Tax Planning: An Essential Guide For Small Business Owners

April 20, 2023

Business owners in Brookhaven, Georgia, should begin planning their taxes as early as possible. If you’re thinking, “Why? April is months and months away,” the short answer is, “For multiple reasons—and they all involve your money.”

At Ironclad Wealth Management, we respect the drive and ambition that it takes to be a successful entrepreneur. In fact, we empathize with you. So, this article is intended to show you the night-and-day difference that long-term tax planning can make for your business and your personal nest egg.

This article answers the following questions:

  • What is tax planning?
  • Can a good tax plan shrink how much you pay?
  • Why is sooner rather than later for planning taxes?
  • How can you save more money over longer periods of time?
  • Should you try to do your own small business taxes?

For Optimal Results, Start ASAP

There’s probably a difference between what you’re paying and what you should be paying if you’re not doing tax planning. Tax planning should be motivated by the same reasons you answer an alarm at the start of each workday: to make money for yourself and your loved ones.

Tax planning is done early to prevent as much of your hard-earned money as possible from going needlessly to the IRS. This is because the more of a long-term tax plan we create, the greater the potential amount of money we can save you. Put simply, there are more options if you plan before the end of the year than every March.

Think about it like your business - do you plan for the next 3 months or the next 3 years? It’s our job to find those small business deductions that match your long-term vision. As a result, we pride ourselves on how much we can potentially save you and your company.

Knowing the Rules

When you sit down to try and figure out how to save on taxes, the reality is that it can be confusing, overwhelming, and many of the sources of information can conflict with one another. This can lead to an idea that may sound too good to be true to sound like the magic solution, the silver bullet to all of your tax problems.

Unfortunately, the idea that sounds too good to be true often is.bWhen you’re creating a plan to save on taxes for your small business, the key to ask yourself is “Why” does this work? What is the incentive that the government is interested in that allows me to save this money?

Once you start from their end things get much clearer. That’s how we set up our plans. We don’t want to solve one issue only to have a storm-cloud appear on the horizon. That’s not effective tax, financial, or any other kind of planning.

Professional Insight Pays

The best way to maximize your deductions is by consistently working with a fiduciary financial advisor. Take the process described above, rinse and repeat annually. The longer you work with Ironclad Wealth Management, the better we can learn your day-to-day operations and tailor plans to the unique needs of your business.

As a result, we can begin—not just thoroughly analyzing your past year’s expenses but—strategizing your company’s financial future to maximize deductions to come. For instance, you may actually WANT to pay more in taxes this year…because it results in more in savings 3 years down the road!

Part of the entrepreneurial spirit can be a do-it-yourself attitude. We know this firsthand from personal experience. Regardless, please be very careful if you decide to attempt your own business taxes. A lot of small business owners face IRS audits every year, and they felt confident starting out, too.

The Sum Total

Ironclad Wealth Management specializes in tax planning small business owners can rely on. We have the expertise and experience to help you maximize deductions in the short term while planning more for the long run.

We incorporate our tax planning into a broader financial plan that includes investments and insurance for small business owners near Brookhaven, GA. As a matter of fact, we believe we can get you even more of your money’s worth by planning your business taxes as well as your personal ones. Approaching things comprehensively can mean additional advantages on both sides.

We have the strategies that your business needs—and we understand that for your company's sake, you may not be able to take a day off from work to tackle them. Especially if you know you are paying too much in taxes, contact us today.

MGO One Seven LLC ("MGO One Seven") is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with Ironclad Wealth Management represent the individual's role with Ironclad Wealth Management, and not their role with MGO One Seven. Services are provided under the name Ironclad Wealth Management, a DBA of MGO One Seven. Investment products are not FDIC insured, offer no bank guarantee, and may lose value. Please visit our website for important disclosures.

Please note, the information provided in this presentation is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Please refer to the disclosure and offering documents for further information concerning specific products or services.

Nothing provided in this presentation constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments. Investments in securities entail risk and are not suitable for all investors. This site is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.

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