuals. And, many small business owners are unaware of how they too can benefit from the same tax planning strategies which large corporations have employed to legitimately minimize their future tax obligations.” STA specializes in providing strategic tax planning advisory services to the owners of small and medium-size businesses in the United States and Canada.

STA has devised a simple “10 Question Self-Review for Small Business Owners” to determine whether they could benefit from strategic tax planning.

  1. Do you pay yourself as an employee, a business owner, or both? Do you know the difference? And, what tax implications were considered in making this decision?
  2. Has your tax preparer and/or attorney ever discussed the business and personal financial benefits available to you from creating a strategic tax plan?
  3. Why did you choose the present legal structure of the company and what tax benefits do you gain from this legal structure compared to other alternatives?
  4. Do you have a tax-advantaged plan for your future exit from your business?
  5. What is your contingency plan for the business, if you are forced to exit involuntarily (e.g., death or disability)?
  6. How much money do you need to retire comfortably and what part will your business play in funding that future retirement?
  7. When was the last time your estate plan was updated?
  8. What changes in assets, intentions, or tax laws have occurred since you last reviewed your retirement plan and estate plan?
  9. How will the value of your business affect the estate taxes due upon your death?
  10. Has your tax advisor discussed with you current tax incentives applicable to your business, as well as those proposed in the new budget bill?

Hollis said, “If business owners can’t answer all ten questions with absolute certainty, then it would be wise to seek an independent review of their tax-related circumstances. This is the only way to be certain that the present needs of the business, and the future benefits to the family, are fully taken into account.”

For more information, please go to http://www.sta-na.com/

 

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