43460 Ridge Park Dr, Suite 200
Temecula, CA 92590-5518

What We Hear From
Small Business Owners

"If it's not my genius, then it's not my job. I have no intention of keeping up with tax laws and spending hours researching tax advantages for my business. Therefore I cannot be good or better than someone that specializes in this area."

"Time is my most valuable resource. Spending time doing taxes and keeping books current is not the best use of my time. I need to focus on better serving my existing customers and educating prospects on my products and services."

"I regard my CPA as a member of my team. She advises us on the best tax savings strategies so that I can make good business decisions using great information. Alerts us on new tax laws that impact us."


Small Business Owner, Did You Choose the Right Tax Entity for Your Business?

Being a business owner comes with a number of substantial benefits: being your own boss, pursuing your passions, controlling the growth of the company. One benefit that's often overlooked, though, is the ability to use a business as a completely legal tax shelter. By taking advantage of tax strategies designed to protect business owners, you can keep more of your money in your pocket or use it for investments rather than lose it every year to the IRS.

Many factors go into designing an optimal tax strategy, but the important first step is deciding which legal entity to establish your business as. Your choice of a legal entity affects multiple aspects of your company's future, including your personal liability, tax concerns and profitability. Businesses may not be people, but they do exist as unique and separate entities in the eyes of the government. Businesses are a collective enterprise that must conform to certain rules and regulations that are different than those experienced by individuals. This is why the government requires businesses to be registered and designations chosen.

There are two primary reasons why your choice of business entity matters.

  • First, your personal liability is affected by which business designation you choose. For example, if your business goes bankrupt, you may or may not be protected from having to pay off its debts out of your own pocket; your choice of legal entity will determine this.
  • Second, the way tax laws are applied to the business will vary between each legal entity designation. This means that establishing your business as one entity over another could save you a substantial amount in taxes.

In general, there are three basic types of business structures: sole proprietorships, partnerships and corporations. The primary difference between each entity designation is the way the business itself is structured and taxed.

It is important to know the benefits and drawbacks of each business entity type. Attorneys will provide you with information surrounding liability and other legal ramifications. To get the best possible feedback in designing an optimal tax strategy for your business talk to a Certified Tax Coach.

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