Tax Planning
Year-round planning that looks ahead at structure, timing, compensation, and succession instead of reacting after the year closes.
Overview
Most tax outcomes are set by decisions made during the year, not by how the return is prepared afterward. Tax planning means reviewing those decisions while they can still be shaped. We work with business owners and individuals on an ongoing basis to look at how the business is structured, how and when income is recognized, how owners are paid, and how retirement savings and long-term transitions fit together. The aim is fewer surprises and decisions made with their tax effect in view.
Planning is most useful when it is recurring. We revisit plans as the business grows, as tax law changes, and as personal goals shift, and we use projections to estimate the effect of each option before you commit to it. Planning addresses the recurring, forward-looking decisions owners face every year. One-off technical questions and complex restructurings are handled through our tax advisory work.
How We Help With Tax Planning
Entity Structure Review
Evaluating whether your current entity type and ownership structure still fit the business, considering pass-through treatment, self-employment tax, state taxes, and plans for growth or sale.
Income and Deduction Timing
Planning when to recognize income and incur expenses across tax years, including depreciation elections and the timing of large purchases, to help manage taxable income.
Owner Compensation Planning
Reviewing how owners are paid through salary, distributions, and guaranteed payments, including reasonable compensation considerations for S corporation shareholders and the payroll tax and retirement plan effects of each approach.
Retirement Plan Strategy
Evaluating retirement plan options for owners and employees, such as 401(k), profit-sharing, and cash balance plans, and how contributions fit into the overall tax plan.
Succession and Exit Planning
Planning for ownership transitions to family, key employees, or outside buyers, coordinating tax considerations with estate planning, gifting, and the timing of a future sale.
Ongoing Planning Meetings
Regular check-ins during the year to review results, update projections, and adjust the plan as business performance, tax law, or personal circumstances change over time.
Challenges We Help You Address
- ✓Tax conversations that only happen at return time, when options are limited
- ✓An entity structure chosen years ago that no longer fits the business
- ✓Uncertainty about how to split owner pay between salary and distributions
- ✓Retirement savings that are not coordinated with the business’s tax position
- ✓No clear tax plan for an eventual sale or family transition
Frequently Asked Questions
What is proactive tax planning?
Proactive tax planning means reviewing tax-relevant decisions before they are final rather than reporting them after the year ends. It typically includes evaluating entity structure, timing of income and deductions, owner compensation, retirement contributions, and long-term transition plans. Because many choices must be made by year end or earlier, planning during the year leaves more options available than waiting until the return is prepared.
How often should a business owner do tax planning?
At a minimum, most business owners benefit from a planning review before the fourth quarter, when there is still time to act on year-end decisions. Owners with growing businesses, variable income, or upcoming transitions often benefit from more frequent check-ins. Planning should also be revisited after significant tax law changes, a major transaction, or a change in ownership or personal circumstances.
What is reasonable compensation for an S corporation owner?
S corporation shareholders who work in the business are generally expected to receive a reasonable salary for their services before taking distributions. The IRS looks at factors such as duties, time spent, experience, and what comparable businesses pay for similar services. Setting compensation too low can draw scrutiny. Reviewing it periodically helps keep the salary and distribution mix supportable.
What is the difference between tax planning and tax advisory?
Tax planning is recurring and forward-looking: an ongoing review of structure, timing, compensation, retirement, and succession that repeats each year. Tax advisory addresses specific, often one-time issues that need deeper technical analysis, such as a restructuring, a change in accounting method, a transaction structure, or a dispute with the IRS. Many clients use both, with planning surfacing issues that become advisory projects.
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