3 Secrets for Business Owners to Lower Taxes*
Hey business owners, are you feeling the pinch from taxes? You’re not alone, but I’ve got three secrets that could ease your burden.
1. Benefit Plans: Your Future, Your Savings
It might not seem like it, but the tax code is actually designed with business owners in mind. One of the most effective strategies you can implement is setting up a benefit plan within your business. This allows you to take deductions while simultaneously putting money aside for the future.
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Here’s the kicker: in many cases, you can lend yourself money from these plans if things get tight. This dual benefit of saving for the future and having a financial safety net can be a game-changer for your business.
2. Specialized Insurance Plans: Protect and Prosper
Another powerful tool at your disposal is specialized insurance plans. Policies like key man life insurance or a buy-sell agreement not only protect your business but also offer tax-deductible premium payments. These policies build cash value over time, which you can then lend back to your business if needed.
Moreover, the benefits of these policies extend to your heirs, ensuring that your legacy is protected. There are even more advanced insurance policies that allow you to accumulate significant amounts of money in a tax-advantaged way, but we’d have to talk through those in person.
3. Specialized Investments: Tax Benefits Today, Growth Tomorrow
The last strategy, often overlooked, involves specialized investments. These investments provide immediate tax benefits while also offering long-term growth potential. Although, these investments are typically reserved for folks with income of greater than $300,000 per year. These investments can be a crucial part of your tax strategy, helping you save money now and build wealth for the future.
Conclusion
If you’re a business owner frustrated with your taxes, it’s time to explore some more advanced strategies. Setting up benefit plans, leveraging specialized insurance, and making smart investments can all contribute to a more favorable tax situation. And, of course, your tax professional can and should be part of that discussion.
Remember, your job is to dream big and drive your business forward. Our job is to handle the details and help you navigate the complexities of the tax code. Give us a call, and let’s unlock the full potential of your business together.
* Directional Advisors does not offer tax nor legal advice. Consult a qualified professional before embarking on any tax-driven strategy.
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