Why is Tax Planning and Advanced Tax Reduction So Important to Your business?
Business start-ups have a failure rate that ranges from 70% to 95%. This is staggering. And this is no reason to not try to start a business, but most businesses either play it safe and not capture markets, or they realize the large burden that tax plays in their success. Here are the risk factors: 1) Tax burden is a surprise A business usually doesn’t realize how large a tax burden can be in the first year. In fact, many businesses' experience tax benefits during a start-up scenario. But as the owner’s see the tax liability go from beneficial to increasing payments it is hopefully realized that mistakes commonly creep up on the DIY or even a paid traditional tax preparer/CPA. The tax burden is the second largest single expense that a business owner faces. Businesses are coupled with their own tax burdens for personal income tax, capital gains, employment taxes, tangible taxes, inventory, excise, property, sales and use, licenses, and don’t forget hidden state taxes. These t