What Is Tax Planning?
Tax planning involves the review of your financial situation or projected financial situation with an eye towards minimizing your tax burden. Dom Law can help you choose the entity type that best suits your goals, while allowing for tax savings, and still protecting your personal property.
Proper Tax Planning occurs at every stage of the small business cycle. For example, whether to form a new entity as a pass-through entity, elect S-Corp status, or a C-Corp. Or, when selling a business, the steps that should be taken to mitigate capital gains felt by the small business owner as a result of that sale. Tax Planning, much like taxes themselves, permeate all aspects of the small business; this requires accounting oversight by the small business owner’s CPA, which benefits greatly from the legal oversight provided by the skilled Legal Tax Team at Dom Law.
Partner, Alberto Rodriguez, LL.M., leads the skilled Legal Tax Team at Dom Law, possessing a knowledge of tax law uncharacteristic of most business lawyers. This includes a Masters of Laws, or “LL.M.”, from the University of Miami School of Law’s tax law program which focuses on “building a better tax lawyer who develops the ‘tax sense’ necessary to resolve tax problems with confidence.” Alberto has worked with some of the largest non-profit organizations in the United States along with multi-million-dollar companies in the Tampa Bay area and can help you and your business.
Death and Taxes
In a letter to Jean-Baptiste Le Roy shortly after the United States was founded, Benjamin Franklin wrote “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” Benjamin Franklin’s famous idiom foretold a fact that all small business owners face: taxes.
Common examples of taxes most small business owners should be familiar with include the following:
- Capital Gains Tax: taxes paid on capital gains, occurring whenever the small business owner sells an asset for more money than they paid for it.
- Income Tax: taxes paid on income generated by the small business owner and their businesses.
- Sales Tax: taxes paid on the sale of goods and services levied at the time of sale.
- Employment Taxes: taxes paid by small business owners with employees, which can include social security and Medicare taxes, federal unemployment (“FUTA”) taxes, and self-employment taxes.
Tax Planning for Small Business Owners
Tax Planning for our small business clients typically includes a combination of the following:
- Working with the small business owner to ensure they understand the various taxes they could be subject to, and how best to plan for and mitigate those taxes.
- Review of the current tax structure in order to determine whether tax savings are being maximized.
- Determination of any potential interplay between the business and the estate plan of the individual owner.
- Asset Protection including entity and trust structuring
- Proper Implementation of an Estate Plan through Estate Planning
Tax Planning for Individuals
Tax Planning for individuals typically includes many of those items discussed above for small business owners, such as Estate Planning and Asset Protection. It can also include the following:
- Successfully navigating the Employee Retirement Income Security Act (ERISA) for defined benefit plans (such as 401(k) and 403(b) plans) and defined contribution plans (such as Simplified Employee Pension Plans, or SEPS, and individual retirement accounts, or IRAs).
- Negotiation and Resolution of Outstanding Tax Debts and Liabilities with the Internal Revenue Service.
- Determining whether entity conversion may be beneficial to the business or its owners.
At Dom Law our specialized and unique knowledge of Tax Law, positions us to legally and ethically help individuals protect themselves and their property, and plan appropriately for those two proverbial parts that cannot be avoided: death and taxes. If you have questions about Tax Law or are in need of Tax Planning, contact the Legal Tax Team at Dom Law for a free consultation.
About Alberto Rodriguez, LL.M, Esquire
Alberto Rodriguez, Esq., LL.M., has experience in all phases of Estate Planning, from drafting simple wills to complex trusts and tax structures. Alberto's experience in Estate Planning includes a specialized background in taxation which he obtained from the University of Miami's Masters of Laws program and throughout years of practice.
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