Small Business Tax Savings Podcast How Can I Utilize a Board Meeting for Tax Savings?
Being an entrepreneur can be challenging and having a board of advisors is a great way to get guidance and outside perspective that can positively impact your business. In this episode, we tell you all about its benefits: from tax deductions to personal and professional growth.
[00:58] Tax Advantages of Board Meetings
- A board of advisors or advisory board is a group of people appointed to provide advice and counsel for a business
- The members of your advisory board could be family members, friends, colleagues, or anyone you want to bring in
- Holding regular board meetings can be a tax advantage, as all travel and expenses related to the meetings are deductible except for entertainment expenses
- One way to utilize this advantage is to have board meetings at your home, which is known as the Augusta Rule
[04:41] What Documentation Should I Be Recording or Keeping?
- The meetings must be ordinary and necessary
- Have a record or minutes of the meeting on file to outline what was accomplished and discussed
- Include who attended, location, time spent, agenda items, outcomes, etc.
- The more documentation, the better
- Keep receipts and store them digitally
[05:53] The Power of Having a Board of Advisors
- With a board of advisors, you get insights from others
- Depending on your entity structure and location, you may actually be required to hold the annual meeting
- You are held accountable and become motivated to get things done
- Board meetings can also help with planning and alignment because you have the opportunity to think about the future of the business
- It provides stress relief
[08:29] Final Thoughts
- Consult your attorney to know which type of board would be the best for you and how to set it up
Key Quotes
“What better way to not only get a tax deduction but you’re getting your family involved in your business, and they could potentially be better prepared to pass it on in the future to future generations.” - Mike Jesowshek
“If you're having these monthly meetings, it helps keep you accountable. Your board wants to see what was accomplished. They want to see the progress, and this can help move you along.” - Mike Jesowshek
“You can have anybody on your board that you want, as long as you think they're going to be able to provide some great guidance to you and really be a stamping point to help your business out.” - Mike Jesowshek
Resources Mentioned
Blog Posts:
- https://www.taxsavingspodcast.com/blog/how-can-i-utilize-a-board-meeting-for-tax-savings
- https://www.taxsavingspodcast.com/blog/what-is-the-14-day-home-rental-strategy-aka-the-augusta-rule
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
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