Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
1
Business Basics & Tax PlanningAnswers for the Small Business Owner
Presented By: IFS Consulting Group, LLC
2
With SCORE, You Are Not Alone on Your Journey
For over 50 years, SCORE has served
as America’s premier source of free
business mentoring and education.
As a resource partner of the U.S.
Small Business Administration (SBA),
SCORE has helped more than 11
million entrepreneurs through
mentoring, workshops and educational
resources since 1964.
3
SCORE Can Help You Find the Way Ahead
• Free one-on-one business
counseling and mentoring
• Business advisory services
• Low cost local workshops
• Free templates and recorded
webinars
To meet with a mentor or learn more
about SCORE’s resources, visit
washingtondc.score.org
4
Self Employed Professionals Have Three Common Struggles
• Managing their tax liability
effectively
• Planning for retirement
• Getting loans and financing
*This workshop is intended to provide basic information to address each area
5
Getting Started
6
Do You Want to Be in Business or Do You Want to Have a Company?
• Business – is the activity of making
one’s living or earning money by
producing or buying and selling
products (goods and/or services).
• Company – a legal entity made up of
an association of people, be they
natural, legal, or a mixture of both for
the purpose of carrying on a
commercial or industrial enterprise.
7
8
9
10
Seek Professional Guidance
Score Mentors
SBA
Small Business Development Centers
Shopkeep Small Business 101
Business USA
Entrepreneur.com
Trusted Experienced Business Owner
11
Guidance Should Help You:
• Identify where you are
• Clarify where you are going
• Understand what’s needed to help
you get where you are going
• Simplify the process of getting
there
12
John Doe
is not
“aka”
JD Enterprises
13
Establishing the Businesses Identity
• Create a distinguishable business name & logo
• Create business letterhead
• Establish a company website & email address
• Business name on business cards
• Establish a business address office away from home
• If appropriate wear clothes with the company name & logo
• Establish a separate social media identity for the company
• Business bank account, credit cards, debit cards, etc.
• Have a separate business phone number
• Use public listings sources e.g. yellow book, white pages, etc…
14
15
The Importance of Being Organized
Time is not money, but time spent needlessly
because of inefficient processes and poor
management strategies can be and often is very costly!
16
The Importance of Being Organized
• Maintain income statements & balance
sheets
• Always use contracts and agreements
when applicable
• Establish a designated voicemail for the
company
• Use the company mailing address for
business
• Define & list the company’s business
hours
• Use stationary with the company’s
name & logo
Operate as a company
17
Establish a System of Paying, Receiving & Recording Compensation
18
Use Expense Sheets to Record, Track, & Manage Expenses
19
Income Statements & Balance Sheets
20
21
Tax Strategies for
Self-Employed
Professionals
22
Tax Cuts & Jobs Act Impact on Business Owners
• Changes in the corporate tax rates
• 20% Deduction for pass through
entities
• 100% depreciation option
• Reduced individual rates
• Bigger vehicle tax breaks
• No more client entertainment
deduction
23
What can I
do to lower
my tax rate
24
Income Shifting
25
Reclassifying Expenses
This is not a vacation….
I’m working in the field…
26
Tax Planning Strategies Continued…
• Using dividends
• Company
contributions
• Qualified savings plan
27
The Advantage of Dividends
28
Retirement….
It’s all on you!!!
29
This doesn’t have to be your Your Retirement
Plan?
30
Retirement Savings
As “Old” Joe Friday Would Say …!
31
The Individual 401(K)
32
Individual 401(k) vs SEP
Contributions using an Ind-K
33
Individual 401(k) vs SEP
34
Questions?
35