Small Business Tax Savings Podcast

Send us a textAre you ready to learn the In’s and Out’s of selling a small business? On this episode of the Small Business Tax Savings Podcast, we welcome back Stuart H. Sorkin from Business and Legal Advisors to discuss how to eventually exit from your business. This is part two of a two-part series where he discusses why owners exit their business and how to best prepare for it. Stuart H. Sorkin discuss how to best prepare for an exit from a business. He tackles topics such as separating lifestyle businesses from other types of businesses, creating a management team, and handcuffing key employees to ensure the success of the M&A process.This conversation provides insight into the due diligence process for selling or buying a business and the importance of finding a professional with experience in mergers and acquisitions. He discusses the important of an LOI when negotiating an acquisition and some key points for sellers to consider, such as warranties, taxes, liabilities, and post-acquisition services Tune in now to learn more about planning for your eventual exit from your business! [00:01] Critical Considerations For A Successful AcquisitionCreating a business that has value and can go beyond the ownerThe difference between a lifestyle business and other types of businessesDelegating decisions to create a management teamSelling a business as an absentee owner[05:15] Navigating The Complexities Of The Due Diligence Process In Business DealsAn Overview of the M&A processA Letter of Intent (LOI) is a non-binding document outlining the transactionSellers should specify an amount related to the covenant not to competeGolden handcuffing key employees in advance can prevent “deal failure”[11:16] Maximize Your Return And Minimize RiskIt is important to seek professional counsel prior to signing an LOIAn LOI may include an exclusivity clause, where the seller cannot talk to anyone else while due diligence is taking placeCashless transactions are becoming more common, where the seller gets equity instead of cash[15:03] Understanding The M&A ProcessSellers should not hide anything during the process as it could come back to bite themIt is important to find a professional who understands M&A work to protect yourself and maximize returnTax planning should be done before the deal closes in order to maximize tax strategies[17:59] Closing SegmentFinal wordsKey Quotes“The point is that you're going to negotiate… There's usually an exclusivity clause that says you can't sell while I'm doing due diligence. You can't even talk to anyone else during due diligence. So, if the deal falls apart, you got to be ready. You've also been off the market for a period of time.” – Stuart H. SorkinResources MentionedConnect with Stuart:Stuart on LinkedInBusiness and Legal Advisors Webpage--------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 84

Send us a textDo you know why every owner exit their business and how can you prepare for this? On this episode of the Small Business Tax Savings Podcast, we welcome Stuart H. Sorkin from Business and Legal Advisors to discuss the ins and outs of exiting a business. This is part one of a two-part series geared towards educating people on what an exit plan looks like and what to consider when leaving their business. Stewart explains that there are six different ways an owner can exit their business: selling to family, management, a third party, becoming an absentee owner, having it liquidated or dying. He also encourages creating a strategic plan from day one in order to ensure that all partners have the same goals in mind.  Stewart dives into important topics such as the importance of finding a trusted employee to run the business until it is ready to be sold, aligning the goals of key employees with those of the owner, building a due diligence library as part of preparation for potential sale and accounting for unplanned exits from the business. He stresses how important it is to think about the future but also factor in changes that may occur along the way.  This conversation touches upon many key points that will help you understand how to best prepare your business for sale and create an exit strategy from day one. If you are in the process of or thinking about exiting your business, tune in now for this insightful discussion! [00:00] Exploring Business Exits·         Every owner will exit his business in one of six ways: selling to family, selling to management, selling to a third party, becoming an absentee owner, liquidating, or dying.·         If an owner does not choose one of the first four options, one of the last two will happen.·         Partners need to have aligned goals and they must agree on the number they need out of the business.·         Financial planning should be done to determine what is needed from the business for retirement  [04:35] Planning for the Future·         Strengths and weaknesses of the business and management team should be identified·         Business owners should consider delegating tasks they don't like doing·         A strategic plan should be created with a perfect scenario 10-15 years out ·         Plans should be adjusted as needed, but there needs to be a destination in mind ·         Consider unplanned exits such as family members or management team leaving [08:55] Preparing for a Potential Sale at Any Point in Time·         At some point, you need to find a key employee that you trust to run the business until it is ready for sale. ·         Tie this person in with a stay bonus or percentage commission on the sale of the business. ·         Align key employees' goals with yours regarding an eventual sale. ·         Make sure the business is not too dependent on one or two customers. ·         Always be prepared for a potential sale of the business. [13:28] Creating a Plan for Growth·         Common goals and objectives should be established for a startup·         Financials and personal goals should be taken into account·         Avoid becoming an "absentee owner" by delegating tasks·         Businesses should have a plan for growth

Send us a textAre you ready to create a successful business plan for 2023? On this episode of the Small Business Tax Savings Podcast and hear from Mike on how to set up your business for success. This episode dives into the importance of bookkeeping, tax planning, and strategic planning. Learn how to create a perfect scenario, three- and five-year plans, and a list of action items that need to be completed this year. Find out why having an accountability partner is so important in staying motivated and meeting goals, as well as which websites are great resources for finding more information about tax savings. Finally, get tips on tracking progress during regular board meetings and making adjustments as needed.[00:00] Discover How to Achieve Your Perfect Scenario with Strategic Planning ·         Strategic planning in a business is where a business defines its strategy or direction and then makes decisions or plans on how it can get there.·         Determine your perfect scenario: step away from your business for half a day and brainstorm what your perfect scenario would look like in 10-15 years.·         Do your five-year plan, and three-year plan, and determine and implement your 2023 strategic plan.·         Examples of things that may come up during brainstorming session: having your personal residence fully paid off, having a vacation home, working only two to three days per week, having a business profit of a million or 5 million or a hundred thousand dollars, having investments and or savings greater than 5 million, etc.[04:42] Creating a Three- or Five-Year Plan and Annual Strategic Plan for Your Perfect Scenario·         Three- or five-year plan: list of action items and goals to complete in the next three or five years·         Annual strategic plan: specific action items to do this year to start chipping away at future goals·         Examples of action items: hire a social media marketing firm, grow social followers, close new sales, hire staff members, max out retirement accounts, put money into investment/savings account, hire kids and fund their Roth, set up a bookkeeping system, tax planning[08:50] Strategic Planning, Bookkeeping, and Tax Planning·         Take some time to put together a strategic plan for 2023·         Include building out your perfect scenario, three- and five-year plans·         Check back throughout the year during regular board meetings to see progress·         Start researching and learning about tax strategies available to everyday business owners·         Get an accountability partner to ensure sticking with the plan [12:15] Closing Segment Final wordsKey Quotes“The ultimate goal here is to build out a roadmap. A roadmap that's going to take you or lead you to that perfect scenario.” – Mike Jesowshek“This is your opportunity to dream, your opportunity to think of what would things look like if everything was perfect in 10 or 15 years.” – Mike JesowshekResources MentionedBlog Posts: ·         https://www.taxsavingspodcast.com/blog/how-can-i-setup-my-business-for-success-in-2023 --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages:

Send us a textDo you want to set up your small business for success in 2023? On this episode of the Small Business Tax Savings Podcast, we discuss key steps and action items to make sure you are ready to make a major impact. In this episode, Mike discusses how small business owners can set up their businesses for success in 2023. Mike emphasizes the importance of bookkeeping and provides tips on how to do it regularly, keep separate business and personal financial accounts, and maintain accurate records and receipts. Mike also advises creating a budget, reviewing financial statements, and setting goals for the future. Other tips include automating tasks, staying organized, and seeking professional help when needed. [00:00] 3 Key Bookkeeping Tips to Help You Grow and Pay Less in Taxes• Bookkeeping is the backbone to every business and should be done regularly (monthly at a minimum). • Set up a separate bank account and/or credit card for your business and avoid commingling personal and business expenses. • Keep great records and receipts to ensure accuracy in bookkeeping. [04:07] Maximize Your Tax Savings in 2023• Record business expenses as an owner's draw or reimburse yourself• Create a spreadsheet of business expenses on personal accounts• Utilize an accountable plan for personal expenses related to the business• Keep great records and receipts digitally • Consider using cloud-based accounting software • Budgeting is important for understanding your business's financial performance and setting goals [08:07] Start the Year Right• Implement strategies while they are fresh in your mind• Join our tax minimization program or hire a tax strategist• Think about tax planning first, then tax filing and preparation• Strategic planning is important for business success [12:15] Strategic Planning and Tax Savings Tips• Read and listen to the resources that our podcast offer• Take bookkeeping seriously and update it regularly • Don't have any commingling of business and personal items • Keep receipts and documentation • File digitally and keep on file • Research, listen, read, and implement ideas • Put a strategic plan together • Get an accountability partner  [12:59] Closing Segment• Final words  Key Quotes  “Bookkeeping is the backbone to every business.” – Mike Jesowshek “If you keep up with your bookkeeping on a regular basis, you keep business and personal items separate, and you file all necessary documents in a digital file as soon as you receive them, you will have less stress, be on top of your business and pay less in taxes”. – Mike Jesowshek  Resources Mentioned Blog Posts: ·         https://www.taxsavingspodcast.com/bookkeeping  --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight 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

Send us a textAre you dreading tax season? Join us on this episode of the Tax Savings Podcast as we discuss how to best prepare for tax season in 2023. Mike will cover a variety of topics, including action items such as completing bookkeeping, gathering receipts, bank statements, loan documents, asset purchases or sales, and completing an accountable plan. Mike will also provide helpful advice on due dates related to the 2022 tax year and tips on how to best prepare for filing. Plus, he is going to discuss how to create a system in place for tax documents that makes the upcoming tax season easier and stress free. Don’t miss out on this valuable information![00:00] What Your Accountant Needs and Tips to Make it Stress-Free·       Be proactive and get your documents and financials in order at the beginning of the year.·       Complete your bookkeeping as soon as possible and wrap up the previous year.·       Gather all necessary documents, including receipts, bank statements, loan documents, asset purchases/sales, and accountable documents.·       Consider using digital tools to organize and store your documents[04:02] Gather Documents, Complete Your Accountable Plan, and Send to Your Accountant·       Separate interest and principle when doing bookkeeping for loans.·       Let your accountant know if you made any asset purchases or sold any assets that are already on your books.·       Complete your accountable plan and add the activity to your books. ·       Send income statement (profit & loss) and balance sheet to accountant ·       Gather all tax documents and put them in one digital file before sending to accountant [07:44] Gathering Tax-Related Documents for Tax Season ·       Gather documents such as last year's tax return, payroll documents, 1099s, 1098s, K-1s, health insurance forms, 1098-E for student loan interest and 1098-T for tuition·       Collect information on real estate taxes, medical expenses, charitable contributions, childcare expenses and estimated taxes·       As a business owner, keep track of estimated tax payments.·       Create a spreadsheet with all of the collected information [11:21] 2022 Tax Year Due Dates and Tips for Business Owners·       Quarter 4 estimated tax payments are due on January 16th.·       W-2 and 1099 forms are due to recipients by January 31st.·       S corporation, partnership, and multi-member LLC tax returns are due on March 15th or can be extended by that date.·       Personal, single member LLC, and C corporation tax returns are due on April 18th or can be extended by that date. April 18th is also the deadline for IRA and HSA contributions for 2022.·       To minimize stress, it is helpful to have a system in place for organizing tax documents as they come in throughout the year.  [16:00] Closing Segment• Final words Key Quotes“Take the time now to gather all of your tax documents and have a system in place for organizing them. This will make tax season a breeze and allow you to focus more on your business”. – Mike Jesowshek Resources MentionedBlog Posts:·       https://www.taxsavingspodcast.com/blog/how-do-i-reimburse-

Send us a textOn this episode we had Will DeShazo from Growth Tools on to discuss how you can build an email list utilizing a lead magent.Resources MentionedBlog Posts:https://videofruit.com/blog/how-to-build-an-email-list/https://videofruit.com/blog/lead-generation-coaching/https://videofruit.com/blog/lead-magnet/Workshop:https://www.youtube.com/watch?v=m_VajqZhYro--------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 textOn this episode Shannon Weinstein and I have a discussion together.  This is a cross-over episode between our two shows.We discussed:How to decipher good advice online.How to find a professional who's looking out for you.How to educate yourself on these types of complicated topics while also empowering yourself.Competition, how everyone is welcome in this space, and why Shannon and I believe collaboration is so important.Resources MentionedKeep What You Earn Podcast:https://podcasts.apple.com/us/podcast/keep-what-you-earn/id1580071347--------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 textOn this episode we invited David Price and Zhenya Slack from Delphinus Capital to talk SBA loans. The SBA 7(a) loan program is the most popular and most used type loan of the Small Business Administration's lending program. The loan program is designed to assist small businesses obtain capital with reasonable terms and rates. We discussed:What is an SBA 7(a) Loan?Who is Eligible for an SBA 7(a) Loan?In addition to the traditional SBA 7(a), there are 2 very rare programs that aren’t offered through most of the traditional banks. It’s through the SBA 7(a) Express Working Capital program.Resources MentionedBlog Posts:https://www.taxsavingspodcast.com/blog/what-is-an-sba-loan--------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 textThere are a couple of weeks left before the year ends, and small business owners should be thinking about ways to reduce their tax burden before year-end to maximize savings. That is why in this episode Mike is going to be discussing year-end tax strategies, such as bonus depreciation, credit card reimbursement, prepaying expenses, and buying equipment for your business, among other things.   [00:00] What Do I Need to Prepare for Tax Savings at Year-End• The IRS safe harbor rule allows cash basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance.• This includes business insurance premiums but basically you can prepay up to 12 months in advance and get the deduction here in the year that you make the payment.• Not billing customers, clients or patients temporarily can shift income from this year into a future year. [04:23] Strategies to Save on Taxes • Buying equipment or vehicles now can potentially save money in taxes in the future but remember only buy things that your business really needs and will use.• Bonus depreciation is still at 100% in 2022, but it will be reduced each year after that.[08:37] Don't Overthink Making Deductions• Mike shares on why you can deduct the full $100,000 in 2022 using a 100% bonus depreciation. And if you wait until 2023, you're only gonna be able to deduct $80,000 or 80% in bonus depreciation in year one.• He also discusses if you should rush out and purchase business property before 2022 ends to take advantage of that 100% bonus depreciation and why is not necessarily the case. [12:46] Prepaying Expenses for a Tax Deduction • If your business expenses exceed your income, you have a loss for the year. This is called a net operating loss and can be carried forward.• You should never stop documenting your deductions and claiming what is rightfully yours.• Prepaying expenses can help you move income from one year to another, and can also create a tax loss in the year you prepay them. [16:45] A Recap of Tax-Saving Strategies• Try to always your credit cards in most cases.• Don't assume you're taking too many deductions.• If you are not operating at a loss, don't be afraid that loss is gonna carry forward an offset future income.• Don't stop taking deductions that are valid legal and available to you simply because you don't want to go to a loss.[18:09] Closing Segment• Final wordsKey Quotes“Do not assume you are taking too many deductions. The IRS code was written the way it was for a reason, so that you as a business owner can take advantage of it”. – Mike JesowshekResources MentionedBlog Posts: ·         https://www.taxsavingspodcast.com/blog/what-year-end-tax-strategies-are-available-to-business-owners·         https://www.taxsavingspodcast.com/blog/what-is-depreciation-for-my-business-when-does-a-capitalization-policy-make-sense·         https://www.taxsavingspodcast.com/blog/what-do-i-need-to-prepare-for-tax-savings-at-year-endLast Episode ·         https://podcasts.apple.com/us/podcas

Send us a textHey Small Business Owners! In this episode, we're going to be talking about what you need to do in order to prepare for the end of the year. Specifically, we're going to be discussing things like salary calculation, charitable contributions, recordkeeping, and maximizing deductions.  Make sure you're doing your homework and getting ready for the end of the year.[00:00] Small Business Tax Tips for Year End• If you're taxed as an S corporation, make sure you're taking a reasonable salary and paying self-employed health insurance premiums.• Before December 31st, be sure to review your year-end tax strategies, including yearend salary and health insurance deductions.• Make sure your payroll provider is aware of any changes to your self-employed health insurance premiums.[04:04] Underlooked Strategies to Increase Deductions• There are specific things that an accountable plan must include in order to be considered valid, such as adding health insurance to your W2 and finalizing reimbursements.• Maximizing deductions can include trading business purchases for tax breaks, but only if the purchase is necessary for the business.• Hiring family members in your business can be a great way to reduce taxes and support them at the same time.[07:44] How to Maximize Business Deductions and Write-Offs• Mike reminds us of some key points to remember before year-end, including establishing or funding a retirement plan and taking care of business gifts.[11:12] Ways to Prepare your Bookkeeping• Make sure you're completing any charitable contributions of either cash or property or goods.• Remember to take advantage of charitable deductions if you're not itemizing, and to complete your bookkeeping up to date.• Start to file various tax documents and receipts as you receive them.[14:51] Essential Planning for Filing Taxes• Make sure you're paying a reasonable salary before year-end. This salary needs to be completed before year-end.• If you're thinking about funding a set IRA or a solo 401k, make sure you're factoring that into your salary calculation.[18:09] Closing Segment• Final wordsKey Quotes“When we talk about maximizing deductions, we're not necessarily talking about going out and buying things you don't need. But rather, we're talking about how can we move after-tax spending money that you're already spending.” – Mike JesowshekResources MentionedBlog Posts: https://www.taxsavingspodcast.com/blog/what-is-a-reasonable-compensation-for-an-s-corporation-ownerhttps://www.taxsavingspodcast.com/blog/how-does-the-deduction-for-self-employed-health-insurance-workhttps://www.taxsavingspodcast.com/blog/why-should-i-hire-my-kids-in-my-business https://www.taxsavingspodcast.com/blog/how-can-i-maximize-business-deductions-and-write-offs-------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------