Since most businesses are pass-through entities, combining business and individual tax planning is essential. If your CPA doesn’t look at your entire financial picture, you’ll likely miss out on tax-saving opportunities. Early tax planning provides for far more tax options.
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The approach Concannon Miller takes to taxes is generally a holistic approach. We find that a holistic approach really provides a better benefit than just looking at the business itself, or the individual owners themselves, because you really have to integrate the planning.
Most of the tax savings is generally at the business level because that's where you can find savings. Such as if it's a manufacturing company, it could be the R&D credit, or it could be international tax savings if they export their products.
And then on the individual level, you have to make sure that all that planning that you did at the corporate level is taken into account on the individual returns because they could have other activities, investments or other businesses that they're part of that all rolls up into their individual returns.
Today, most of the businesses are pass-through entities, meaning a partnership or an S Corp., and all that income ends up on the owner's return. So if you don't really look at it as an entire planning opportunity and wrap it all together, you could be missing an opportunity to save them tax dollars and also an opportunity for business planning and help them achieve their goals and objectives.
One of the things we like to talk to our clients about – or potential clients or future clients – is what are they doing? What are their goals and objectives? What are they looking to do over the next year, two years, five years?
And then we look to take advantage of what might be available in the tax laws, whether it's credits, working with the states to get incentives if they're building a new plant, they're moving their facility, they're increasing their employment.
There's a lot of different credits and grants available. A lot of times there's opportunities there just that don't get uncovered unless you have those conversations.