Small Business Tax Savings Podcast

Send us a textHow do you create an effective elevator pitch for your business? In this episode of the Small Business Tax Savings Podcast, Mike welcomes Brandon White about their four-part series, “Back of the Napkin to Business Plan and 11 Sides”. Brandon is an entrepreneur with two exists, lots of strikeouts, an angel investor, a former venture capitalist, and worked in Marketing at America Online.He started his professional career in technology as a pioneer on the Internet in 1996 as the Founder/CEO of Worldwide Angler, Inc. Worldwide Angler was recognized as the #1 social networking and e-commerce site for sport fishermen on the Internet. He bought the company back from investors in 2001 and led it to a successful exit a decade later to a large public media company. Tune in now and hear Brandon’s advice on creating an effective elevator pitch and how to write your own back-of-the-napkin business plan![00:22] Back Of The Napkin To Business PlanMike is launching a four-part series with Brandon White on Back of the Napkin To Business PlanBrandon is an entrepreneur with two exits, a former venture capitalist, angel investor, and podcast host[01:12] Creating An Impactful Business PlanHe wrote his first business plan in 1995 which became the largest social networking and e-commerce site for fishermen on the internetA business plan can be broken down into people, market, funding, and productHis mentor advised him to get a product that solves a problem and sell it for more than it costsHaving a good elevator pitch that explains what the company does in an interesting way[08:40] A Step-by-Step Guide To Create A Business PlanA bad elevator pitch is too wordy and includes unnecessary detailsAn elevator pitch should be less than 15 secondsA business plan is needed and not just for first-time business ownersA business plan can be used as a guide for first-time business owners[19:08] Closing SegmentBrandon advises listeners to create an effective elevator pitch and how to write their own back-of-the-napkin business plan!Final WordsKey Quotes“Business isn't as complicated as people want to make it.” – Brandon WhiteConnect with Brandon through his:Website: https://brandoncwhite.com/LinkedIn: https://www.linkedin.com/in/brandonwhite/YouTube: https://www.youtube.com/channel/UCabV9Rcw4MohWvTGr3OTzFwInstagram: https://www.instagram.com/brandoncwhite/?hl=en--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textDo you want to know how you can save money on taxes through smart strategies and proper filing? In this episode of the Small Business Tax Savings Podcast, Mike answers listener questions every other month in a Q&A session. He tackles some of the most common questions from small business owners.Mike covers topics such as the Augusta Rule, “Why banks penalize small business owners?”, whether one should receive W2s when they are employed in the family business, and the best way to receive payments for his business.Tune in now as Mike explains how you can save money on taxes through smart strategies and proper filing![00:25] Listener Q&AsToday’s episode is, “Listener Q&A”Mike invites listeners to submit their questions for the next Q&A[01:10] Maximizing Tax Deductions For Small Business OwnersWhat is the “Augusta Rule”?Banks penalize small business owners who strategize well and take advantage of tax deductions/creditsThe government does not offer incentives to banks or loan providers to work with these scenariosTry to find a bank that is business-friendly and understands what you’re doing[09:25] Understanding The Tax Implications Of Multiple Business In One LLCWhen filing a personal return and paying taxes, use an owner’s draw in QuickBooksFor paying kids for work done in the business, issue them W2s for 2022 and 2023To protect LLC status, payments should go through the business bank accountWhen paying estimated taxes for a single-member LLC or S Corp, use a personal social security number[20:53] Closing SegmentMike explains how you can save money on taxes through smart strategies and proper filing!Final WordsKey Quotes“Remember, with any business deduction we take, the deduction has to be ordinary and necessary... So just make sure you have the documentation to support it and that everything makes sense. Remember, we need agreements in place, rental agreements, we need a fair rental value.” – Mike Jesowshek, CPA--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textWhat Is an S Corp and Should I Become One in 2023? In this episode of the Small Business Tax Savings Podcast, Mike provides an in-depth analysis of the advantages of becoming an S-corporation. Mike reviews the different entity types and explains why an S-corporation is often a better option.  Mike covers topics of what an S-corporation is, when to become one, how to set it up, what constitutes a reasonable salary for an S-corporation owner, and how to maintain an S-corporation after.Tune in now as Mike discusses all the details on how to minimize self-employment taxes and save money legally by electing to be taxed as an S-corporation![00:28] What is an S-Corp and should I become one in 2023?Today’s episode is, “What is an S-Corp, and Should I become one in 2023?”Mike discusses everything you need to know about S-corporations[06:01] When Does An S-Corporation Make Sense?Self-employment taxes are roughly 15% of business profitsAn S-corporation makes sense when the business starts to profit around $40, 000 - $50, 000 per yearYou pay self-employment taxes on the reasonable salary option that you take as an owner of the companyBy electing for S-corporation status, you can avoid self-employment taxes on income over and above the reasonable salary[10:32] What Are The Downsides Of An S-Corporation?What are the downsides of an S-corporation?Having separate business tax returns which is more complex and costlyIn order to be an S-corporation, you need to have an LLC or C-corporation set upS-corporations help minimize self-employment taxes[16:54] Closing SegmentMike discusses all the details on how to minimize self-employment taxes and save money legally through electing be taxes as an S-corporation!Final WordsKey Quotes“S Corp is simply a tax election. It is not an entity type. We're just electing for an LLC that we already have set up, or a C Corporation that we already have set up. We're electing for that entity to be taxed as an S Corporation. And really, the main reason for an S Corporation is to help lower the amount of self-employment taxes you pay.” – Mike Jesowshek, CPA--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textHow Is Your Income Taxed? In this episode of the Small Business Tax Savings Podcast, Mike breaks down the basics of taxation so that listeners can create a roadmap for their own businesses.Mike explains two main types of tax – ordinary income tax and capital gains tax, as well as self-employment taxes and FICA taxation for W2 employees. He covers the different types of income taxes, such as earned income, passive income, and portfolio or investment income.Tune in now as Mike uncovers the complexities of taxation and learn how it can help you become informed on ways to pay the least amount of taxes legally possible![00:25] Understanding How Taxes WorkToday’s episode is, “How Is Your Income Taxed?”There are two main types of tax: ordinary income tax and capital gains taxOrdinary income tax rates depend on factors such as marital status, household status, etc.[01:29] The Difference Between Ordinary Income Tax and Capital Gains Tax RatesOrdinary income tax rates depend on factors such as marital status, household status, etc.Capital gains tax are taxed at preferred rates of 0%, 15%, or 20% compared to the ordinary income tax rateShort-term capital gains, assets held for less than a year, are taxed at an ordinary income tax rateEarned income is taxed at the ordinary income tax rate and self-employment taxes may apply[12:40] The Benefits Of Passive Income and Investment IncomePassive income is not subject to FICA or self-employment taxesPassive losses can only offset passive incomePortfolio or investment income is taxed at ordinary income tax ratesFor assets held for more than one-year, a preferred capital gains tax of 0%, 15%, or 20% depending on the income is applicable [15:38] Closing SegmentMike shares his knowledge in order for listeners to uncover the complexities of taxation and learn how it can help you become informed on ways to pay the least amount of taxes legally possible!Final WordsKey Quotes“I would never advise every business owner to fully understand taxes. That's why we have accountants. That's why, we come in and help clients in certain areas. But having a basic understanding of how tax works is so key to a really painless amount of taxes legally possible. It's important for you as a business owner to have that foundation knowledge.” – Mike Jesowshek, CPA--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textWhat Retirement Plan Options Are Available For My Business in 2023? In this episode of the Small Business Tax Savings Podcast, Mike interviews Matt Ruttenberg from Life Inc. Retirement Services about retirement plan options available for small businesses in 2023.Matt dives into the different types of retirement plans available for business owners, including traditional IRAs, ROTH IRAs, SEP IRAs, Solo 401Ks, Simple IRAs, and the new Starter 401K coming out in 2014. Tune in now as Matt discusses the importance of saving money on taxes and creating a secure future for themselves and their employees![00:30] Retirement Plan Options For Small Business OwnersToday’s episode is all about retirement plan options that are available for your business in 2023Mike interviews Matt Rutenberg, the CMO at Life, Inc. Retirement Services[09:00] Maximize Retirement Savings with SEP IRA, Solo 401K, and Simple IRA OptionsThe goal of a retirement plan is to save money on taxes or recruit/retrain employeesTraditional IRA and ROTH IRA available for personal retirement savingsSEP IRA option for solo business owners with employer contributions up to $66, 000He hints that ROTH contributions may be allowed into SEP IRAs[12:30] Exploring Retirement Options For Business OwnersSEP IRA has a maximum contribution of $25, 000Solo 401K is a better option as it allows for an additional employee contribution of $22, 500 in 2023Traditional IRA and ROTH IRA are the two main retirement options for solo business owners with no outside employeesPayroll-directed IRA is available for business owners with outside employees or non-owner, non-family members      [19: 00] Closing SegmentMatt offers his advice on the importance of saving money on taxes and creating a secure future for themselves and their employees!Final WordsConnect with Matt!Website: Life Inc.LinkedIn: Matt RuttenbergTwitter:  @Matt_RuttenbergInstagram: @Matt_RuttenbergFacebook: Life Inc. RetirementKey Quotes“If you're trying to segment out certain employees or yourself, you might have to go towards a non-qualified plan because if you have a qualified plan like a 401k, Simple, there's rules and fairness… If you are non-qualified, it removes all those fairness rules, and then you can start targeting certain individuals and so on and so forth.” – Matt Ruttenberg--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textHow do you avoid an IRS audit? In this episode of the Small Business Tax Savings Podcast, Mike discusses how to prevent an IRS audit, from co-mingling personal and business expenses to having separate bank accounts and credit banks, ditching cash payments, and taking bookkeeping seriously.Mike provides tips on what’s needed for business purposes and how to prove payment. He explains the details behind documenting automobile expenses like mileage logs and receipts to support the business purpose.Tune in now as Mike shares his advice on being aggressive in taking advantage of laws that are advantageous to you, so you can ensure you have all the documentation you need for your expenses in case of an audit![00:25] The Best Practices To Avoid An IRS AuditToday’s episode is all about avoiding an IRS auditWhat are the best ways to avoid an IRS audit?[05:00] How To Avoid An IRS Audit As A Small Business OwnerThe documentation needed for business expenses:Receipt/invoice with a dollar amountProof of paymentItemized receipts are recommended to have as much detail as possibleWho, what, where, when, and why should be written directly on the receipt for any business expense?[07:16] Understanding What Documentation Is Needed For Business Expenses And Automobile ExpensesProof of payment is required to ensure that a payment was made for the itemDocumentation should be kept in a digital fileA mileage log is required for automobile expensesDocumentation should include details of the business purpose of the trip  [15: 55] Closing SegmentMike shares his advice on being aggressive in taking advantage of laws that are advantageous to you!Final WordsKey Quotes“As a business owner, you have a huge advantage… You have nothing to worry about because you have all the documentation to back it up. Be aggressive. We always say be aggressive, but don't get greedy.” – Mike Jesowshek--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textAre you struggling to save money on your small business taxes? In this episode of the Small Business Tax Savings Podcast, Mike discusses how to maximize meals and travel deductions, separate entertainment expenses from meals, and find a business purpose for all meetings that involve food or drinks.Mike provides examples of deductible meal expenses such as dining with prospects or staff members, company parties and presentations, team-building activities, recreational events and more.Mike adds more items that are eligible for deductions, which are transportation costs, lodging expenses, and rental cars.Tune in now as Mike shares an example of how a road trip can be used as both a business trip and a personal vacation if planned correctly![00:00] Maximizing Tax Deductions For Meals And TravelToday’s episode is all about maximizing meals and travel deductions!Mike states that starting in 2018 with the Tax Cuts and Jobs Act, entertainment expenses are no longer deductible, but the meal portion around that entertainment can be expenses[01:38] Unlocking The Potential Of Travel ExpensesCompany parties or presentations and food for restaurants are 100% deductibleMeals are generally 50% deductible when dining with a prospect, client, vendor, staff member, or team memberMike provides examples of expenses:Potential client/employee team mealsCompany parties/presentationsOffice meals and foodFood and drinks at golf outingsTeam building/recreational eventsMeals at a country club[13:59] Maximizing Business Deductions And Write-OffsMeal and drink of a country club membership is deductible if used for business purposesSolo meals and drinks are deductible if it is part of a business meeting or on an overnight tripTravel expenses such as transportation, lodging, car rentals, tolls, parking, taxies, Uber are deductibleWhat is considered a “Business day”?  [15: 53] Closing SegmentMike shares how a road trip can be used as both a business trip and a personal vacation if it’s planned correctly!Final WordsKey Quotes“Don't get greedy. Do the sniff test on these items, and make sure you're documenting and supporting to help back all this up.” – Mike Jesowshek--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textHow Can I Maximize Office Expenses and Employee Benefits? In this episode of the Small Business Tax Savings Podcast, Mike discusses how to shift from after-tax spending to pre-tax spending, highlighting acceptable expenses that qualify as ordinary and necessary.Mike offers a guide to maximizing available business deductions and discusses planning opportunities for maximizing deductions in technology write-offs, subscriptions, and memberships.Mike emphasizes the importance of finding business purposes for expenses in order to take advantage of tax deductions as a business owner. He talks about de minimis benefits which are small and infrequent gifts or items that can be given to employees without tax.Tune in now as Mike offers an ultimate guide to business deductions at his website and learn valuable insights on office expenses and employee benefits! [00:00] Maximizing Office Expenses And Employee Benefits For Small Business OwnersToday’s episode is about how you can maximize office expenses and employee benefitsMaximizing shift toward expenses and employee benefits for small business ownersThe mindset shift towards pre-tax spending instead of after-tax spending[05:56] Planning Opportunities For Business OwnersWhat is included in employee benefit expenses?Capitalization and depreciation for items over $2, 500Technology write-offs overlooked by business ownersSubscriptions and memberships can have a business purpose and be deductible[10:11] Maximizing Tax Deductions Through De Minimis Fringe BenefitsPlanning opportunities to maximize deductions for business ownersDe Minimis benefits are small and infrequent gifts that are tax-free to the recipient and deductible for the businessWhat is not included with de Minimis benefits?The activity must be primarily for the benefit of employees other than highly compensated employees, owners, and family members[13:36] Closing SegmentMike advises listeners that maximizing deductions requires a mindset shift toward pre-tax expenses and an understanding as a business deductionFinal WordsKey Quotes“If we can find a business purpose for it, it's ordinary and necessary in our business, we have that business purpose, we have support to back that up, that can be a business expense.” – Mike Jesowshek--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textDid you know that there are many tax deductions available that can help you save money? In this episode of the Small Business Tax Savings Podcast, Mike discusses maximizing advertising and gift deductions, which is part of a bigger series on business deductions and write-offs.Mike talks about advertising expenses, these refer to costs associated with promoting a company or brand through media buys, social media, website creation, and influencer marketing, among others. The key is finding a business purpose for everyday spending to turn into pre-tax spending.Mike explores the different ways to maximize tax deductions through charitable contributions, advertising expenses, and gift expenses. He delves into ways to categorize gifts as advertising expenses, such as placing logos on items or using them for training.Tune in now and check out Mike’s guide for more in-depth information on maximizing deductions while growing your small business! [00:00] Maximizing Advertising And Gift Deductions For Small Business OwnersToday’s episode is about Maximizing  Advertising and Gift DeductionsAdvertising expenses include promoting your business through various channels such as TV, Radio, Social Media, websites, etc.Gift expenses can be deductible if they are ordinary and necessary business expenses[00:50] Planning Opportunities For Business OwnersThe goal is to turn after-tax spending into pre-tax spending by finding a business purpose for everyday spendingSwag items with company logos are considered advertising expensesAdvertising expenses include promoting the brand at conventions or through contestsPlanning opportunities exist to move spending from channels[09:33] Turning Charitable Contributions Into Advertising ExpensesSponsoring a charity event or doing a charity drive can be considered an advertising expense if it leads to business growthReview-based donation systemPlanning opportunities for gift expenses include different categorizations and gifting to married couples or familiesBranding and logo can turn gifts into advertising expenses [14:17] Closing SegmentMike advises listeners that any items that cost $4 or less with your name on it are not considered gifts by the IRS  Final WordsKey Quotes“With the Tax Cuts and Job Act, the new standard deduction is increased. So many people actually lose out on getting a tax advantage of giving to charity if their itemized deduction is lower than what the standard is. So, if you can find a way to tie this type of spending to advertising, you can take it as an advertising expense, which is going to be more beneficial to you than a charitable contribution.” – Mike Jesowshek--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a textHow do you maximize deductions in your business? In this episode of the Small Business Tax Savings Podcast, Mike explores the core concept of deducting ordinary and necessary expenses as pre-tax spending, rather than after-tax spending.Mike provides an overview of various deductible expenses, including contract labor or outside services and insurance premiums. Before paying contractors, he advises a W9 from the m and sends 1099 at year-end.Mike covers various business expenses that are deductible, including life insurance for employees (if the company is not a beneficiary), interest on loans and mortgages, repairs and maintenance, taxes and licenses, and wages and salaries for employees. Mike emphasizes the importance of turning after-tax spending into pre-tax spending and ensuring that expenses are ordinary and necessary in your line of business.Tune in now so that you won’t miss out on the opportunity to grow your business while saving on taxes! [00:00] Maximizing Business DeductionsToday’s episode is about maximizing deductions in businessMike provides an overview of various deductible expenses, including contract labor and insurance premiums[01:07] Understanding Business ExpensesWhat are examples of deductible expenses?Life insuranceInterest in business expenseRepairs and maintenance expensesTaxes and licenses related to businessSales tax collected from buyers must be included in gross receiptsWage and salaries for employeesMaximizing deductions is about running after-tax spending into pre-tax spending[12:00] How To Lower Your Tax Liability And Saving MoneyBusiness expenses must be ordinary and necessary in your line of businessOther general expenses include bad debts, bank service charges, commissions and fees, education and training for business-related continuing education, legal and professional servicesNot getting greedy with deductions and doing the “sniff test” to ensure the legitimacy[13:24] Closing SegmentMike encourages listeners to check out the ultimate guide to maximizing business deductions and write-offs for full documentation requirementsFinal WordsKey Quotes“If you have an employee or if they get to the phase where they would be categorized as an employee, that's going to be separate. That's going to be recorded in their wages and salaries.” – Mike Jesowshek--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com