It makes good financial sense for small business owners to continually evaluate the state of their finances and tax obligations. This can become glaringly apparent to you if your outcome this tax season was not what you were expecting.
To position your small businesses for more favorable results in the year ahead, it’s important to take proactive steps and implement tailored strategies to optimize your tax situation.
Here are a few considerations to help point you in the right direction:
Review your business structure. The legal structure of your business can have significant implications for your tax obligations. Should you change from a sole proprietorship to an S Corporation, Limited Liability Company (LLC), or Partnership?
Plan for quarterly estimated taxes to avoid surprises come tax time. Failing to accurately estimate and pay these taxes can result in penalties and interest. To prevent this, regularly review your financial performance and adjust estimated tax payments accordingly.
Consult with your CPA more than just during tax season – to learn which deductions and credits you can utilize and which tax-saving strategies will work best for your individual situation.
By implementing tax considerations and strategies that are appropriate for your small business and keeping up with regular business reviews with your CPA, you can stay on track to achieve more favorable tax outcomes in 2024 and beyond.