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John Harman, CPA PLLC

Huge Tax Savings - Restructuring

Contact Us (469) 742-0283

Want to lower your Business tax from 37% to 21% AND PUT THE SAVINGS IN YOUR POCKET?

Yes, it is possible with the new Tax Law.

New Tax Cuts and Jobs Act got you confused? Section 199A? Flow Through Entities, etc.?

What does all this mean for your particular Tax Situation?

We have been studying the Law from the time the first details started coming out and are well positioned to help you make maximum use of the Tax Savings opportunities it affords. 

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However, the new Tax Law is a 1071 page document that contains changes that impact both Individuals and Businesses. While there are many opportunities to save taxes, knowing how to take maximum advantage of the new rules can be quite complex and confusing. Being structured in most Tax Efficient manner is critical. That is where we come in. Here are some scenarios to help you get a sense of the complexity:

Situation 1:

A Small Business or at home business making $10,000 Net Income or more a year. The business is not an LLC and files a Schedule C with their 1040 as a Sole Proprietor. 

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Solution:  At $10,000 and above income they should consider being an LLC. The cost to set one up could be lower than the tax savings.  Additionally, the new law will allow them to save 20% on the pass-thru. More importantly, they can save up $1,430 and more in Self Employment tax. Let us show you how.

Situation 2:

Small business owner, income more than $38,700 (single, $77,000 joint), but not more than $157,500 (single, $315,000 joint) total income. And entity is a flow-thru. (S-corporation or partnership)

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Solution:  Depending on expectations on future growth, asset allocation, and other factors, the taxpayer could or could not benefit with a new entity structure. There is an opportunity to iterate through different scenarios to determine the most tax efficient structure. The Tax Payers definitely need a review of their 2018 tax plan.  We are here when you are ready to explore options.

Situation 3: 

Business owner making more than $157,500 (single) or $315,000 (joint) and either Schedule C or flow-thru entity.

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Solution:  Opportunities exist to restructure your business that create significant tax savings.  Tax saving from moving from single LLC to multiple entities for a business with $450,000 of income is around $30,000 before additional expenses. With $700,000 in income, the additional tax savings by restructuring is around $70,000.  We have developed strategies to maximize the savings from these opportunities.

To learn more about how they can benefit you, please contact John Harman CPA PLLC at 469-742-0283