About Tax Planning:
U.S. Tax System:
Tax prep in the U.S. focuses on the preparation, analysis and presentation of tax returns and tax payments. The U.S tax system requires specialized accounting principles for tax purposes which can be different from the generally accepted accounting principles for financial reporting.
The four forms of business:
U.S. tax law covers four basic forms of business ownership. Sole proprietorship, partnership, corporation, and limited liability company (LLC). Corporate and personal income are taxed at different rates, both varying according to income levels and including varying marginal rates (taxed on each additional dollar of income) and average rates (set as a percentage of overall income).
What is Tax Planning?
Tax planning for businesses and individuals involves the timing of income and expenses in order to avoid taxes in the current year and plan for future years. A competent tax professional can use specialized software and other tools to project tax liabilities over multiple years.
Why is Tax Planning Important?
Tax planning is important for your overall financial plan. Planning throughout the year can make the tax process run smoother, help you achieve your financial goals, and even assist you in reducing what you have to pay.
Tax prep in the U.S. focuses on the preparation, analysis and presentation of tax returns and tax payments. The U.S tax system requires specialized accounting principles for tax purposes which can be different from the generally accepted accounting principles for financial reporting.
The four forms of business:
U.S. tax law covers four basic forms of business ownership. Sole proprietorship, partnership, corporation, and limited liability company (LLC). Corporate and personal income are taxed at different rates, both varying according to income levels and including varying marginal rates (taxed on each additional dollar of income) and average rates (set as a percentage of overall income).
What is Tax Planning?
Tax planning for businesses and individuals involves the timing of income and expenses in order to avoid taxes in the current year and plan for future years. A competent tax professional can use specialized software and other tools to project tax liabilities over multiple years.
Why is Tax Planning Important?
Tax planning is important for your overall financial plan. Planning throughout the year can make the tax process run smoother, help you achieve your financial goals, and even assist you in reducing what you have to pay.
3 Considerations That May Apply To You:1. Tax planning should not be done in isolation and instead should be driven by your financial goals and implemented with your total financial plan.
2. Developing and implementing appropriate strategies lessens current and future tax liabilities. Accurately projecting your income taxes can help you determine the cash flow available to you in the coming year. 3. Tax laws are often complex and frequently change. As a consequence, you should consult your tax advisor before making investment and tax decisions. |
How we handle things here at Pathways Consulting:
We prefer to take a proactive vs. reactive approach to tax services. By keeping current on tax laws and legislation, we are able to identify key tax planning opportunities that minimize both your current and future tax liabilities. We provide our individual and business clients with the taxation expertise and knowledge that they need throughout the year.