Money Mastery LLC Offers Professional Tax Planning Services

Close up of a person’s hand holding a tablet. Above the tablet there are several various digital images surrounding the word Tax spelled out in capital letters.

To keep your business afloat, it’s important to budget and avoid spending more than you earn. Planning your business taxes can keep you from spending more in taxes than necessary. While Money Mastery LLC offers services to assist with accidental tax fraud, it’s easier to prevent it with an efficient, professional tax plan. You may be asking yourself, what are tax planning services and how will they help my business? 

Benefits of Professional Tax Planning Services

Tax planning services are meant to minimize the tax liability of your business. This takes careful planning with a professional or a team of professionals (such as Money Mastery LLC) at the beginning of the tax year, not right before the due date. Our team stays up to date with local and federal tax laws in order to legally minimize the amount of taxes your business owes. This is not the same as tax preparation, which is documenting your tax return to submit to the IRS.

By working with Money Mastery LLC, you will be able to prepare for business taxes and likely qualify for a variety of tax credits and deductions, keeping more cash in your business. Since tax laws change frequently, it is important to work with a tax professional throughout each year.

Let’s quickly review the most common business taxes and credits to gain insight into what a tax planning service can do for you!

The Four Types of Business Taxes

There are four main types of taxes collected from businesses each year. Those are:

  • Income Tax: In addition to an individual’s income tax, both the federal government and most state governments collect income taxes from corporations each year (the Carolinas tax small and medium businesses). The federal rate is currently 21% while the state income tax ranges from state to state.   

  • Self-Employment Tax: The federal government collects Social Security and Medicare taxes even if you work for yourself.

  • Taxes for Employers: For every employee you hire you are expected to deduct taxes from your employee’s wages and pay payroll taxes for each employee on staff. 

  • Excise Taxes: Excise taxes are imposed on the sale of goods and services. Think airline tickets, gas, or a 24/7 tanning membership. This tax is usually charged to the buyer of a service or good but the business is required to collect and remit the tax. Sales tax is a common example. There can be penalties imposed on businesses that fail to comply.

Common Tax Credits for Businesses

The government does give back to small and medium businesses, if you know how to claim the tax credit. With over 15 claimable credits, tax planning services can save your business money! Some examples of tax credits include:

  • Small business health care tax credit: The smaller your business, the more credit you can receive from the government. However, the qualifications for this tax credit are strict. Your business must be enrolled in the Small Business Health Options Program (SHOP) plan, have fewer than 25 full-time employees, these employees must be offered SHOP coverage, your employees must not make more than $56K a year, and you must pay 50% of their premium costs.

  • Work opportunity tax credit: If you hire people who face significant employment barriers, your business can claim this tax credit for each employee who qualifies. The government considers veterans, former prisoners, vocational rehabilitation referrals, and those who have been unemployed for a significant period among those who face barriers to employment. 

  • Investment tax credit: To encourage businesses to invest in green technology and energy conservation, businesses who invest in a qualifying stock or project are allowed to deduct a portion of investment costs from their taxes.

There are so many ways to legally save money on your business taxes. Don’t wait until tax season when it’s too late. We offer monthly and quarterly meeting options. Call Money Mastery LLC and create your tax plan today!

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