Owners incur unnecessary taxes because they fail to plan an effective means to withdraw profits in a tax-effective manner. Some of the methods of compensation available to a business owner include the following:
Each of these methods may be subject to Federal income taxes, Federal payroll taxes, various State taxes, the Net Investment Income Tax, capital gains taxes, and potentially other taxes. We have extensive experience in working with business owners in designing long-term plans for withdrawing business profits with the least amount of taxes feasible.
While most executive compensation methodologies are well-known, what sets us apart from other tax planning firms and tax preparation firms is its comprehensive focus and understanding that the optimal method of withdrawing profits from a business or compensating its executives is dependent on the company’s and its executive’s specific circumstances. With years of experience and numerous professionals, we are able to analyze factors such as the business structure, jurisdiction, line of business, fringe benefits, retirement plans, employee demographics and the executive’s long-term business and family goals in designing a customized plan to minimize taxes.