Planning for Taxes
If you own a business, your income & expenses are treated differently under IRS rules.
Rather than receiving a W2 salary, you may report business income & be able to deduct eligible business expenses.
This structure may offer potential tax advantages, depending on your circumstances. Clients should consult their tax advisor about their specific situation.
For younger self-employed entrepreneurs, tax planning may include opening a SEP IRA or Solo 401(k) to begin saving for retirement. Contributions may be tax deductible & the money can grow tax deferred until withdrawal. Distributions are generally taxed as income, but you may be in a lower tax bracket later in life. Clients should consult their tax advisor about their individual situation.
