Tax Reduction Strategies for Business Owners and Investors

IBI provides tax strategy services for small business owners, investors, and other high net-worth individuals. IBI provides a variety of services including consulting, income tax returns, and quarterly tax planning.

tax strategizing and planning

What Is A Tax Strategy?

A tax strategy is a customized long term plan of action to reduce taxes for lasting financial and business success. A tax strategy helps you optimize your business structure, income and personal spending to reduce your taxes based on the most current tax law.

 
In order to create a tax strategy, you will need to develop an entity map that outlines the various types of entities you could use to structure your business and personal finances.

For example, an LLC may make sense for certain types of businesses, while a C-Corp is best for other types of businesses. As you plan your tax strategy, you should also consider deductions and credits available to you.

Depending on your situation, you may be able to deduct expenses for travel, home office, education, and more. An entity map can help you understand the relationship between the entities involved in your taxes, such as corporations, partnerships, and trusts.

At IBI, We ARE Tax Strategists

We help you with every step of creating your tax strategy!

We ensure everything is as it should be!

Creating a tax strategy is essential!

We at IBI understand that this is highly detailed work with lasting effects and a certain time commitment. We are on board to help you with every step of creating your tax strategy, even if only in an advisory capacity. We have detailed knowledge and experience with creating an entity map, identifying deductions, shifting income, and maximizing tax credits.

The entire process of tax strategizing and planning is nuanced and detailed, and the law must be carefully adhered to in order to ensure that everything is as it should be with the tax authorities. Even maximizing your tax credits by taking advantage of programs like the Earned Income Tax Credit or taking advantage of credits for investing in renewable energy sources must be done correctly.

By maximizing these credits, you can reduce your overall tax burden even further, but done incorrectly, and you are opening up for an audit, which can be time-consuming and costly.

If you have run into an issue with your tax strategy, are faced with an audit or must work with the governing tax authority for your business or investments, we are here to help!

Overall, creating a tax strategy is essential for reducing your taxes and ensuring long-term financial success. By understanding how to create an entity map, identify deductions, shift income, and maximize tax credits, you can ensure that you’re getting the most out of your taxes each year, protecting and growing your wealth and planning for your wealth going forward.

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IBI provides tax strategy services for small business owners, investors, and other high net-worth individuals.

Tax Reform

Tax reform can have a significant impact on your tax strategy. There are regularly changes to the tax code, so it’s important to stay up to date with new laws and regulations. You should also consider how the new law affects your business and personal income. Taking advantage of new opportunities or mitigating the negative impacts of reforms can help you save money on taxes, and IBI is always aware of the current laws and how they will affect our clients.

Implementation

Once we have created your tax strategy, it’s important to implement it as soon as possible. This means making changes to your business structure, reviewing and changing existing deductions, or utilizing new credits or deductions. With proper implementation of your strategy, you can reduce your taxes and optimize your financial situation for decades to come.

Sheltering

An important part of many tax planning strategies is sheltering income. Sheltering income means using strategies that reduce how much income is subject to taxation based on the current tax law. This includes using strategies such as tax-advantaged investments, utilizing deductions and credits, and setting up the right entity structure.

Tax Advantage Entity Structures

An important part of your tax strategy will be setting up the right type of business entity for your business or organization. We’re well versed in this! The structure of the entity can impact the taxation of your income, deductions, and other aspects of your financial and business operations.

A tax strategy should be tailored to your specific needs and goals and should be revisited regularly to make sure it remains optimized for your current situation. We at IBI understand this intimately and have strategized and implemented with loyal clients for decades. We know that having a well-thought-out tax strategy can help save you money and provide you with more financial options in the future. We’re here to help you reach your goals using the tried and true legal tax reduction strategies of high earners. Contact us today for your initial consultation.

Tax Strategy and Planning FAQs

We have the experts, know-how and connections to help you succeed and most of all we want you to succeed! We have the means to help you, and we understand that you likely have questions. Check out our FAQs on how we can help you and let’s get started. 

Tax-advantaged investments are products such as retirement accounts, 529 plans, and health savings accounts that help to lower your current taxes and/or provide favorable tax treatment of earnings. The IBI team has experience with all of these options, and we’re happy to discuss which options will work best for your tax strategy.

Tax credits directly reduce the amount of taxes you owe. Common credits include the Earned Income Credit, Child Tax Credit, American Opportunity Credit, and others.

Risk management is an important component of a successful tax strategy. Risk management strategies include identifying potential risks to your business or organization, analyzing the implications of these risks, and implementing strategies for mitigating these risks.

Deductions are expenses that can be used to reduce your tax liability. These deductions might include things like buying new equipment or paying for employee benefits. By identifying deductions, you can ensure that your taxes are reduced as much as possible.

Shifting income is a key part of any tax strategy. It involves transferring income from higher tax-rate entities to lower tax-rate entities to reduce your overall tax burden. This involves analyzing different business structures and making sure that you’re taking advantage of all available tax savings opportunities.

Get in touch with our experts!

IBI is here to help you with your complex tax issues. We have offices in California, Nevada, and Mexico to serve you better.