Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $9.99/month after trial. Cancel anytime.

    The Art of Tax Reduction
    The Art of Tax Reduction
    The Art of Tax Reduction
    Ebook32 pages15 minutes

    The Art of Tax Reduction

    By Xilis and MoneyMakingMavericks

    ()

    Read preview

    About this ebook

    This ebook is your guide to navigating the tax landscape as an LLC owner, revealing strategies to maximize your savings and minimize your tax burden.

    Discover how to leverage the unique advantages of your LLC structure:

    Unlock tax benefits: Explore a variety of strategies, from smart deductions to strategic asset management, to reduce your tax liability significantly.

    Maximize your retirement: Learn about tax-advantaged retirement plans specifically designed for LLC owners and build a secure financial future.

    Master business expense deductions: Understand how to correctly identify and claim a wide range of deductible expenses, from everyday business costs to specialized investments.

    Harness the power of an S Corporation: Learn how transitioning to an S Corporation can impact your tax obligations and whether it's the right move for your business.

    This ebook will equip you with the knowledge and tools to:

    Make informed decisions: Understand the tax implications of your choices and make strategic decisions to optimize your financial well-being.

    Take control of your tax future: Become proactive in managing your taxes and ensure you are taking advantage of every opportunity to save.

    Gain confidence in your financial decisions: Armed with this knowledge, you can confidently navigate the complexities of LLC taxation and achieve your financial goals.

    Don't miss out on valuable tax savings! Download this ebook today and unlock the potential of your LLC to achieve financial freedom.

    LanguageEnglish
    PublisherMoneyMakingMavericks
    Release dateJun 7, 2024
    ISBN9798227430779
    The Art of Tax Reduction
    Author

    Xilis

    A humble young man from the island of trinidad and tobago 

    Read more from Xilis

    Related to The Art of Tax Reduction

    Related ebooks

    Business For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      The Start-Up Dilemma: How Entrepreneurs Can Thrive in Today's Economic Climate

      Dec 17, 2019

      With economic uncertainty continuing to rise, the American entrepreneur may feel discouraged when it comes to starting, owning or running a small business. There are a multitude of factors that play into these feelings of doubt, such as the probabili

      4 min read

    • Article

      6 Smart Ways Taxpayers Can Save Money on Their Tax Bills

      Dec 7, 2018

      Tax laws have traditionally been complicated for taxpayers to understand. The recently passed Tax Cuts and Jobs Act (TCJA) has added another layer of confusion -- at least for the immediate future. As tax time approaches, many taxpayers are wonderin

      4 min read

    • Article

      Hunt Muddies The Waters

      Nov 4, 2022

      Hunt Muddies The Waters
      2 min read

    • Article

      There's a Way to Serve Your Business and Save on Taxes If You Think Big

      Dec 14, 2018

      It's the year-end tax-savings rush, which means there's a lot of advice floating around about how businesses can best take advantage of the Tax Cuts and Jobs Act signed into law last December. It famously cut the corporate tax rate to a mere 21%, alo

      3 min read

    • Article

      10 Things Anyone Considering a QCD Should Know

      May 8, 2019

      Maybe you didn't pay much attention to all the ramifications of the tax reforms that took effect in 2018. Or maybe you thought you'd wait and see how things actually played out on your tax return before you made any strategic changes. By now, though

      2 min read

    • Article

      Another Famous Five

      May 30, 2024

      Tax time can be a challenge for small business owners who, unlike their employees, may be less likely to receive a refund. But five strategies can help to shift the tax dial in your favour. Good news! The instant asset write-off for small businesses

      2 min read

    • Article

      Should You Incorporate?

      Oct 18, 2024

      Should You Incorporate?
      2 min read

    • Article

      5 Often Overlooked Tax Strategies as You Approach Retirement

      Jan 28, 2019

      When you approach retirement, your financial situation changes, and that presents unique opportunities. One of those opportunities is an increased ability to better control your tax bracket. When steady income from employment stops, it's replaced

      4 min read

    • Article

      The Complexity Of Executive Remuneration

      Jun 24, 2019

      A TOPIC that draws mixed opinions, determining executive remuneration, can be a complex process. Typically, the responsibility of a board of directors, it is considered a particularly important duty of their corporate governance. Awarding executive p

      2 min read

    • Article

      5 Ways to Increase Your After-Tax Spendable Income - and Legacy

      May 16, 2019

      Over dinner with friends a few nights back, they expressed concern about how the recent tax law changes increased their federal income taxes. New rules limit the amount of property and state income taxes that can be deducted -- and they live in a hig

      5 min read

    • Article

      Put More Money in Your Pocket in 2018 with a Basic Employee Benefit Checkup

      Jan 30, 2018

      It's a new year, but you aren't making any financial resolutions. It's already a habit with you. You're smart, savvy and you pay attention to all the personal finance advice. You're reading Kiplinger's. You're clearly more engaged than the average be

      3 min read

    • Article

      Retirees, No Tax Deduction for Hobby Losses

      Mar 6, 2020

      Retirement may finally give you the free time you need to pursue your passions. But whether your pursuit is in the form of a business or a hobby makes a big difference come tax time. If you launch or otherwise engage in a venture that combines elemen

      2 min read

    • Article

      Is Your Company Ready for the New Partnership Tax Audit Rules?

      Jun 26, 2018

      Partnerships are one of the most commonly used business and estate planning tools, and they come in a variety of wrappers or names, such as traditional partnerships, multimember LLCs, joint ventures, limited partnerships and limited liability partner

      4 min read

    • Article

      Growing Your Business

      Mar 25, 2022

      Growing Your Business
      2 min read

    • Article

      Leveraging the Tax Code to Minimize Your Tax Liabilities

      Feb 24, 2022

      As we head toward March, one of most dreaded times of the year approaches: tax season. Right now is the time when you’re inundated with tax documents, including a W-2 from your employer, 1099s from your side gigs, 1099-MISC statements from your onlin

      4 min read

    • Article

      Tax-Savvy Charitable Giving With QCDs Can Benefit Both Giver and Receiver

      Sep 26, 2022

      Plenty of retirees like to give back to their communities through charitable donations, but questions often arise over the best way to do that. What approach is efficient, provides the tax benefits you’re after, and also is advantageous for the chari

      2 min read

    • Article

      Stretch Your Retirement Savings with Multi-Year Tax Planning

      Oct 2, 2019

      As people wind down their careers and begin picturing what retirement will look like, it's important that they consider a few big questions. Where will their income come from? How will taxes affect their cash flow? And how do they determine what asse

      4 min read

    • Article

      What Structure Should I Choose For My New Venture?

      Apr 1, 2020

      Congratulations if you’re one of the thousands joining the ranks this year of Australia’s 2.1 million-strong small business engine room.  Hopefully you’ve completed your research and there is a viable market for your widget or service, with the poten

      5 min read

    • Article

      Forming A Limited Company

      Feb 6, 2020

      Forming A Limited Company
      3 min read

    • Article

      Some Self-Employed Taxpayers Get a Big Break Under New Law

      Jul 6, 2018

      If you're self-employed or have a side gig, you could qualify for one of the most generous provisions in the tax overhaul enacted by Congress late last year. But if you don't already have an accountant or tax preparer, you might need one, because thi

      4 min read

    • Article

      Avoiding Insolvency

      Jul 20, 2022

      There are an increasing number of firms, large and small, that are facing liquidation, receivership or voluntary administration. Consequently, it is important to identify the warning signs of a struggling company. Many businesses in New Zealand are c

      4 min read

    • Article

      Should You Worry about Tax Increases? Maybe Not!

      Feb 12, 2022

      There's been no shortage of handwringing about the prospect of tax increases over the course of the past year. Worried about potential tax changes, some business owners pushed ahead with sales or other liquidity events, while investors raced to book

      2 min read

    • Article

      Should You Worry about Tax Increases? Maybe Not!

      Feb 15, 2022

      There's been no shortage of handwringing about the prospect of tax increases over the course of the past year. Worried about potential tax changes, some business owners pushed ahead with sales or other liquidity events, while investors raced to book

      2 min read

    • Article

      3 Strategies for Reducing Tax Risks in Retirement

      Mar 7, 2022

      Remember back to when you received your first paycheck. You were so excited. You knew how much you were earning per hour and how many hours you worked, and you couldn’t wait to go out and splurge on something you’ve been dying to get. You were handed

      5 min read

    Related categories

    Reviews for The Art of Tax Reduction

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      The Art of Tax Reduction - Xilis

      METHOD ONE

      Becoming an S Corporation: A Guide for LLC Owners

      This detailed step-by-step guide will help you understand the tax classification differences, assess your business needs, consult with a tax professional, and weigh the benefits and drawbacks of this transition.

      Step 1: Understand the Tax Classification Differences

      Tax Classification Differences

      LLC (Limited Liability Company)

      Tax Treatment: An LLC is a pass-through entity, meaning income and expenses are reported on the owner's personal tax return.

      Self-Employment Tax: Owners pay self-employment tax on the entire net income of the business.

      Flexibility: Offers flexibility in management and fewer compliance requirements.

      S Corporation

      Tax Treatment: An S Corporation is also a pass-through entity, but with key differences. Income, deductions, and credits pass through to shareholders, who report them on their personal tax returns.

      Self-Employment Tax: Only salaries are subject to self-employment tax, not distributions. This can significantly reduce the tax burden.

      Compliance: Requires adherence to more stringent compliance and administrative requirements, including payroll and corporate tax filings.

      Example of Tax Implications

      LLC:

      Income: $100,000

      Self-Employment Tax: 15.3% on $100,000 = $15,300

      S Corporation:

      Salary: $60,000 (subject to self-employment tax)

      Distributions: $40,000 (not subject to self-employment tax)

      Self-Employment Tax: 15.3% on $60,000 = $9,180

      Savings: $15,300 (LLC) - $9,180 (S Corp) = $6,120 saved

      Step 2: Evaluate Alignment

      Enjoying the preview?
      Page 1 of 1