Bidens Tax Plan: What You Need to Know About Tax Planning

If you’re anything like me, you like keeping your money but you don’t enjoy sitting behind a desk figuring out your taxes (or paying them…but I digress). 

In this episode, I chat with Arron Bennett. He’s the owner of Bennett Financials, a financial agency that “specializes in helping entrepreneurs keep more of their hard-earned cash.” 

We discuss tax planning, what it can do for your business, and the unique situation where tax planning won’t work for you.  A few questions we answer here is 

  1. What is tax planning?
  2. When is the best time to tax plan?
  3. What is Biden’s tax plan?

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SHOW NOTES

02:21
What is tax planning?
03:09
Deferments reduce taxes in the current year in favor of paying those taxes in future periods.
05:18
Are the taxes on a personal level or on a business level?
05:52
How does the new administration affect tax planning in 2021?
08:46
Do the tax laws traditionally change with each administration change?
10:29
What is the optimal time to do tax planning?
15:09
For established businesses, what is the best thing to do now?
18:39
Should the business be structured as an LLC, an S Corp, or a C Corp?
22:19
Is there an ideal revenue for switching from LLC to S Corp?
23:20
Tax planning won’t work without a certain amount of cash in the business
25:16
What is an accountable plan?
26:11
Augusta strategy
31:45
Good strategies for smaller businesses to save on taxes
35:32
Why Arron doesn’t recommend going from S Corp to C Corp
36:32
You should do tax planning every year.
37:53
Does intellectual property factor into the business structure and tax planning?
39:29
What if those structures are not earning income and they’re trying to protect the asset itself?

KEY QUOTES

“If we’re taking cash from the business and you can’t pay your people, you’re ultimately putting yourself in a really precarious situation”

“A lot of times we’re paying for tax planning that creates more expenses.”

“Structure the business correctly and understand the tax implications of that rather than just being like, “My CPA said we’re going to go for this structure.”

Resources Mentioned In This Episode

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